No. of Recommendations: 1
Internet business channel companies (EBay, Yahoo, Amazon and Google) have had great runs/publicity of late......heck...seem to recall many here used the "G" word for Ebay.....it has been a "G"reat investment.

But........what about that less publicized Akamai?

A year ago, I posted a AKAM revisited here:

http://boards.fool.com/Message.asp?mid=18943405

Now with the stock up 300% since then, I wonder if we might explore the value of this company/stock in more detail.

Before any further comments, check out this great article on AKAM vs. Google:

http://www.nwfusion.com/news/2004/0419specialfocus.html?page=1

Schadler says Akamai and Google are both examples of what he calls “programmable Internet business channels.” These channels are companies that offer large infrastructure that can offer high quality services on the Internet to hundreds of millions of users at the flick of a switch. Google and Akamai are such companies, but so are Amazon.com, eBay and even Yahoo!. “They are all services that enable business activity—foundation services that [can be] scaled securely,” Schadler says.

“If I were a betting man,” Schadler adds, “I would say that Google is much more interested in serving the customer and Akamai is more interested in provide the infrastructure—it's retail versus wholesale. There will be lots and lots of these retail-oriented services.”


Check out the 2 year charts on these PIBC's:

EBAY:
http://tinyurl.com/2kq2j

Yahoo:
http://tinyurl.com/29cvf

Amazon:
http://tinyurl.com/2v93o

Akamai:
http://tinyurl.com/2rkos

Notice that most of these charts have grown by a 5 multiple over those two years.

As to AKAM, it is of interest that the chart has stair stepped upwards.....price increases followed by periods of consolidation. Even so, one would be hard pressed to suggest that from a TA perspective, AKAM's present chart is anything but neutral at best (although there is a coiling the past .

A word of warning:
Akamai reports on Wednesday so a position pre-earnings could be risky.

I am unclear who/what is a competitor to AKAM:

http://finance.yahoo.com/q/ks?s=AKAM

I suppose some may be concerned about their debt level yet many of these companies have higher debt loads related to their infrastructure build out. Perhaps that debt requirement is the barrier to entry?

What say yee on AKAM and the PIBC's in general.......are there others you might wish to bring to our attention?




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