Opportunities created: -
have done a lot of thinking lately about the recent sell-off in CMGI, AOL, YHOO, etc. Think i understand what is happening, and view it as a buying opportunity of mega proportions.
First
AOL/TWX - fast forward about 2 years. AOL-TWX is now one of the 5 biggest corporations in America. AOL is the dominant cable modem provider, and main ISP in America. Also is the dominant content provider. Advertising revenues have sky-rocketed and AOL-TWX now has 40 million regular users. There was concern when they cut their access prices in late 2000, but the new model of advertising based revenues and revenue-sharing of sales generated over their system has more than made up for that decrease.
CMGI- plainly speaking, this company has more internet sh*t going than anyone else. And the leadership has more internet savvy than anyone else. CMGI continues to build up their vertically integrated system, using AV (alta-Vista) as 1. free internet access supported by the revenue model, and 2. the link for offering integrated services, be it advertising, web-hosting, sales,
YHOO - the last of the 3 Internet Musketeers - most daily hits, tremendous increase in advertising revenues, deal after deal.
THE AOL-TWX announcement took the market by storm, shook the perceived value of internet companies down. But the reverse is true. it validates the value of the top tier internet companies. CMGI, AOL, YHOO. JMHO. larry |
