The big buzz this summer is about Big Data with investors going nuts searching for Big Data plays. May 17th was the IPO of DATA. It raised $254.2mm at $31 and finished its first day of trading up 63.7% to $50.75, and is now $56.68 up 82.8% from its IPO. DATA has a market cap of $3.26 billion with sales of only $143mm!
The VC firm that funded FB, Accel Partners, announced last week they are spending $100mm to form Big Data Fund 2. According to GOOG Trends, interest in Big Data Analytics has increased every month of 2013, with buzz up 66.7% since the end of December. In the 19 months since Accel formed their first $100mm Big Data Fund, interest in Big Data Analytics has increased 567%!
Many Big Data plays are expected to file for IPOs this summer with hopes of reaching billion dollar valuations and double-digit price/sales ratios! We are about to experience a modern day Gold Rush as Big Data revolutionizes a wide range of industries - including the $100 billion cable TV industry! A new article "How Big Data Keeps Cable TV Watchers Hooked" discusses pay-TV operators using Big Data to launch ad campaigns that follow users from TV to the web, while stopping users from migrating to NFLX.
The #1 Big Data Analytics company serving pay-TV operators is already public and almost nobody knows about it: Concurrent Computer (CCUR). It could double or triple as Big Data investors begin to discover it! CCUR is currently $7.39 with an enterprise value of only $42.32mm or 0.67X sales of $63.23mm vs. DATA trading with a price/sales ratio of 22.79! CCUR only needs a business valuation of 2X sales for it to more than double to $17, and a business valuation of 3X sales for it to more than triple to $24.22!
CCUR's revenues, gross profits, operating income, and EPS - has risen quarter-after-quarter for 12 months straight! CCUR's 3Q EPS was up 175% YOY and its 4Q results could be very strong due to the recent signing of a HUGE deal with Virgin Media!