from INDI today:
...
Magic 25
Mar 04, 1999
CMGI is Readying Two of its Private Holdings for Public Markets
Another two companies from CMGI's portfolio, NaviSite and Silknet Software, are about to be introduced to the public, according to David Wetherell, chairman of CMGI.
NaviSite, which is a part of CMGI's Internet Group, provides web site hosting, co-location, and other Internet-related outsourcing services to corporate clients. Silknet, one of CMGI's investments in its @Ventures II portfolio, is a developer of Internet-based call centers used by businesses to provide customer service.
At this time, it is difficult to place value on these holdings, since CMGI does disclose the financial performance of its private investments. However, we believe that the expected IPOs should receive a warm reception considering the fact that both are exploiting electronic commerce opportunities, which the folks at Jupiter Communications and similar research organizations predict to explode to tens of billions of dollars in the next two to three years.
In the case of NaviSite, our belief is further reinforced by the fact that the Internet outsourcing market is rapidly consolidating, thanks to PSINet, Verio, and the likes. After going public, it's conceivable that NaviSite could be an eventual acquisition targets.
Yesterday, Bloomberg reported that Ullas Naik, an analyst with First Albany, downgraded the stock of CMGI. As it turned out, the story was incorrect and was subsequently removed. In our conversation with Mr. Naik, he noted that the stock has done very well in the past couple of years and remains an attractive investment.
We reiterate our Buy recommendation of CMGI.
Analyst: Alex Yakirevich
Updated on March 2 with CMGI at $147.25
Recommended on 11/16/98 at $36.97
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