I sold the two AKAM NOV 35 calls contracts today at $4.00. Profit of $230.
I bought two AKAM OCT 35.00 calls at $3.20.
Archive for the ‘Akamai’ Category
Trades: AKAM
Wednesday, October 10th, 2007Trades: RIO and AKAM
Tuesday, October 9th, 2007I sold 560 shares of RIO at 34.50 for a loss of 594 dollars.
I bought two NOV 35.00 AKAM call contracts at $2.80.
I am still holding 2 OCT JWN calls and 1 NOV RIMM call.
Rationale on my AKAM trade
Saturday, June 9th, 2007I initially planned on holding on to Akamai for 6 months, but I wanted to take advantage of last week’s sell-off. After I saw C trading in the mid-52s, I wanted to take advantage of the $3 run-up it had in May. Depending on how long it takes Citi to get back to mid-55s, I may trade out of Citi, and take a position again in Akamai. If Akamai can break thru resistance at 46.08-46.55, next resistance level is in the mid-48s.
I still need to a better job of coming up with my trading plan and sticking to it.
Today’s Trades: AKAM and C
Friday, June 8th, 2007I sold 475 shares of AKAM at 42.02 for a profit of $950.00.
I bought 397 shares of C at 52.80 which was trading below the 200 day moving average.
Akamai is on sale
Sunday, June 3rd, 2007On 5/30/2007, I purchased 475 shares of Akamai @ 42.00. I was initially debating whether to jump on the Citigroup “smart money” bandwagon, but Akamai looked like the better short term investment (under 6 months).
Akamai, in my eyes, would qualify as growth play with a value twist.
Trailing PE: 115.09
Forward PE: 25.51
5 PEG Ratio: 1.12
Qtrly Revenue Growth (yoy): 53.30%
Qtrly Earnings Growth (yoy): 66.80%
Insider Buying: ($1.5 mil in open market by Conrades, George)
Trading below 50 day moving average: 45.88
Named #1 of The Top 25 fastest growing techs by Business 2.0
Wide Moat:
1. Internet bottlenecks issue will take years if not decades to sort out.
2. Rich media and video is growing like crazy.
3. Companies care more than ever about Quality of Service, reliability, e-commerce.
4. No price pressure due to lack of major competitors (hardly consider Limelight a competitor; currently being sued by Akamai for patent infringement).
5. Akamai is creating alliances with major software companies and breaking in new areas of application caching (namely IBM and Adobe).