The biggest short-term percentage gainer will likely be Concurrent (CCUR)! Ericsson (ERIC) just announced they are paying Microsoft (MSFT) nearly $200mm to acquire their Mediaroom multi-screen video software division in order for ERIC to increase their multi-screen reach by 11mm pay-TV households to 16mm. CCUR's MediaHawk multi-screen software is superior to Mediaroom and CCUR has signed multi-screen deals with the #1 pay-TV companies in Germany, the UK, and Japan. These multi-screen clients will give CCUR an initial multi-screen reach of 14.8 million pay-TV subscribers, which is bigger than Mediaroom's reach, and ERIC is paying MSFT almost $200mm for it!
You won't believe this but CCUR is receiving no value for its video business at its current share price of only $6.75! CCUR has 8.72mm shares outstanding and a huge cash position of $24.6mm (with no debt). CCUR's enterprise value is only $34.26mm, which is just 0.52X its annualized revenues of $66.4mm and only 3X its cash flow from operations over the past nine months annualized! CCUR's video business, which has also captured the largest video-on-demand (VOD) market share in the pay-TV industry with a reach of over 50 million pay-TV subscriber households, is receiving no value after subtracting the value of CCUR's Media Data Intelligence (MDI) and real-time businesses from its current enterprise value!
CCUR's MDI business cost CCUR $15mm to acquire. It tracks in real-time the TV viewing behavior of 35 million pay-TV subscribers across all screen types. CCUR's "real-time" ultra high performance computer technology business has annualized revenues of $27.6mm with 4 of the 5 largest defense contractors as clients. It is most likely worth a lot more than $25mm by itself.
This means CCUR's video delivery solutions business, which has annualized revenues of $33.8mm, is receiving zero value! CCUR is extremely profitable, leads the VOD industry, and is capturing a huge share of the new booming multi-screen video market!