Hi hdl - since I am long, I ve to believe CMGI will do well, sooner or later. However, I disagree with the catalyst of a reversal. I don't think CMGI should rely on the ipo, not passively anyway. If CMGI recent strategy shift is any indication of its LT focus, I believe it will try to become an operating company with operating earnings. It is the only way to sustain the company and Mr Wetherell knows it. Besides, CMGI will also need to answer to the IRS. Therefore, I believe CMGI will turn the corner when and if it shows the street that it is running a real biz by 1) hiring a real COO and 2) showing a good LT game plan, amongst other things. The recent consolidation effort is a step in the right direction. Mr Wetherell's show of humility at the annual meeting didn't hurt. This incubator model is still a good profit center for the long haul, but CMGI should not rely solely on this sort of windfall. Instead, the company needs to show a steady operating revenue. This is no quick fix and it may take some time, but so long as the company can rein in spending and as soon as there is some sign of turn, the street may respond. After all, the street does look ahead!
best, Bosco |
