I wanted to get this review out before it is no longer the weekend :). Las week I reviewed stocks from the week of January 30, 2006 . Let's take a look at the following week and see how stocks 'picked' during the week of February 6, 2006 worked out!
As I like to point out, this review assumes a 'buy and hold' strategy to investing with equal dollar amounts purchased in each of the stocks reviewed during the particular week and the overall performance calculated as an average of the individual performances. In practice, I employ a very different disciplined portfolio management approach involving quick sales of declining stocks and partial sales of appreciating stocks at targeted levels. This difference in strategy would certainly affect actual returns. However, for the ease of calculation, the 'buy and hold' approach has been adopted for reviews.
On February 9, 2006, I posted Akamai (AKAM) on Stock Picks Bob's Advice when the stock was trading at $26.01.
AKAM closed at $36.71 on July 27, 2007, for a gain of $10.70 or 41.1% since posting.
On July 25, 2007, Akamai announced 2nd quarter 2007 results . Revenue for the quarter came in at $152.7 million up 52% from last year's $100.6 million. earnings came in at $21.6 million or $.12/share, up from $11.2 million or $.07/share in the same period last year. The company met earnings expectations of $.30/share and beat on revenue with analysts expecting $150.9 million per Thomson Financial.
With the strong earnings report, the strong Morningstar.com "5-Yr Restated" financials page , yet the weak price chart,
AKAMAI (AKAM) IS RATED A HOLD
So how did I do during this week in February, 2006? The three stocks averaged out to a gain of 6.4%.
$36.9004 (07/30/07)
