24/7 Wall St. » AKAM

After Taleo, Looking at Other Cloud M&A ‘Hopefuls’ (SKYY, TLEO, ORCL, EQIX, AKAM, RAX, TDC, NTAP, CRM)

Administrator — Thu, 09 Feb 2012 16:03:57 +0000

It is a bit surprising that First Trust ISE Cloud Computing (NASDAQ: SKYY) is not trading higher than it is after a ‘cloud acquisition’ even if it is a thinly traded ETF compared to other technology funds. After the Taleo Corporation (NASDAQ: TLEO) acquisition by Oracle Corporation (NASDAQ: ORCL) and with the market still holding gains, it would seem likely that investors and speculators would say “more cloud mergers and buyouts are coming this way.”

What is interesting is that Taleo was not even part of this cloud ETF, and many of the ETFs components are not exactly all cloud space players. Is it fair to lump in all cloud players as targets when one is software and one is hardware? Be advised, there are some stocks which have had buyout rumors in the past listed below but there are no current rumors we have heard.

Here is the weighting of the cloud ETF’s more cloud-centric companies, with the most recent weightings and some commentary on some of the names:

Equinix, Inc. (NASDAQ: EQIX) 3.80%…probably too expensive to acquire now on valuation metrics and with a $6.1 billion market cap.

Akamai Technologies, Inc. (NASDAQ:: AKAM) 3.72%… surged after earnings, now unlikely to be bought on the cheap by would be acquirers.

Rackspace Hosting, Inc. (NYSE: RAX) 3.39%… has been called a buyout candidate before but the company’s line is that it wants to remain independent.

Teradata Corporation (NYSE: TDC) 3.35%… still considered a special situation by some investors but no buyout rumors have proven true, and shares are up big after earnings.

NetApp, Inc. (NASDAQ: NTAP) 3.22%… “The one that got away.” This used to be a buyout dream stock, but valuation got in the way. Now at over $14 billion the time may have come and gone.

Salesforce.com, Inc. (NYSE: CRM) 3.08%… way too expensive to acquire on a valuation basis. Cloud is everywhere here in effect as a great benefit, but this one is diversified into CRM and SaaS.

Where this gets interesting is that Taleo is a human resources software maker and perhaps not just cloud software as some of the media headlines would have suggested. The 18% premium also suggests that paying up for the cloud players is only a limited value.

Just because one buyer buys a loose cloud play in software does not translate to buyouts in hardware.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Mergers and Buy Outs, Rumors, Software Tagged: AKAM, CRM, EQIX, NTAP, ORCL, RAX, SKYY, TDC, TLEO

24/7 Wall St. Closing Bell (YUM, DMD, NLY, MS, UBS, AGU, CVS, RL, RAI, TWX, DIS, WYN, BWLD, CSCO, CZR, FFN, TNK, AKAM, NURO)

Paul Ausick — Wed, 08 Feb 2012 21:06:49 +0000

The US equity markets opened slightly higher this morning, but soon turned around and spent the rest of the morning lower before returning to about even by afternoon. Equities could close at or near where they opened today. The lack of a decision on the Greek debt swap deal is leading investors to exercise caution both in Europe and the US. If the new Greek deal is anything like the last dozen or so, it will send markets up as soon as it is announced; and once people have a chance to read the details, markets will turn south again. Crude is higher today, with WTI up 0.51% at $98.91/barrel and Brent up 1.24% at $117.67/barrel. Gold closed down -0.73% at $1,735.60/ounce.

The unofficial closing bells put the DJIA up about 6 points to 12,883.95 (0.04%), the NASDAQ rose nearly 12 points (0.41%) to 2,915.86, and the S&P 500 rose 0.22% or about 3 points to 1,349.97.

There were several analyst upgrades and downgrades today, including Yum! Brands Inc. (NYSE: YUM) cut to ‘neutral’ at Goldman Sachs; Demand Media Inc. (NYSE: DMD) cut to ‘underweight’ at Morgan Stanley; Annaly Capital Management Inc. (NYSE: NLY) cut to ‘market perform’ at FBR; Morgan Stanley (NYSE: MS) cut to ‘hold’ at Collins Stewart; and UBS AG (NYSE: UBS) cut to ‘sell’ at Deutsche Bank.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Agrium Inc. (NYSE: AGU) is up 2.16% at $82.95; CVS Caremark Corp. (NYSE: CVS) is up 1.18% at $43.59 after posting a new 52-week high of $44.08 earlier in the day; Ralph Lauren Corp. (NYSE: RL) is up 9.8% at $172.50 after posting a new 52-week high of $178.47 earlier today; Reynolds American Inc. (NYSE: RAI) is down -1.35% at $39.57; Time Warner Inc. (NYSE: TWX) is up 0.3% at $38.21 after posting a new 52-week high of $39.23 earlier today; Walt Disney Co. (NYSE: DIS) is up 0.95 at $41.34; Wyndham Worldwide Corp. (NYSE: WYN) is up 5.6% at $43.22 after posting a new 52-week high of $43.36 earlier today; and Buffalo Wild Wings Inc. (NASDAQ: BWLD) is up nearly 17% at $82.04 after posting a new 52-week high of $82.45 earlier today.

Our preview of tomorrow’s earnings releases is here. Also see our coverage of earnings for Cisco Systems Inc. (NASDAQ: CSCO) due after markets close today

Other standouts from today include the following stocks:

Ceasars Entertainment Corp. (NASDAQ: CZR) is up more than 70% at $15.32. The casino owner completed its IPO today, with 1.8 million shares going out at $9/share. We have some issues with this IPO.

FriendFinder Networks Inc. (NASDAQ: FFN) is up nearly 33% at $1.95. The adult dating site had no news today, so this must just be more halo effect from Facebook — or something else.

Teekay Tankers Ltd. (NYSE: TNK) is down more than -12% today at $3.98. The shipping company this morning priced a secondary stock offering of 15 million shares at $4/share.

Akamai Technologies Inc. (NASDAQ: AKAM) is up about 2% at $34.33. The internet company acquired a Canadian company today, and reports earnings after markets close today. We have more coverage here.

NeuroMetrix Inc. (NASDAQ: NURO) is down more than -17% at $0.95 after posting a new 52-week low of $0.94 earlier today. The medical device maker priced a secondary offering of 10.5 million shares at $1/share this morning.

Stay tuned for Thursday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – New unemployment benefits claims
10:00 a.m. – Wholesale trade report
10:30 a.m. – EIA weekly natural gas storage report
1:00 p.m. – Treasury 30-year bond auction
4:30 p.m. – Federal Reserve balance sheet and money supply

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: AGU, AKAM, BWLD, CSCO, CVS, CZR, DIS, DMD, FFN, MS, NLY, NURO, RAI, RL, TNK, TWX, UBS, WYN, YUM

Top Earnings Previews For Wednesday (AKAM, CSCO, CSC, ENB, GRPN, IM, ICE, LVLT, MCO, NWSA, PNG, PAA, PRU, RL, RAI, S, TWX, VICL, V, WFM)

Administrator — Tue, 07 Feb 2012 18:30:51 +0000

We are entering into the last waves of the normalized quarterly earnings reports for companies with December 31 quarter-end dates, and we are entering the first waves of the earnings reports from companies with off-normal quarter-ends. Wednesday is going to be another busy day with many earnings.

The earnings previews are for the following: Akamai Technologies, Inc. (NASDAQ: AKAM); Atmel Corporation (NASDAQ: ATML); Cisco Systems Inc. (NASDAQ: CSCO); Computer Sciences Corporation (NYSE: CSC); Enbridge Inc. (NYSE: ENB); Groupon Inc. (NASDAQ: GRPN); Ingram Micro Inc. (NYSE: IM); IntercontinentalExchange Inc. (NYSE: ICE); Level 3 Communications Inc. (NASDAQ: LVLT); Moody’s Corporation (NYSE: MCO); News Corp. (NASDAQ: NWSA); PAA Natural Gas Storage L.P. (NYSE: PNG); Plains All American Pipeline L.P. (NYSE: PAA); Prudential Financial Inc. (NYSE: PRU); Ralph Lauren Corporation (NYSE: RL); Reynolds American Inc. (NYSE: RAI); Sprint Nextel Corporation (NYSE: S); Time Warner Inc. (NYSE: TWX); Vical Inc. (NASDAQ: VICL); Visa Inc. (NYSE: V); and Whole Foods Market Inc. (NASDAQ: WFM).

We have compiled earnings preview on each company using Thomson Reuters consensus estimates and added color on each if applicable. Some are market moving, some are sector moving, and some are just interesting for traders to watch around the earnings reports.

Akamai Technologies, Inc. (NASDAQ: AKAM) has estimates of $0.40 EPS and $311.26 million in revenues.

Atmel Corporation (NASDAQ: ATML) has estimates of $0.09 EPS and $401.5 million in revenues. Growth is gone, but it still screens as value.

Cisco Systems Inc. (NASDAQ: CSCO) has estimates of $0.43 EPS and $11.23 billion in revenues. Preliminary preview notes are available.

Computer Sciences Corporation (NYSE: CSC) has estimates of $0.58 EPS and $3.98 billion in revenues. As a reminder, CSC has warned on earnings. This one shows up as a value stock in all sorts of investor screens but it is a value trap.

Filed under: 24/7 Wall St. Wire, Calendar, Earnings Tagged: AKAM, CSC, CSCO, ENB, GRPN, ICE, IM, LVLT, MCO, NWSA, PAA, PNG, PRU, RAI, RL, S, TWX, V, VICL, WFM

24/7 Wall St. Closing Bell (COST, XOM, AKAM, P, SCCO, MRK, AYI, CBST, AA, INHX, PSOF, IDIX, NFLX, THRX, LTRX)

Paul Ausick — Mon, 09 Jan 2012 21:07:28 +0000

US markets opened up slightly this morning and have maintained a slight positive tone for most of the day. Today marks the unofficial beginning of another earnings season, with Alcoa kicking things off after markets close today. There was little substantive news out of Europe other than France and Germany have agreed to propose financial transaction tax which has no chance of being enacted. European markets were mixed today as were Asian markets. Crude oil is lower today, with WTI down -0.3% at $101.26/barrel and Brent down -0.84% at $112.11/barrel. Gold is also down less than half a point, at $1,609.80.

The unofficial closing bells put the DJIA up nearly 33 points to 12,392.54 (0.26%), the NASDAQ rose more than 2 points (0.09%) to 2,676.56, and the S&P 500 rose 0.23% or nearly 3 points to 1,280.70.

There were several analyst upgrades and downgrades today, including Costco Wholesale Corp. (NASDAQ: COST) cut to ‘underperform’ at Bernstein; Exxon Mobil Corp. (NYSE: XOM) reiterated as ‘buy’ at Goldman Sachs; Akamai Technologies Inc. (NASDAQ: AKAM) cut to ‘sell’ from ‘neutral’ at Citigroup; Pandora Media Inc. (NYSE: P) started as ‘buy’ at Needham; Southern Copper Co. (NYSE: SCCO) cut to ‘hold’ at Deutsche Bank; and Merck & Co. Inc. (NYSE: MRK) downgraded to ‘hold’ at Jefferies.

Earnings reports of note since markets closed Friday include: Acuity Brands Inc. (NYSE: AYI) is up nearly 9% at $54.79; and Cubist Pharmaceuticals Inc. (NASDAQ: CBST) is down -0.55% at $39.95. After markets close today bellwether Alcoa Inc. (NYSE: AA) is expected to report an EPS loss of -$0.02.

Other standouts from today include the following stocks:

Inhibitex Inc. (NASDAQ: INHX) is up more than 140% at $23.70 after posting a new 52-week high of $24.08 earlier today. The drug company has agreed to be acquired by Bristol Myers Squibb (NYSE: BMY) for $2.5 billion ($26/share in cash).

Pansoft Co. Ltd. (NASDAQ: PSOF) is up nearly 56% at $3.13. The Chinese enterprise software company received a buyout offer from Timesway Group Ltd, which is controlled by Pansoft’s chairman, for $3.76/share for the shares Timesway does not already own.

Idenix Pharmaceuticals Inc. (NASDAQ: IDIX) is up more than 36% at $9.59 after posting a new 52-week high of $10.39 earlier today. The drug maker’s hepatitis C drug got a postive report on an interim drug trial, the same categoy of drug made by Inhibitex. More coverage here.

Netflix Inc. (NASDAQ: NFLX) is up more than 14% at $98.62. The video rental and streaming company launched its streaming service in the UK and Ireland today. We have more coverage here.

Theravance Inc. (NASDAQ: THRX) is down more than -19% at $16.27. The biopharmaceutical firm reported that a new drug to treat asthma and other pulmonary diseases performed no better than an existing drug in a clinical trial.

Lantronix Inc. (NASDAQ: LTRX) is up more than 28% at $2.95. The networking products maker launched new wireless printing products aimed at devices that use the iOS operating system software from Apple Inc. (NASDAQ: AAPL).

Stay tuned for Tuesday. San Francisco Fed President John Williams and Kansas City Fed President Esther George are giving speeches. Here are the noteworthy events on the schedule (all times Eastern):

7:30 a.m. – NFIB small business optimism index
11:30 a.m. – 4- and 52-week Treasury bill auctions
1:00 p.m. – 3-year Treasury note auction

Paul Ausick

Filed under: HI/LOW, Market Close, The Day Tagged: AA, AKAM, AYI, CBST, COST, IDIX, INHX, LTRX, MRK, NFLX, P, PSOF, SCCO, THRX, XOM

Top Analyst Upgrades & Downgrades (AKAM, GAS, AAPL, ARMH, B, COST, XOM, FR, HTH, IART, IGT, MRK, P, PENN, PVH, RBS, SCCO, THOR)

Administrator — Mon, 09 Jan 2012 13:09:46 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Monday morning.

Akamai Technologies, Inc. (NASDAQ: AKAM) Cut to Sell from Neutral at Citigroup.
AGL Resources Inc. (NYSE: GAS) Started as Underperform and named as Bear of the Day at Zacks.
Apple Inc. (NASDAQ: AAPL) Reiterated Buy with $460.00 price target objective by Argus; maintained Conviction Buy List and target raised to $550 from $520 at Goldman Sachs.
ARM Holdings PLC (NASDAQ: ARMH) Started as Underperform at Bernstein.
Barnes Group Inc. (NYSE: B) named as value stock of the day at Zacks.
Costco Wholesale Corporation (NASDAQ: COST) Cut to Underperform at Bernstein.
Exxon Mobil Corporation (NYSE: XOM) Reiterated Buy at Goldman Sachs.
First Industrial Realty Trust (NYSE: FR) Cut to Neutral at Credit Suisse.
Hilltop Holdings, Inc. (NYSE: HTH) Raised to Outperform as Bull of the Day at Zacks.
Integra LifeSciences Holdings Corp. (NASDAQ: IART) Cut to Hold at Argus.
International Game Technology (NYSE: IGT) Removed from US Focus List at Credit Suisse.
Merck & Co. Inc. (NYSE: MRK) Downgraded to Hold at Jefferies.
Pandora Media Inc. (NYSE: P) Started as Buy at Needham.
Penn National Gaming Inc. (NASDAQ: PENN) Added to the US Focus List at Credit Suisse.
PVH Corporation (NYSE: PVH) Started as Buy at Stern Agee.
The Royal Bank of Scotland Group plc (NYSE: RBS) Raised to Neutral at JPMorgan.
Southern Copper Corporation (NYSE: SCCO) Cut to Hold at Deutsche Bank.
Thoratec Corporation (NASDAQ: THOR) Cut to Market Perform at Wells Fargo.

If you enjoyed the top analyst upgrades and downgrades, you can sign up in the box below to join our morning email list to receive news directly in your inbox each morning. We also include additional research notes, special situation developments, observations on Warren Buffett and key market gurus, as well as special exclusive feature stories.

JON C. OGG

Filed under: Analyst Calls Tagged: AAPL, AKAM, ARMH, B, COST, FR, gas, HTH, IART, IGT, MRK, P, PENN, PVH, RBS, SCCO, THOR, XOM

24/7 Wall St. Closing Bell (AAPL, GGP, UA, PLD, AKAM, WSM, PRGS, OSH, AVEO, KIOR, ASM, AONE, ARL)

Paul Ausick — Tue, 03 Jan 2012 21:09:36 +0000

US stock markets rallied on the first morning of trading in the new year. Index futures were up sharply and trading zoomed past the mark to rise more than 2%. Strong manufacturing data from Asia gave US markets a nice boost, as did a better-than-expected report on the ISM index and a rise in US construction spending. The S&P 500 could not overcome a technical barrier, causing the market to move mostly sideways in the afternoon. Crude oil rose steeply on a weaker dollar and on the better economic news. WTI crude is up more than 4% at $103.00/barrel and Brent crude is up 4.76% at $112.14. Gold is also stronger today, up about 2.5%, at $1,605.80.

The unofficial closing bells put the DJIA up nearly 180 points to 12.397.46 (1.47%), the NASDAQ rose more than 43 points (1.67%) to 2,648.72, and the S&P 500 rose 1.55% or more than 19 points to 1,277.05.

There were several analyst upgrades and downgrades today, including Apple Inc. (NASDAQ: AAPL) had its target price lowered to $513 at Morgan Keegan; General Growth Properties Inc. (NYSE: GGP) cut from ‘outperform’ to ‘neutral’ at Credit Suisse; Under Armour Inc. (NYSE: UA) raised to ‘outperform’ with a target price of $90 at Baird; Prologis Inc. (NYSE: PLD) started as ‘outperform’ at Wells Fargo; Akamai Technologies Inc. (NASDAQ: AKAM) cut from ‘buy’ to ‘neutral’ at Janney Capital Markets; and Williams-Sonoma Inc. (NYSE: WSM) cut to ‘sell’ at Janney.

There were no earnings reports of note scheduled today. Progress Software Corp. (NASDAQ: PRGS) is scheduled to report earnings at 4:30 p.m. today.

Orchard Supply Hardware Stores Corp. (NASDAQ: OSH) completed an IPO today. Shares were initially priced at $25 and rose as high as $60 during the day before settling to $27.05, up more than 8% with less than half an hour of trading time left.

Other standouts from today include the following stocks:

Aveo Pharmaceuticals Inc. (NASDAQ: AVEO) is down more than -19% at $13.90. The pharmaceutical maker reported that its liver cancer drug performed better than a competitor in late-stage trials, but investors were expecting a larger improvement.

Kior Corp. (NASDAQ: KIOR) is down more than -10% at $9.12. The alternative fuel maker had no news, but is likely getting bashed on the expiration of US ethanol subsidies.

Avino Silver & Gold Mines Ltd. (AMEX: ASM) is up nearly 17% at $1.66. The junior miner is riding the coattails of an overall upsurge in materials stocks today, which have been leading the markets higher all day.

A123 Systems Inc. (NASDAQ: AONE) is up more than 24% at $2.00. The battery maker is a partner with Satcon Technology Corp. (NASDAQ: SATC) in a demonstration project on micro-grid energy storage for the US Department of Defense.

American Realty Investors Inc. (NYSE: ARL) is up more than 12% at $2.10. The real estate investment company has no news, but continues to rise on upbeat news about the housing market.

Stay tuned for Wednesday. Automakers are scheduled to release sales data throughout the day. US seasonally adjusted annual sales are expected to remain at 13.6 million cars and light trucks. Here are the noteworthy events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
10:00 a.m. – Factory orders report for November (consensus estimate for gain of 2%)
11:30 a.m. – 4-week Treasury bill auction

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AAPL, AKAM, AONE, ARL, ASM, AVEO, GGP, KIOR, OSH, PLD, PRGS, UA, WSM

Top Analyst Upgrades & Downgrades (AKAM, ANGI, AAPL, CBE, FIO, GGP, GES, PETD, PMCS, PLD, REG, RS, UA, PANL, VTR, WSM)

Administrator — Tue, 03 Jan 2012 13:20:51 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Tuesday morning.

Akamai Technologies, Inc. (NASDAQ: AKAM) Cut to Neutral from Buy at Janney Capital Markets.
Angie’s List, Inc. (NASDAQ: ANGI) Started as Buy at Stifel Nicolaus; Started as Perform at Oppenheimer; Started as Buy at Janney Capital Markets.
Apple Inc. (NASDAQ: AAPL) lowered price target to $513 from $530 at Morgan Keegan.
Cooper Industries plc (NYSE: CBE) Cut to Neutral from Outperform at Credit Suisse.
Fusion-io, Inc. (NYSE: FIO) Raised to Overweight at Morgan Stanley.
General Growth Properties Inc. (NYSE: GGP) Cut to Neutral from Outperform at Credit Suisse.
Guess?, Inc. (NYSE: GES) Cut to Underperform from Neutral as Bear of the Day at Zacks Investment Research.
Petroleum Development Corporation (NASDAQ: PETD) Cut to Hold at Canaccord Genuity.
PMC-Sierra Inc. (NASDAQ: PMCS) Cut to Neutral with $6 target at Goldman Sachs.
Prologis, Inc. (NYSE: PLD) Started as Outperform at Wells Fargo.
Regency Centers Corporation (NYSE: REG) Cut to Neutral from Outperform at Credit Suisse.
Reliance Steel & Aluminum Company (NYSE: RS) named as value stock of the day at Zacks Investment Research.
Under Armour, Inc. (NYSE: UA) Raised to Outperform with $90 target at Baird.
Universal Display Corporation (NASDAQ: PANL) maintained Hold and lowered estimates and target to $35 at Canaccord Genuity.
Ventas, Inc. (NYSE: VTR) Raised to Long-Term Outperform and named as the Bull of the Day at Zacks Investment Research.
Williams-Sonoma Inc. (NYSE: WSM) Cut to Sell at Janney Capital Markets.

JON C. OGG

Filed under: Analyst Calls Tagged: AAPL, AKAM, ANGI, CBE, FIO, GES, GGP, PANL, PETD, PLD, PMCS, REG, RS, UA, VTR, WSM

Morning Movers (RAM, WCAA, AKAM, AM, ABIO, VVUS)

Paul Ausick — Thu, 22 Dec 2011 15:19:13 +0000

There are several stocks trading more heavily than usual this morning, and also experiencing large gains or drops in share prices. These include RAM Energy Resources Inc. (NASDAQ: RAM), WCA Waste Corp. (NASDAQ: WCAA), Akamai Technologies Inc. (NASDAQ: AKAM), American Greetings Corp. (NYSE: AM), ARCA biopharma Inc. (NASDAQ: ABIO), and Vivus Inc. (NASDAQ: VVUS).

After the first half hour of trading this morning, RAM Energy is up nearly 57% at $1.73 Volume is approaching 2 million shares. The independent oil & gas company has today relisted on the NASDAQ and has also announced a $550 million investment from a private equity firm headed by the former chairman and CEO of Petrohawk.

WCA is up nearly 30% at $6.38, after posting a new 52-week high of $6.43. Volume is already more than 40x the daily average. The non-hazardous waste processor has approved a cash buyout offer for $526 million ($6.50/share) from a private investment fund.

Akamai is up more than 15% at $30.75. Volume is already about 75% of the daily average. The internet technology company has agreed to acquire cloud-based software company Cotendo for $268 million in cash.

American Greetings is down nearly -20% at $13.63 after posting a new 52-week low of $13.06. Volume is already more than double the daily average. The greeting card company missed earnings estimates this morning.

ARCA biopharma is down nearly -23% at $1.04 after posting a new 52-week low of $0.79. Volume is already about double the daily average. The biopharmaceutical firm announced a private placement of $1.75 million in stock and warrants.

Vivus is down more than -15% at $8.80. Volume is already nearly double the daily average. The biopharmaceutical firm announced that its weight-loss drug Qnexa led to a higher rate of birth defects in children whose mothers were taking the drug during pregnancy.

Also Read: Top Ten Analyst Upgrades & Downgrades

Paul Ausick

Filed under: HI/LOW, Market Open, Most Actives Tagged: ABIO, AKAM, AM, RAM, VVUS, WCAA

Akamai: Moving From Buyout Bait Back To Resurrection (AKAM, YHOO, GOOG)

Administrator — Thu, 27 Oct 2011 14:47:05 +0000

Akamai Technologies, Inc. (NASDAQ: AKAM) is flying high this morning. The content acceleration company reported earnings last night that beat expectations and the company is taking a more focused look at management. We cannot help but to think that the move here now may be a shift away from Akamai as buyout bait to Akamai as a turnaround.

The news is that net income rose to $42.3 million from $39.7 million and comparable earnings that analysts use came in at $0.34 EPS as revenue rose more than 10% to $281.9 million. Thomson Reuters had estimates of $0.33 EPS and $278.87 million in sales.

For the current quarter we are already in, Akamai said revenue should come in between $303 and $315 million versus the Thomson Reuters estimate of $310.53 million. Sales in the Q4-2010 period were $$284.7 million.

Another bit of news is that David Kenny stepped down as President after only about a year and CEO Paul Sagan has been given the additional role of president (again). The rumor is that David Kenny is a possible Yahoo! Inc. (NASDAQ: YHOO) CEO candidate.

The takeaway is simple. Akamai is constantly thrown around as a takeover candidate and the rumor mill has always been active there. The rumored acquirer most recently was Google Inc. (NASDAQ: GOOG) but that was effectively denied or rejected. We always thought that getting a high-premium buyout takes away the value and there are still too many buried shareholders who remember much higher share prices that would vote against a low-premium merger.

Now is the time to consider whether or not Akamai is turning itself around. Shares closed at $23.78 yesterday and the 52-week range is $18.25 to $54.65. Yep, shares had been cut in half… and then some.

Akamai shares are flying higher with gains of over 14.5% at $27.25 this morning after about 75 minutes of trading.

JON C. OGG

Filed under: Rumors, Technology Companies, Turnarounds Tagged: AKAM, GOOG, YHOO

Top Active Trader Alert Stocks (AGNC, AKAM, APKT, CSCO, ORCL)

Mike Sauter — Thu, 27 Oct 2011 12:59:38 +0000

Active traders and day traders have many stocks to choose from this Thursday morning. We are tracking news and moves in shares of American Capital Agency Corp (NASDAQ: AGNC), Akamai Technologies, Inc. (NASDAQ: AKAM), Acme Packet, Inc. (NASDAQ: APKT), Cisco Systems, Inc. (NASDAQ: CSCO), and Oracle Corporation (NASDAQ: ORCL).

American Capital Agency Corp (NASDAQ: AGNC) is down 3.73% before market open to $27.58, relative to a 52-week range of $22.03 – $30.76.

Akamai Technologies, Inc. (NASDAQ: AKAM) is up 13.9% before market open to $27.05, relative to a 52-week range of $24.72 – $36.50.

Acme Packet, Inc. (NASDAQ: APKT) is up nearly 9% before market open to $32.20, relative to a 52-week range of $29.25 – $84.50.

Cisco Systems, Inc. (NASDAQ: CSCO) is up 2.8% premarket to $18.08, relative to a 52-week range of $13.30 – $24.60.

Oracle Corporation (NASDAQ: ORCL) is up 2.16% premarket to $33.10, relative to a 52-week range of $24.72 – $36.50.

Filed under: Pre-Market Activity, Trading Alert Tagged: AGNC, AKAM, APKT, CSCO, ORCL