There is one very important point to keep in mind: CMGI didn't take a 15% stake in MSGI just to sell with a $30 - $50 point gain. David Wetherell of CMGI only buys companies with truly explosive growth potential, and you can be sure that CMGI is looking for a $100+ stock in the near term. Looking at MSGI's fundamentals, industry, and vision - they are a very viable candidate, in my opinion, to reach $100+ far quicker than most might imagine.
Also, now that it is quite apparent that GE Capital will be forced to convert its preferred shares within the next 17 days, MSGI should without a doubt show a profit in 1999. Remember, MSGI lost only .37 cents last year and .31 cents of that was an interest payment to GE Capital. Upon GE Capital's conversion of the preferred shares, MSGI will be making no more interest payments to them. And, Jeremy Barbera of MSGI has stated that his goal is to make MSGI a $250 million revenue company by the end of 1999. dmnews.com In my opinion, J. Barbera stated this $250 million (annualized revenue) goal because he knows that MSGI is going to far exceed this figure. I look for several more MSGI acquisitions, further consolidating this direct & Internet marketing industry which is projected to be $205 billion by 2001. ($153 billion was expended in 1997 in this fragmented industry.) MSGI is the consolidator, has CMGI assistance and leadership, and will be a major force to be contended with, in my opinion. |
