The recent restructuring announcement by cmgi is intrinsically positive IMO, but it may have short term negative results on the market. It appears to be a significant downsizing in a period when there was little public discussion of a major oversized condition. The danger lies in the investing public interpreting this move as a major admission of failure.
The "streamlining" of the operations into six "lines of business" is good. It is basically window-dressing, of course--but bad window-dressing was the major problem and it needed addressing. With only one of the six lines of business allocated to venture capital, DW is placing the venture arm in better perspective with the operation arm. Maybe they will stop calling cmgi a venture capital company so much.
Another point, I am not sorry to see this week's pullback in the market. I was afraid last week's rally might be premature and set us up for another October nitemare. By basing more now we may avoid that.
In addition to cmgi, I would recommend that all of you take a hard look at bvsn and edig. Like cmgi, bvsn is a spring about to be sprung, and edig is moving up on anticipation of listing on the naz. As Bob says, seasonality is just around the corner. Many will be saying, "I wish I had loaded up back in early September."
Best,
p40warhawk |
