CCUR, by NIA, Lebed

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New email June 9:

NIA believes that Concurrent (CCUR)'s upside potential at last week's closing price of $7.75 per share is astronomical! Although NIA isn't an investment advisor, it is NIA's own opinion that CCUR has almost no downside risk here at $7.75 and is about to explode to new 52-week highs this week and never look back!

 

With today's extremely low interest rates, there are no bonds, CDs, or any other dollar-denominated assets that will pay a return over the next year that is anywhere close to CCUR's current dividend yield at $7.75 per share of 6.2%. NIA calculates that there are a total of 1,857 U.S. dividend paying stocks and CCUR's dividend yield is the 148th highest, putting CCUR in the top 8%! The overwhelming majority of the 147 stocks with higher dividend yields than CCUR are either banks, REITs, or trusts.

 

There is not a single U.S. technology stock in any high growth markets like multi-screen video delivery, content delivery networks (CDNs), video on demand (VOD), media data intelligence, or real-time solutions - that is paying a higher dividend yield than CCUR. To the best of NIA's knowledge, there is not a single U.S. stock in any industry that is paying a higher dividend yield than CCUR and has seen its operating income ramp up big for four straight quarters by a total of over 550%!

 

Out of the 1,857 U.S. dividend paying stocks, 50 of them (includingCCUR) are paying an annual dividend of $0.48 per share. Here is a list of these 50 companies below, in order from highest share price to lowest (or lowest dividend yield to highest).

 

List of U.S. stocks paying annual dividend of $0.48 per share:

 

Randgold Resources, Ltd. (GOLD) $77.30 per share, Dividend Yield: 0.6%
FEI Company (FEIC) $73.86 per share, Dividend Yield: 0.6%
Wolverine Worldwide (WWW) $52.55 per share, Dividend Yield: 0.9%
WSFS Financial (WSFS) $51.68 per share, Dividend Yield: 0.9%
CBS Corporation (CBS) $48.03 per share, Dividend Yield: 1%
Agilent Technologies Inc. (A) $45.15 per share, Dividend Yield: 1.1%
Cheescake Factory (CAKE) $41.46 per share, Dividend Yield: 1.2%
Imperial Oil Ltd. (IMO) $38.98 per share, Dividend Yield: 1.2%
A.O. Smith (AOS) $38.78 per share, Dividend Yield: 1.2%
First Republic Bank (FRC) $38.37 per share, Dividend Yield: 1.3%
Lincoln National Corp (LNC) $35.89 per share, Dividend Yield: 1.3%
Century Bancorp (CNBKA) $35.11 per share, Dividend Yield: 1.4%
Royal Caribbean Cruises Ltd. (RCL) $33.99 per share, Dividend Yield: 1.4%
Banner Corp (BANR) $32.94 per share, Dividend Yield: 1.5%
Inter Parfums Inc. (IPAR) $31.54 per share, Dividend Yield: 1.5%
Western Refining, Inc. (WNR) $31.27 per share, Dividend Yield: 1.5%
BlackBaud (BLKB) $30.77 per share, Dividend Yield: 1.6%
Raven Industries (RAVN) $30.49 per share, Dividend Yield: 1.6%
Federal Agricultural Mortgage Corp (AGM) $29.85 per share, Dividend Yield: 1.6%
Nexstar Broadcasting Group, Inc. (NXST) $28.52 per share, Dividend Yield: 1.7%
NRG Energy Inc. (NRG) $27.10 per share, Dividend Yield: 1.8%
Texas Roadhouse, Inc. (TXRH) $24.33 per share, Dividend Yield: 2%
Allison Transmission Holdings, Inc. (ALSN) $23.53 per share, Dividend Yield: 2%
First American Financial (FAF) $22.74 per share, Dividend Yield: 2.1%
Briggs & Stratton (BGG) $21.22 per share, Dividend Yield: 2.3%
Crosstex Energy, Inc. (XTXI) $19.44 per share, Dividend Yield: 2.5%
Evans Bancorp (EVBN) $17.74 per share, Dividend Yield: 2.7%
Staples (SPLS) $15.48 per share, Dividend Yield: 3.1%
First Community Bancshares (FCBC) $15.18 per share, Dividend Yield: 3.2%
SAIC Inc. (SAI) $14.94 per share, Dividend Yield: 3.2%
Knoll Inc. (KNL) $14.81 per share, Dividend Yield: 3.2%
Nicholas Financial, Inc. (NICK) $14.75 per share, Dividend Yield: 3.3%
Commercial Metals (CMC) $14.62 per share, Dividend Yield: 3.3%
Ocean First Financial (OCFC) $14.40 per share, Dividend Yield: 3.3%
Gazit-Globe Ltd. (GZT) $14.24 per share, Dividend Yield: 3.4%
First Pactrust Bancorp Inc. (BANC) $13.45 per share, Dividend Yield: 3.6%
Oneida Financial Corp (ONFC) $13.44 per share, Dividend Yield: 3.6%
Bank Of South Carolina Corp (BKSC) $12.74 per share, Dividend Yield: 3.8%
Telular Corp (WRLS) $12.57 per share, Dividend Yield: 3.8%
Fauquier Bankshares, Inc. (FBSS) $12.19 per share, Dividend Yield: 3.9%
F.N.B Corporation (FNB) $11.40 per share, Dividend Yield: 4.2%
BCB Bancorp (BCBP) $10.06 per share, Dividend Yield: 4.8%
World Wrestling Entertainment (WWE) $9.83 per share, Dividend Yield: 4.9%
Intersil (ISIL) $8.08 per share, Dividend Yield: 5.9%
Cresud Inc. (CRESY) $7.86 per share, Dividend Yield: 6.1%
Concurrent Computer Corporation (CCUR) $7.75 per share, Dividend Yield: 6.2%
Roundy's (RNDY) $7.48 per share, Dividend Yield: 6.4%
BGC Partners (BGCP) $5.85 per share, Dividend Yield: 8.2%
Pengrowth Energy Corp (PGH) $5.18 per share, Dividend Yield: 9.3%
Box Ships Inc (TEU) $4.08 per share, Dividend Yield: 11.8%

 

Out of the 50 U.S. stocks paying an annual dividend of $0.48 per share, 45 or 90% of them are trading at a higher share price thanCCUR! These 50 U.S. stocks paying an annual dividend of $0.48 per share finished last week at an average closing price of $24.86 per share. This means they have an average dividend yield of 1.9%.CCUR's dividend yield at $7.75 of 6.2% is 226% higher!

 

If you look at the 4 stocks paying an annual dividend of $0.48 that are priced lower than CCUR with higher dividend yields, all of them have weak fundamentals with no where near the astronomical upside potential that CCUR currently has:

 

CCUR has a HUGE cash position and NO debt, but the four lower priced stocks listed above have debt well exceeding cash. TEU has $209.57 million in debt or 8 1/2X its cash position of $24.69 million.PGH has $1.66 billion in debt or 17X its cash position of $96.51 million.BGCP has $446.5 million in debt vs. its cash position of $373.58 million. RNDY has $692.25 million in debt or 11X its cash position of $65.32 million.

 

CCUR has trailing twelve month operating cash flow of $7.13 million and after subtracting capital expenditures has trailing free cash flow of $5.6 million. With 8.754 million shares outstanding, CCUR's annual dividend of $0.48 per share will equal cash dividend payments to shareholders of $4.2 million. CCUR has a free cash flow payout ratio of 75%, which NIA considers to be perfect. CCUR is paying out the majority of its free cash flow to shareholders, which makes it an amazing opportunity for dividend seeking investors, yet CCUR still has a healthy 25% cushion so that its cash position will increase by $1.4 million annually based on its trailing twelve month free cash flow.

 

Three of the four lower priced stocks listed above aren't presently earning enough free cash flow to support their dividend payouts. PGHhas negative trailing free cash flow of ($31.118 million). BGCP's annual dividend payouts of $168.824 million exceed their annual free cash flow of $117.73 million by $51.094 million (for an unhealthy free cash flow payout ratio of 143%). RNDY has negative trailing free cash flow of ($1.556 million).

 

NIA believes that CCUR deserves to be trading today with a very minimum enterprise value of 15X its free cash flow of $5.6 million, which would give CCUR an enterprise value of $84 million, for a market cap of $106.37 million and share price of $12.15. On a more aggressive basis, CCUR in NIA's opinion deserves an enterprise value of 20X its free cash flow of $5.6 million, which would give CCUR an enterprise value of $112 million, for a market cap of $134.37 million and share price of $15.35!

 

If not for CCUR's $8 resistance in recent months, NIA believes CCURwould already be trading in the $12-$15 per share range today. Investors who pay $8 for CCUR will be earning a HUGE dividend yield of 6%, so NIA is sure that CCUR is about to soar past $8 on Monday and never look back. NIA believes there are many investors following closely from the sidelines waiting for CCUR to convincingly break $8 before they begin accumulating, so when CCUR breaks $8 it could very quickly fly past its 52-week high of $8.45 and reach $9 within hours - followed by a major breakout into double digits in the following days!

 

NIA is not an investment advisor and is not making any target prices or financial projections. Never invest based on anything NIA says. Always do your own research and make your own investment decisions. NIA never recommends to buy or sell any stock.

 

Disclaimer: NIA currently owns 250,093 shares of CCUR. NIA intends to sell its CCUR shares in the future and can do so anytime. NIA reserves the right to add to its CCUR position at any time.

 

NIA is not an investment advisor. This email is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This email is meant for informational and educational purposes only and does not provide investment advice.