Akamai – Their CACHE is also green

This has been one of my most written about trend stocks in my blog. Here is an excerpt from a post I wrote on March 26:

Cache is king – and the Motley Fools

In the real world, cash is king. In the internet world, CACHE as in CACHEING is king.

Inktomi was probably a great deal for Yahoo if Akamai’s price is for real.

I first bought Akamai at $15 after looking deeper into the Apple story and iTunes in particular. It seemed simple enough – their cacheing software sped up the net. Today I am also hungry for ideas that will speed the move to voice recognition and solve language barriers – but I digress.

I further read the good research on the Motley Fool. I mean I loved Apple at the time (2 years ago already). The Motley Fool “rules” – that price does not matter for “Rule Breakers” and that community is valuable – have been fanatstic for them. Of course, they have had some serious flameouts as well – but that goes with the territory they are writing about.

I have no idea what AKAMAI is worth, but the customer list is growing and until Apple changes partners, this little baby still has legs. Video only increase the importance for now.

This may be a little different than the hardware component makers like Sigmatel, Synaptics and Portal Player where margin compression and vendor changes fluctuate daily. The hardware component stcoks have great runs and than get cut in half. This happened to me in Synaptics – the cool iPod click wheel supplier.

Today Akamai trades at $50. I have sold down my position, but am sill riding this trend. I have no idea who will kick them off their perch and their stock acts like nobody is close. It has been pretty smooth sailing the last 12 months. I traded some around one of their dips.

Disclosure – Ling Akamai – not buying more