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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (9911)	6/11/1999 9:31:00 PM
From: Jenne	Respond to of 19700

Technology News Fri, 11 Jun 1999, 9:29pm EDT CMGI Shares Fall After Company Has Larger-Than-Expected 3rd-Quarter Loss By Aimee Picchi CMGI Falls After 3rd-Qtr Loss Is Larger Than Expected (Update1) (Updates with closing stock price.) Andover, Massachusetts, June 11 (Bloomberg) -- Shares of CMGI Inc., which runs Internet venture funds, fell 12 percent after the company's fiscal third-quarter loss was larger than some analysts expected. CMGI fell 11 3/4 to 89 3/4. The company said late yesterday it lost $27.8 million, or 30 cents a share, in the quarter ended April 30, compared with net income of $7.9 million, or 9 cents, in the year earlier. It was expected to lose 13 cents, the average estimate of seven analysts surveyed by First Call Corp. CMGI's operating expenses almost doubled. The company spent more on building the brand names and management teams of its Internet companies, said Phil Leigh, an analyst at Raymond James Financial Inc., who rates the stock ''accumulate.'' CMGI invests in Internet companies directly as well as through several funds, with the goal of taking them public or selling them to other investors. ''They've intensified spending because companies like Amazon.com have demonstrated that you have to build brand now,'' said Leigh, who expected a loss of 22 cents. ''The real economic value (of CMGI) is reflected in sum total of the portfolio and ways for CMGI's shareholders to participate in IPOs.'' CMGI said late yesterday on a conference call that it will start a share distribution program that will allow the company's current shareholders to participate in the public stock sales of CMGI's units. ''CMGI has a history of launching really good companies,'' said Leigh. ''Investors are overlooking the significance of this announcement.''