Out Fox The $treet

May was a very rough month for the Opportunistic Levered model. It severely underperformed the market as China specifically and emerging growth stocks in general were hit much harder than the overall market. This trend will likely continue into June, but eventually will provide great upside potential as most of the stocks in these areas remain extremely cheap. Expanded Track Record Recently the track record was expanded back to January 30, 2009 adding a little over a year to the previous record. As one can see, the model can be very volatile, but the end result has been very good for anybody that remains invested. Sometimes an investor has to accept wild price swings in order to make long term gains. It is not uncommon for top stocks to drop more than 25% before eventually rebounding to higher prices. At times it can be worthwhile to cash out to avoid losses such as the recent sell of Limelight Networks (LLNW). The sell limited losses without incurring material capital gains impacts...

Limelight Networks ( LLNW ) is a leading content delivery network provider sometimes seen as a sexy play on the explosive growth of mobile and connected devices and the move into the cloud. The company recently reported Q1 numbers that showed incredible revenue growth with over 100% growth in mobile internet and tablet computing revenue, online video platform, and site and application acceleration services. Read the full story at Seeking Alpha .  Disclosure: No position in LLNW. Please review the Disclaimer page. 

Today Limelight Networks (LLNW) announced that the United States Court of Appeals for the Federal Circuit had affirmed a District Court grant of LLNW's motion for judgement for noninfringement of Akamai's (AKAM) '703 patent. Basically confirmation that at the very least, AKAM can not prove that LLNW infringed on its patent. Considering the stock action of late its surprising that this news was bullish for LLNW. Eight straight down days sure suggested negative news on the horizon. Highlights the issues with tech trading. Sure it might have gotten an investor out of LLNW much higher then the intraday lows sub $6, but for all the wrong reasons. The market clearly shot first without any logical reason. It clearly wasn't apparent that LLNW would lose this appeal. In the low $6s, LLNW provides a opportune entry point into Content Delivery Networks (CDNs) and the move to cloud computing. As pointed out a few weeks back by Stone Fox, LLNW still needs to prove they can not o...

Limelight Networks (LLNW) has garnered a lot of attention lately as the Content Distribution Network (CDN) providers have been front and center in the media whether with the Netflix (NFLX) deal with Level 3 (LVLT) or the Comcast dispute with LVLT. Not to mention that the CDN sector is hot based on higher demands for data on internet whether via streaming videos from NFLX, mobile video or cloud storage. LLNW grabbed our attention because they are a relatively cheap tech stock in a hot sector. The major caveat being they are cheap based on revenue multiples but not so much based on profits. The key to stock gains will be whether they become a co-leader in the CDN market or remain a second fiddle to Akamai (AKAM). AKAM is the 800lb gorilla in this sector having a market cap some 13x the size of LLNW. Revenue is only 4-5x the expectations based on 2011 estimates. Their in lies the valuation proposal or trap depending on your point of view. Tech has long had a history of 2nd tier compa...

Added Limelight Networks (LLNW) to both the Opportunistic Long Only and Opportunistic Levered portfolios. LLNW is a play on a faster internet and the potential for being the next Akamai (AKAM). Unfortunately it could be the ugly sister in that competition and thats never good for a stock. Some news today that triggered the move other then technical was the news that fast growing deal of the day company Groupon announced that they are using LLNW and have seen substantial improvement in their website speed. They also recently expanded an agreement with Netflix (NFLX). Both companies are at the leading edge of the web so its crucial that LLNW win these deals. Though the question remains whether LLNW can start making money on all these deals. Thats where the ugly sister typically comes into place. Sure they'll get dates, but its usually when the pretty sister is too busy or too demanding. The stock will soar if any of these new deals start dropping to the bottom line. Good inter...