A good comparison is with ATHM. They currently split your cable wire, connect it to a special cable modem that then attaches to your computer. They are using the cable lines to access the internet, and some are signing deals with ATHM for this.
SRCM is the only software available to connect you to the internet and others via a cable line without using the modem, and is the only software available for the set-top boxes shipping right now. ATHM inked a deal with TCI to develop software to use in set-top boxes. With SRCM owning so many patents, it should be interesting to see ATHM develop this technology, and of course we know it will take them years to do it.
Right now ATHM needs additional hardware in the home for their product. Would you use it? I wouldn't add anymore than I have to. So, SRCM is in total control of this market right now. The price may be going up in anticipation of the public's liking this product, and real good revenues coming in.
ATHM has a market cap of over $4 billion. SRCM has a meager $149 million. Before you get your underwear in a bunch, look at ATHM's fundamentals and profile. Their product has been exciting since it has been used as described before with cable splicing). SRCM will be used more now that the set-top boxes will be streaming out this spring(as we speak). ATHM won't be in that market for years if ever.
ATHM has about 50% of the revenues that SRCM has, ATHM has a ton more losses and, get this, a whopping 118 million shares outstanding. Their IPO a few quarters ago was for 10 million shares bringing the total to 118 million. I guess there is so much excitement for this field and the fact that ATHM is more recognized(check their news) has propelled their stock price to their current level and the incredible market cap. Once SRCM catches someone else's eye on wallstreet, or the set-tops become a hit, or SRCM starts inking deals with more people like InfoSpace, the sh-t will hit the fan hard!!! To be in line with expectations for ATHM, we should be trading over $300 now. Amazing huh?!!!
It will be years for ATHM to get $1.00 eps, whereas SRCM could do that any quarter now. I called TimeWarner, and they are enthusiastic about the box, obviously, and they are coming.
The stock has finally exited its speculative phase(the when and where and what if) to one of wait for the revenues to start streaming in. If the boxes are being delivered right now, the revenues are going to be there this quarter.
I got my shares of SRCM! Do you?!!!
Miller |
