Thursday, January 3, 2008

Akamai (AKAM) bought

This is just to quickly note that I bought a small amount of Akamai (AKAM) stock yesterday. I have written quite a bit on Akamai (see my Akamai page). As long as I hold the stock you might want to consider a possible bias.

To sum up, Akamai has proven itself profitable these last few years. It is still growing rapidly. Its price to earnings ratio was too high for me 6 months ago, but it was quite reasonable yesterday (January 2, 2008).

I believe all the stocks in my portfolio are undervalued at this point, as are most of the stocks in U.S. stock markets. However, rather than adding to current positions, I am taking this opportunity to diversify.

The main dangers to Akamai's stock price are now competitive. It has proven that a special market - Internet content acceleration - can be very profitable. This means both bigger players (possibly Cisco, Google, or Microsoft) or a swarm of startups may try to grab this luscious pie. I am hoping that Akamai's lead in technology and customer satisfaction will allow them to fend off any near-term competition.

Akamai will be reporting its latest quarter results the end of January. As usual, I plan to listen to the analyst conference and post a summary at www.openicon.com.

You can also check out akamai's web site: www.akamai.com

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