FYI AS TO PPS INCREASE TODAY:
CMG Info Svcs Up 21%; Annual Investor Meeting Cited
NEW YORK (Dow Jones)--Shares of CMG Information Services Inc. (CMGI) jumped 20.7% Monday, eclipsing Thursday's 9.7% gain, amid investor exuberance generated by the company's annual summit meeting, analysts said.
CMG reached a 52-week high of 92 3/4, passing the high of 77 3/4 set Thursday. The shares closed at 92, up 15 3/4, on Nasdaq volume of 798,800. Average daily volume is 196,500.
The meeting, held on April 8 and 9, allowed CMG to showcase its diverse investments in Internet-related companies, sharpening investors' awareness of the company's operations in the sector, said Sherri L. Wolf, an analyst at Adams Harkness & Hill Inc.
CMG "gathered all their Internet portfolio companies to present information to investors and to one another," she said.
The convening of such a forum allowed investors to see the diversity of CMG's Internet investments, Wolf said. That diversity made the company's stock an appealing way of blunting the risk normally associated with the sector, she added.
"It's really a long-term way to play Internet," she said. "CMG is essentially a venture capital fund investing in Internet opportunities."
Company officials were not immediately available for comment.
Individual Investor Group's Aaron Edelheit agrees that CMG's range of holdings is the attraction for recent buyers.
"You're not betting on one company" with CMG stock, he said. "You're not betting on one technology."
Wolf also cited the company's interest in Internet search concern Lycos Inc. (LCOS), whose stock also has risen recently. CMG currently owns about 48% of Lycos, Wolf said, but plans to sell a portion of that holding in the near future.
Lycos hit a 52-week high of its own Monday, at 66 5/8, passing the high of 65 3/16 set Thursday.
-Justin A. Oppelaar; 201-938-5175
"Dow Jones News Service"
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