Sell-off = buying opportunity
To all who may be thinking that CMGI has had its run, I say that the good times are just getting started and I stand by my 100-point target for this year. Consider that mighty Yahoo! (YHOO) dropped about 20%, from 50 to 40, in October of last year. At that point, you could almost hear the short-sellers licking their chops, expecting the web bubble to burst. The stock doubled from that point. True, Yahoo! has a great brand name, but CMGI has Lycos and, more importantly, IMHO, it has the "Yahoo!s of Tomorrow," as I like to call them. You don't invest in what is essentially a venture capital fund on the basis of current earnings, and to the extent that the increased loss in the latest earnings report has caused a sell-off from the recent intraday high of 67 (67!) to the low 50's, an excellent buying opportunity has been created. You may want to wait for the knife to stick, but the long-term trend is upwards. Shorting CMGI is equivalent to shorting growth in the internet. Not a wise move.
Justin |
