Wednesday, February 25, 2009

AKAM Defies Gravity

While new lows are the norm for many stocks as of late, Akamai Technologies Inc. (AKAM) seems to be moving in the opposite direction.

Akamai Technologies, Inc. provides services for accelerating the delivery of content and applications over the Internet.

After a huge decline on 7/31/08 (approx. 25% loss) on ten times the average daily volume, the stock has formed a solid base at about 12 over a period of five months. Since 1/22/09 the price has been rising consistently, today reaching a new twenty week high, an anomaly in this environment.

AKAM is trading today at 18.23, up .55 and bucking the trend.

Some appealing factors for AKAM are:
  • Good volume (4.5 million avg./day)
  • Insider buying in December '08
  • Steady price rise above the 50 day moving average
  • It is one of the top companies in the sector
  • Sustained earnings estimate for '09
  • Adequate forward P/E of 10.37

I would consider AKAM at this time a good buy candidate.


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