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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (11868)	11/21/1999 8:32:00 AM
From: jaytee	Read Replies (1) \| Respond to of 14162

Herm: Regarding this particular viper . . . (not the version by Dodge, but the stock CMGI). . . what's driving it. Here's what I was reading. Appreciate your insight on how to play its certain volatility and upward surge next 12 mos without making an "asp" out of myself. individualinvestor.com (11/18/99) On Wednesday, CMGI Chairman David Wetherell outlined his vision for his company for the coming year. Fueled by his comments made at the Bloomberg Internet Conference in San Francisco, shares of CMGI rallied 20% on the day to $124.75. During his presentation, Wetherell picked apart the company's investment strategy, reviewed its acquisitions completed so far this year, and outlined the roadmap the company is going to follow in the next twelve months. Like this Article? Here are some of the noteworthy details: CMGI will be bringing at least half a dozen of its private companies public. These include MotherNature.com, Furniture.com, Vicinity, Ancestry.com, AltaVista, and CMGI Solutions. All IPOs are scheduled to take place sometime during the first half of calendar 2000. CMGI is on track to grow its revenue base nearly 70% this fiscal year to approximately $750 million. These projections reflect the organic growth that the company is planning to achieve. These numbers may prove conservative, since CMGI will maintain its current acquisition pace – one to two direct acquisitions per month and four to six investments through the @Ventures channel. Shares also received a lift from the just-completed World Trade Organization (WTO) agreement with China. A more open China could prove very beneficial for companies such as CMGI. Prudential's Paul Merenbloom, one of the most vocal supporters of CMGI, sees the agreement creating a favorable environment for the introduction of the U.S. telecommunications and Internet companies into the Chinese market. “Acceptance of China into the WTO would … open the doors for development of foreign-based telecommunications and Internet focused organizations into the greater China market,” writes Merebloom in his recent report. He also thinks that CMGI's established ties with Pacific century Cyberworks, headed by Richard Li, could one day set an example for other U.S. companies wishing to establish presence in the Chinese market. “… given the pre-existing relationship between Pacific Century Cyberworks and CMGI, … the potential exists that these two companies could be identified by U.S., WTO, and/or Chinese government officials as a ‘showcase' element for developing cooperation between the Sino-American parties,” writes Merenbloom. Merenbloom, who rates the stock a Strong Buy, sees the stock reaching $186 by the end of calendar 2000. This valuation is based on expectations that CMGI's portfolios of private and public investments will be worth approximately $11 billion each. He accords a value of $5.5 billion valuation of the private portfolio and $6.5 billion of the portfolio of public companies. We think that Merenbloom's target price could be easily surpassed in coming months, given the quality and breadth of CMGI's IPOs and strong interest investors continue to demonstrate toward CMGI's companies being introduced to public markets. Analyst: Alex Yakirevich Updated on November 17, 1999 with CMGI at $124.75 Recommended on 11/16/98 at $18.48 jaytee