06-30-2013, 06:22 AM
And Jun 29, Lebed again, making a good case for the overvaluation of WWE 
A few months ago I was lucky enough to be invited to Wrestlemania to see the Rock defend his WWE championship. I never thought I would compareConcurrent (CCUR) to WWE to prove how undervalued CCUR is... butCCUR will be double digits any day now if you smell what the Rock is cooking!
Unbelievably, CCUR and WWE both pay the exact same annual dividend of $0.48 per share! While CCUR closed yesterday at $7.57 and has a HUGE dividend yield of 6.34%, WWE is up today to $10.29 and currently has a lower yield of 4.66%! Take advantage of CCUR here because it will be trading above WWE very soon!
CCUR has free cash flow of $5.6 million and its annual dividend cost of $4.2 million equals a free cash flow payout percentage of only 75%, meaning CCUR's cash position will still increase by $1.4 million annually even with its HUGE dividend yield of 6.34%!
WWE on the other hand may have operating cash flow of $24.69 million, but WWE also has capital expenditures of $25.518 million to pay for wrestling rings, tables, ladders, chairs, championship belts, etc. Therefore,WWE has negative free cash flow of $828,000 and combined with its annual dividend expenditure of $35.91 million, WWE's cash position is set to decline by $36.74 million per year! WWE only has $132.25 million in cash left on its balance sheet so the way it's going, Vince will run out of corporate cash within 4 years!
CCUR dividend yield is not only a lot higher than WWE, but CCUR can easily afford it while WWE can't afford their dividend!
-----
I am affiliated with a firm that owns 235,093 shares of CCUR that they intend to sell in the open market and can sell at any time. This firm reserves the right to add to its CCUR position at any time. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: http://lebed.biz/disclaimer.