(LVLT) - Level 3 Communications Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : (LVLT) - Level 3 Communications

LVLT 53.63

0.0%

Nov 1 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: tech101 who wrote (3563)	10/5/2007 3:07:53 PM
From: The Ox	Read Replies (2) of 3873

AKAM's growth will slow. Unless they have something up their sleeve that they haven't announced to the public, then it's obvious that their previous amazing growth rates will go down in the future. So they won't grow at 50% but there's little reason why they can't keep growth in the 20s for the next few years (at a minimum). The stock's price has been cut in half, as the market realizes that the years of 50% growth are in the rear view mirror. However, forward EPS estimates have come down and the stock still looks very reasonably priced at this time (to this observer). Put a 22 PE on next year's EPS and I come up with a $38 price target, for a stock that will be growing earnings over 30%. Put a 30 PE on it and the price jumps to $50/share. Unless you believe that growth is going to come to a grinding halt, I don't see how one should be that concerned to own AKAM at today's prices. LVLT has made many claims in the past (CORV, BWNG,etc..) that simply don't pan out to their bottom line when all is said and done. I hope you forgive me if I'm skeptical about LVLT's ability to erode AKAM's margins at this time.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next