CCUR Could Explode Like NFLX Over the Next 2 Weeks!
Concurrent (CCUR) is capitalizing big time on NFLX's success and allows companies to deliver any video format over any network to any device! Harmonic (HLIT) yesterday increased to a new 52-week high of $6.02 and reported after the close a non-GAAP EPS loss of ($0.02), which was down $0.05 from a non-GAAP EPS profit of $0.03 last year. HLIT's trailing twelve month non-GAAP EPS declined from $0.25 to $0.20 and HLIT finished afterhours trading at $5.89 with a P/E of 29.45.
While HLIT's non-GAAP EPS declined $0.05, CCUR's EPS will likely rise $0.05 when they report on April 23rd. CCUR is expected to report GAAP EPS of $0.09 and non-GAAP EPS of $0.13 vs. GAAP EPS of $0.04 and non-GAAP EPS of $0.08 last year. CCUR's trailing non-GAAP EPS will likely rise by $0.05 from $0.35 up to $0.40! This means CCUR will have double the trailing EPS of HLIT and CCUR closed yesterday at just $6.77, barely above HLIT's afterhours trading price of $5.89. CCUR looks set to make a run to double HLIT's share price, which would be $11.78 per share!
CCUR has only 8.72mm o/s, a market cap of $59.03mm, $24.6mm in cash, no debt, and a very low enterprise value of $34.43mm or just 0.55X trailing revenue of $62.59mm. CCUR has very big gross margins of 58.81%, which are 30.69% higher than HLIT's gross margins of 45%. HLIT currently trades with an enterprise value/revenue ratio of 0.93. Clearly, CCUR deserves a multiple that is 30.69% higher than HLIT. This would give CCUR an enterprise value/revenue ratio of 1.22 and value CCUR at $11.58!
HLIT just sold their cable access business for $46mm in cash. It was breaking even with $52.9mm in revenue and sold for 0.87X revenue when it had very low gross margins of 30%! CCUR's gross margins are nearly double and CCUR is about to report their fifth straight quarter of profitability! There is no way on earth that CCUR should have an enterprise value/revenue ratio of below 1, which equals a CCUR share price of $10! CCUR could quickly rise to double digits!