Concurrent (CCUR) reached a new 52-week high yesterday of $8.61 and convincingly broke through the resistance that held it down at extremely undervalued artificially low valuations for the past six months! We have been saying for months that if not for recent resistance the stock would already be trading for double digits. We said that after CCUR finally breaks through resistance at $8, investors will be convinced that all of the sellers are completely gone and CCUR will rapidly rise into double digits and explode.
CCUR now has both the strongest fundamentals and technicals in the market! At yesterday's closing price of $8.40, CCUR has a market cap of only $73.53 million with $22.37 million in cash and an enterprise value of $51.16 million or 0.81X trailing revenues of $63.23 million and 9.14X free cash flow of $5.6 million! CCUR has a trailing gross margin of 58.2% and a trailing operating margin of 4.28%!
CCUR's top rival Seachange (SEAC) closed today at $11.94 per share with a market cap of $391 million, cash of $114.23 million, and an enterprise value of $276.77 million or 1.77X trailing revenues of $156.11 million and 20.38X free cash flow of $13.58 million! SEAC has a trailing gross margin of 51.8% and a trailing operating margin of negative (2.67%)!
CCUR's other rival Harmonic (HLIT) closed today at $7.55 per share with a market cap of $762.55 million, cash of $161.7 million, and an enterprise value of $600.85 million or 1.23X trailing revenues of $489.91 million and 12.78X free cash flow of $47.02 million! HLIT has a trailing gross margin of 45.4% and a trailing operating margin of negative (3.63%)!
CCUR's trailing gross margin is 12% higher than SEAC's gross margin and 28% higher than HLIT's gross margin! CCUR's trailing operating margin is positive and rapidly improving, reaching 7.28% in the 3Q up from its average over the past year of 4.28%! SEAC and HLIT both have negative trailing operating margins that are worsening!
SEAC and HLIT have an average enterprise value/revenue ratio of 1.50, which would value CCUR at $13.39 per share. However, CCUR truly deserves a higher enterprise value/revenue ratio than both companies and could easily reach an enterprise value/revenue ratio of 2 after its 10-K filing next month, which would value CCUR at $17 per share! CCUR needs to reach $9.78 per share just to trade at an enterprise value/revenue ratio of 1, and we are confident it get there in the very near future, in our opinion.
CCUR just surpassed its 52-week high from February 6th of $8.45 and is now ready to explode in the weeks ahead, with CCUR possibly set to make the #1 largest gains on the NASDAQ for the month of August. Each of CCUR's many dips in recent months to higher lows after each unsuccessful attempt at breaking through $8.45, allowed practically every single weak hand to exit CCUR. Only strong shareholders own CCUR today and many of the investors who got frustrated and sold in recent months, are about to rush back in! The breakout to justified levels of where CCUR should be trading compared to competitors is here and the time for traders to get involved is now or never. Don't sit back and miss all the hard work and due diligence put into this investment for several months. Do your research NOW!
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