Though we currently remain wary of initiating new long positions given the long market rally, Concurrent Computer Corp (Nasdaq: CCUR current price: $5.60, recommended price: $3.75) remains our favorite idea from the three long picks recommended to members, back in February 2009. We continue to believe that, at current prices, the stock still offers an excellent risk/reward opportunity.

CCUR products consist of hardware and/or software as well as integration services, sold primarily to broadband companies that provide interactive, digital services for the delivery of video. The company is basically operating in the high-growth and exciting market of Video On-Demand (VOD). From the company’s website:

“Concurrent’s on-demand technology is shaping the future of video. As a leading provider of open, commercial-grade video solutions, Concurrent enables service providers to deliver the next-generation of rich, reliable and personalized video applications to any device, anytime, over any network.”

Like many of the stocks we invest in, CCUR has been an abysmal performer over the years, until quite recently. What caught our attention, as in other recent recommendations, was the strong balance sheet (cash at 50% of market cap, and no debt), and solid cash-flow, despite large one-time accounting losses. Additionally, financial results, as measured by the top and bottom line, are improving, and the valuation remains quite depressed with an EV/TTM Revenue at a measly 0.3X and an EV/TTM EBITDA of about 3.5. Cap-ex needs at the company are minimal.

If the company continues to deliver strong financial results, and announces additional high profile partnerships, we believe more investors will discover the stock, especially considering the company’s active role in the VOD market.

Disclosure: Affiliates of Envoy Global Research, and its principals, own shares in CCUR. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.