Seriously, did he really contribute that much to the world? Sure, he came up with a few catchy songs, but Bon Jovi's material contribution to the world population is minimal, even compared to other musicians. Jon Bon Jovi may have been a cultural icon in the 1980s, but is he still relevant today?
Did Bon Jovi revolutionize the music industry? Some may argue that he did not, and instead, independent companies have done much more. Companies such as LimeLight Networks LLNW may fit this description. LimeLight Networks is a small-cap technology company that distributes content such as music, video, and software over the internet.
While many may contend that there are free services that can help garner exposure, such as Youtube and other blogging services. In today's market, though, it is extremely important for prospective artists to find professionals who can connect them to the right people. Having proper distribution can help exposure significantly.
Bon Jovi most likely used a professional service to catapult his own career too. These are the unsung heroes of the music industry: the people who mediate musicians with executives. LimeLight Networks takes its business model one step further. It manages content on its own servers, and helps distribute it on a real-time basis. What that means is that LimeLight's connections can access any artist's content immediately.
LimeLight Networks may be a good investment for some investors, as it has managed to bolster revenues on a yearly basis. It has also ramped up expenses such as research and development and has managed to decrease its net loss over every year. The company's cash flows have also been positive, as it has improved its operational cash over time. It has also contained capital expenditures and limited debt and equity issuances.
Jon Bon Jovi should be thankful for companies like LimeLight Networks. These companies host content and distribute it in such a manner that many artists gain significant exposure to interested producers. Had these companies not existed back in the day, Bon Jovi may have never experienced success.
Consumers have a few options when it comes to understanding companies like LimeLight Networks. The historical performance could help investors gauge where the company is heading into the future. Investors should also keep up with the news via Benzinga Pro to stay on top of major developments that move markets.
Bullish View:
Traders who believe that LimeLight Networks operates a successful business might want to consider the following trades:
- Long LimeLight by purchasing shares or call options. LimeLight currently appears to be close to a technical support level, so now may be a good time to buy.
- Short another similar company, like Rackspace Hosting RAX. You could short this company to hedge a long LLWN trade or to accentuate your belief that LimeLight will dominate the media distribution market
- Long an ETF like the Technology SPDR XLK. If a significant industry like media is doing well, technology itself will probably do well.
Traders who believe that LimeLight Networks will not succeed in the future may consider the following positions:
- Short LimeLight after it breaches the $2.90 level, which appears to be a technical support level. The next support level appears to be at about $2.70 or $2.60.
- Long a competitor like Akamai AKAM, as someone bearish on LimeLight may believe that a large-cap competitor is more likely to garner market share.
- Buy put options as LimeLight Networks' earnings announcement comes along. The company may not be able to sustain its costs as precious metals rallied significantly in Q3 2011
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