Friday, June 05, 1998 CMG, Internet stocks gain momentum
By Larry Barrett, ZD Inter@ctive Investor
June 5, 1998 1:40pm
Inter@ctive Week Online
"...Shares of CMG Information Services Inc. (CMGI) shot up 4 1/8, or 12 percent, to 38 ¬ Friday, ending a slide that had eroded more than 40 percent of the stock's value since mid-May. CMG and other Internet stocks made strong gains in heavy trading.
In May, the stock was trading at 53 _ before plummeting to 34 earlier this week.
CMG, which provides funding and support for Internet firms, has invested in a number of Internet firms...Earlier today, Needham & Co. analyst Ken Winston reiterated a "buy" rating on CMG.
After rocky start this week, Internet stocks have caught fire. Yahoo! Inc. (YHOO) shares rallied up 2 to 104 5/8 while Excite Inc. (XCIT) added 1 5/32 to 57 1/8 and CDNow Inc. (CDNW) moved up 1 3/8 to 19 «.
Last quarter, CMG lost $5.8 million, or 29 cents a share, on sales of $17.8 million.
First Call consensus expects it to lose 38 cents a share in its third quarter and $1.70 a share in fiscal 1998.
All three institutional brokerage firms following the stock maintain either a "buy" or "strong buy" recommendation.
In the third quarter of 1997, CMG lost $10.2 million, or 54 cents a share, on sales of $19 million.
The stock was trading at 6 3/16 at this time last year..." [emphasis added] source: © 1998
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