Excuse my OCRs,, still use Visioneer scanner from 4 years ago ,,
So ..BancBoston/R & S is saying basically that based on Oct 5th price,,, CMGI's equity valuation ( I would like to call it book value ;-0 )is 43 per share, only counting about 40% of their current public shares,, LCOS GCTY AMZN etc,,
200 mill @Vetures III should give them another 5 to 10 dollars valuation ,, as a going concern,, CMGI's cash burn rate is about 6 mil per month ,, this money will let them urinate in the wind for 2 - 3 years with contempt ,, while making more acquisitions,,
Understand that they will close on this fund some time this month as CEO is travelling this month like mad,,
Also hearing a rumour ,, that King World ,, as well as many other well known concerns wants to join CMGI as an internet partner with future in mind ,, net presence,, i.e., www.jeopardy.com
Also hearing a big support and joint investment partnership with INTC, who already has a significant participation with MSFT et al ..
I don't know how much Fidelity is still behind CMGI but Sumitomo is also participating ,,as well as their deal with SoftBank of Japan ,, founded by a Korean Expat,, for Japan market, that wil grow , well as Japan YHOO ,,
With acquisitions lined up as well as current eggs being hatched,, what valuation will you give CMGI,,
I 'd say .. 55 - 60,, with @Ventures 200 mill ,, 65 - 70 with INTC partnership ,, future good will at 20 , as a going concern ,, with somewhere between EBAY and YHOO valuation ,, I would like to see it stay above 90 and go for 120 ,, as I had originally forecasted in June ,, when time was good ,, market was bullish ,, and I was playing golf in Europe,,
It is of course only my wishful thinking ,,
This report does make one thing clear,, as a concept .. as an internet company incubator, there is no other one out there,, that can and is able to dictate the terms of acquisition.. in the future,, They will have tied up the whole outlet on the net,, for a start up companies..
I.E.,, Raging Bull ,, can go further ,, with link up all over the internet with group of CMGI's own companie's links instantly than going out on their own ,, these kids got 2 mill for 80% of the company but they ended up with 50 mill worth of future growth ,,
My position is to hold long ,, trade and short ,, for CMGI is a one hell of a trading stock with average intraday spread of 5 points ..
(Voluntary Disclosure: Position- short; ST Rating- strong buy; LT Rating- hold)
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