CMGI What is the latest news on this stock? Message Board

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Technology Stocks : CMGI What is the latest news on this stock?

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To: xclently who wrote (7490)	4/25/1999 1:10:00 PM
From: Brian Malloy	Read Replies (3) of 19700

I think CMGI will spend most of next week in a $200-$300 trading range. On the upside CMGI was under its 10 Day moving average but on Thursday and Friday its intra-day trading range rose above. If we get a close above the 10 day moving average then we have room to $300 and it could all happen simultaneously (in the same day). An intangible that could help this? New/buzz coming from next week's Hambrecht & Quist Technology Conference, CMGI presents on Tuesday. On the downside I place support near the $200 level. a. It is still the second half of April and in terms of seasonality downdrafts can occur. b. A lot of investors in tech stocks/inets got a scare last Monday that they will not soon forget - when the Margin calls started coming. Thankfully, in the months previous to this the brokerages started raising margin requirements. In hindsight a prudent move because we probably would not have seen last weeks recovery without it. Individual investors will likely be more cautious and less willing to bid up the highflyers. c. Technically, the indexes have gone up too fast in terms of the DOW and recovered too fast in terms of the NAZ. At some point we may get a retest of Monday's lows on the NAZ. I picked up IBM May 190 puts Friday and watched the stock go from +9 and close at +5 and change on the day. Not a good sign for continued forward momentum in my book. IBM at this juncture serves as a bellweather of sorts given the failure of MSFT, GE, DELL and CPQ to make new highs. Profit taking should be expected. For those that follow fibonacci sequences it would be perfectly in order to see stocks give up 1/3 to 1/2 of the gains made off their lows last week. Basically, I'm waiting. I sold my May 250 calls last week. If we get a retest of $200 next week I will load up on June 260 calls and wait for CMGI to cross the $350 and $400 levels (ballpark only) in June selling into strength. Regards

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