BUY-Concurrent Computer Corp. (NASDAQ-CCUR)

Concurrent Computer Corp. (NASDAQ-CCUR)Valuation-$15.99
Price February 4, 2011-$5.08

With the market rise over the past year, it has been hard to find a stock that we really like lately, but this is one for sure.

CCUR is our typical “bump along” company with plenty of cash, no debt and a small burn rate. They released earnings last week, with revenues up 19% to $17.9 million. They lost $1.2 million ($.14 per share) and predicted that second half revenues would be up and gross margins would increase. They also indicated that they would continue to “invest” in the business, meaning that we shouldn’t look for any substantial earnings in the next couple of quarters.

Revenues are running just under $70 million a year, gross margins are about 53% and they have $3.82 a share in cash (75% of market cap)! There are about 8.4 million shares outstanding.

Skellig Capital Management filed a 13D in September 2010 (5.1%) telling them that their shares were undervalued and that they should institute a share buyback. We are not a fan of buybacks, but we like irritant shareholders!
Royce owns about 5.6% of CCUR and Mercury Fund owns about 5.3% and two other funds have about 12% combined.

CCUR is trading at only 32% of our valuation. If it gets to just 50% of our valuation we have a 57% gain.

Average trading volume is only about 25,000 shares a day. So careful buying is required.

About ConcurrentConcurrent is a global leader in innovative solutions that enable the seamless delivery, management and monetization of video on any screen. Built on a solid foundation of video firsts and patented, Emmy® Award winning technology, Concurrent’s screen-independent video delivery and media data solutions create a truly holistic, 360 degree view of the consumer video experience. By harnessing the full potential of video, Concurrent provides customers in the cable, telco, wireless, web, advertising and content development industries with new revenue opportunities such as advanced advertising. Concurrent’s video solutions are built upon a rich heritage of high-performance real-time technology, which also powers solutions for the defense, aerospace, automotive and financial industries

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