360 Degrees of Akamai

Editor's Note: TheStreet.com has always believed that offering a wide variety of opinions and viewpoints -- rather than a monolithic "house view" -- helps readers make better investment decisions. In that spirit, we bring you "360 Degrees."

This weekly feature is designed to take advantage of our stable of reporters and contributors, who will offer analysis of specific stocks from all angles -- fundamental vs. technical, short-term trader vs. long-term investor.

Today's subject, Akamai Technologies (AKAM Quote), was chosen by our readers last week; please see our poll below to help determine the next stock to get the "360 Degrees" treatment.

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Akamai Has Room to Run, by Alan Farley

Akamai Technologies is sitting in a sweet spot. The stock broke out above key resistance at $18 last November and has been moving higher in a steady uptrend.

Although it has nearly doubled in price over the last five months, the technicals suggest the rally has considerable room to run. In fact, the current pattern shows little overhead resistance until the rally approaches $40. That level would mark a good place for traders and investors to start taking profits.

Avoid the Pain if the Bubble Bursts, by Richard Suttmeier

Akamai Technologies is rated a sell by ValuEngine and is trading 107.1% over its fair value of $15.72. The weekly chart profile is overbought, with the five-week modified moving average at $28.67. My model shows a monthly value level of $27.66, which is where I would expect buyers to emerge if the stock fell into a downtrend. My model currently has no pivots and risky levels for Akamai.

When a stock is both overvalued and overbought without a risky level, it is moving higher on pure momentum in a chart pattern I refer to as parabolic. With a stock that's gone parabolic, investors should avoid adding to positions, stay with their current position and raise a protective stop each week. I favor a sell stop on a weekly close below the five-week MMA, and I would raise the stop as this MMA moves higher. Protect gains, and avoid the pain when the stock's bubble bursts.

On Dec. 12 and Jan. 12, I projected that Akamai had risky areas at $23.86 and $24.74. Investors who reduced holdings at these levels booked some nice gains, but obviously my model did not anticipate the parabolic that evolved once these levels were taken out. However, my model has proved correct on about 75% of the stocks in the software industry.

Akamai's Streaming Ahead, by the TSC Breakout Stocks Team

This was originally sent to subscribers of TheStreet.com Breakout Stocks on March 1 at 2:12 p.m. EST. For more information on this newsletter, click here.

The world is dependent on information, and increasing numbers of people worldwide are getting their news and entertainment from the Internet. That is why we believe Akamai, which provides the technology for companies to make their content available for streaming or download on the Web, is poised for a period of solid earnings growth and premium shareholder gains.

That said, we aren't adding Akamai to our model portfolio today, because we want to wait for a better entry point in lieu of the stock's 100% run-up since September. A pullback under $25 from the current quote of $26.91 would compel us to initiate a position. We will update subscribers before taking action.

Akamai makes money by selling space in its server network to companies with Web applications so they can deliver their content over the Internet.

What's the next stock to get the "360 Degrees" examination? You decide. Select from these choices and look for the column next week.
	Finisar Nabors Industries Nokia Pacific Ethanol