Out Fox The $treet

CenturyLink ended 2016 down at the lows, as the market was unimpressed with the company's decision to purchase Level 3. The 9% dividend appears easily supported after the deal closes, based on free cash flow analysis. A recent analyst price target provides ample upside that is a bonus with the large dividend. CenturyLink  (NYSE: CTL ) ended 2016 in the dumps. The market didn't fondly view the company's proposed merger with  Level 3 Communications (NASDAQ: LVLT ), sending the stock down to the lows from the start of the year. Even after the 6.6% gain on the first trading day of 2017, CenturyLink still offers a nearly 9% dividend yield. Should investors rush into the stock at around $25 per share? Please read the full article on Seeking Alpha.  Disclosure: Long CTL. Please review the disclaimer page for more details. 

 After one of the best quarters in corporate history, the announced buyout of TW Telecom  ( NASDAQ: TWTC     ) by Level 3 Communications  ( NYSE: LVLT     ) is mildly surprising. Considering the deal is mostly in stock, it might also signal that Level 3 stock has appreciated too much, with the company choosing to use it as the major currency in this deal.  In general, the deal is portrayed as an ability to gain scale and reduce costs via synergies. Remember, the companies compete against the likes of AT&T ( NYSE: T     ) for access to the global data communications needs of enterprise customers. Read the full article here .   Disclosure: Long AT&T. Please read the disclaimer page for more details.

As a telecom industry veteran, I'm all too familiar with companies that build data centers and networks for the future. All too often, service providers spent billions on networks that needed to be upgraded by the time they were installed. These companies always promised huge earnings in the future. Massive free cash flows were always around the corner once this feature was added or this connection made. Unfortunately, the competition always had the same plan leading to quick margin erosion and evaporating profits. While reading the Q4'11 earnings conference call transcript for Equinix (EQIX) , this statement in the opening remarks by CEO Stephen Smith got me thinking back to the internet bubble years. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

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. 

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...