Aug 1, 2006 -
The stock rose
strongly and on high volume in response to earnings... It also broke out of an
ascending triangle pattern...
Akamai
Technologies, Inc. (AKAM) provides services for the delivery of content and
business processes over the internet.
Key
Information:
Fundamental:
Sector:
Technology
Industry:
Internet Software & Services
Liquidity:
Market
Capitalization: $6.14 billion
Average daily
volume (3-month): 4.2 million shares
Closing Stock
Price: $39.63
Risk Proxies:
52-week high /
52-week low: 3.00
Beta
(3-month): 3.34
Debt/Equity:
0.288
Profitable:
Yes
Note:
This stock is risky! If you choose to trade it, please use appropriate
position sizing.
Valuation:
Price/Sales:
17.56
Price/Book:
8.85
Price/Earnings:
20.84
Price/2008
Analyst Earnings Estimates: 38.85
Forecast
Horizon: 1 month
Technical
Analysis
We are
technically bullish on AKAM:
- The stock rose strongly and on high volume following
an earnings announcement (see Signal and Prtamani, 2001)
- The stock broke out of an ascending triangle pattern
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Reference
Pritamani, Mahesh, and Vijay Singal, "Return predictability
following large price changes and information releases" Journal of Banking
and Finance, April 2001, 25(4), pp.631-656.
Key
Levels
Buy:
Market
We are
technically bullish on the stock
Stop Loss:
36.44
Slightly below
the highs of the ascending triangle pattern
Target:
The sooner of 46.99, or a 1-month hold
46.99 is
slightly below the technical target of the ascending triangle ( = C-B+A). One month
is the time over which the technical formations we have identified have
predictive power
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