Information Management Associates Rises 28% on CMGI Investment
Bloomberg News
August 19, 1999, 2:39 p.m. PT
Information Management Associates Rises 28% on CMGI Investment
Shelton, Connecticut, Aug. 19 (Bloomberg) -- Information
Management Associates Inc. shares rose for the fifth straight day
after the software company said its buyingedge.com unit received
$10 million in financing from an affiliate of CMGI Inc.
Information Management rose 2 3/8, or 28 percent, to 10 7/8
in trading of 13.2 million shares, 66 times the three-month daily
average. Earlier, the shares touched a 52-week high of 13 1/4.
The shares of the Shelton, Connecticut-based maker of custom
interactive software have tripled in the week since it announced
that it secured financing from At Ventures, the venture-capital
arm of CMGI. Andover, Massachusetts-based CMGI is an Internet
venture investor that's backed companies such as Lycos Inc.
``I think it's a case of Internet fever,' said Sarah T.
Bernstein, an analyst at First Union Capital Markets in New York,
who rates the shares ``hold.' ``The investment by CMGI has made
the stock take off.'
Bernstein said her expectation of the stock trading at 4
within next 12 months is under review. Bernstein plans to issue a
report tomorrow that likely will raise the price target.
Last Thursday, Information Management also received $5
million in additional financing from Wand Partners LLC and a
commitment for a credit line of as much as $8 million. |
