Back on February 1st I noted that Barron’s produced their list of “15 Stocks To Buy Now”. I always like to run my metrics against others ideas. That is how I tend to get some of my best ideas.
The list was divided between tech and financials. It was noted the only names that were of interest to me were tech names, as the financials are screwed until rates start to rise.
Therefore that limited my review to technology names. Most of the names were complete dogs with Yahoo, Micron and Seagate on the list. The only name that interested me was Akamai Technologies $AKAM. Technically the stock has almost retraced 61.80% of its October 2011 low to May of 2015 high. That number was $41.24. That said it was holding $45 and there is decent weekly support there. Since February 1st, it has fallen from $45.50 to $39.57.
Fundamentally there is earnings growth from $2.43 to $2.69 this next year. So earnings growth of $0.26 or 10.69%, The P/E is 16.84. Not cheap. Earnings are out and the company beat estimates by $0.10 with $0.72 versus $0.62. In after hours it has popped to $45 which is $0.50 lower than where we looked at the name.
Some wise guy may say I suck because I did not scoop up shares in front of earnings but my mantra is never to enter a position ahead of earnings. I will stay with a winning position into earnings. Trends tend to persist. That is my process and process is key to surviving in Janet Yellen’s Neighborhood.
I noted this name went on my shopping list but I was not willing to buy it here. The lesson learned here is it makes sense to build lists and buy where there is real and not perceived value.
More followup tomorrow on how to buy this name using my intraday process based on the Erlanger Value Lines.If you enjoy the content at iBankCoin, please follow us on Twitter