XLA or SCF from Mass. to Burmuda Message Board

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Technology Stocks : XLA or SCF from Mass. to Burmuda

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To: J.Y. Wang who wrote (761)	11/1/2000 10:40:23 AM
From: Scott Bergquist	of 1116

There is no question that CMGI-style operations are no longer absurdly valued by the "market". I was down on Xcelera and other "incubator" -type plays all during the Jan-May 2000 wild ride. I thought 40 for XLA in May was ridiculous. But at the current price level I think there is underlying fair valuation in Mirror Image and Core Change, and fair valuation in other holdings they have. It is just a matter of not accepting 200 p/s calculations as valid. Mirror Image has a definite internet infrastructure series of products that will produce positive earnings, as opposed to Akamai, which cannot produce positive earnings for years. Akamai is much like the Leap Wireless and other heavy neg-earning stocks. No profit for years. Still the market tolerates them. Xcelera doesn't have the debt of CMGI, or the negative operating costs. In spite of the non-quarterly reporting, they still provide much information. How did the market take CMGI's CEO announcement about "plenty of cash"? Up to 21, then down to 16. It is a market in transition, but I think Mirror Image will turn out to benefit Xcelera well in the next six months.

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