Industry Consolidation Could Make this Low Float Stock Double this Month!
CCUR is insanely undervalued - will capitalize most on this year's hottest and fastest growing technology market - multi-screen video middleware! CCUR is the innovator that first brought VOD as well as its Emmy Award winning "start over" to the pay-TV industry! CCUR now holds the #1 VOD market share with a total reach of 50mm VOD households!
CCUR's enterprise value at Wednesday's closing price of $7.16 is only $37.84mm. CCUR paid $15mm in cash to purchase their media data intelligence (MDI) business, which tracks the viewing behavior of 35mm pay-TV subscribers. CCUR's real-time business has been around for 47 years and currently has annualized revenue of $27.6mm with 4 of the world's 5 largest defense contractors as clients! NIA is sure that CCUR's real-time business alone is worth at least $25mm.
CCUR needs an enterprise value of $40mm just to receive fair value for its real-time and MDI businesses. A CCUR enterprise value of less than 40mm like it has today means CCUR's main business - its profitable MediaHawk multi-screen video solutions business with $33;8mm in annualized revenue - is receiving no value at all! CCUR has a 30% VOD market share and expects to capture a similar share of the multi-screen video market, which is currently in its infancy
ERIC this week agreed to pay MSFT nearly $200mm to acquire their Mediaroom multi-screen video solutions. Mediaroom's largest U.S. client is AT&T U-Verse, which has helped it achieve a multi-screen reach of 11mm households. ERIC already had a multi-screen reach of 5mm households, which was trailing CCUR's multi-screen reach of 6.3mm households. After ERIC's deal to acquire Mediaroom closes, ERIC will have a total multi-screen reach of 16mm households for an early multi-screen market share of 25%.
If MSFT's Mediaroom is worth nearly $200mm, mainly due to its reach of 11mm households, CCUR's MediaHawk with a reach of 6.3mm households should be worth around $100mm. CCUR deserves to rise 164% to $18.88 per share!