Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Red Scouser who wrote (73460)	12/9/1999 7:03:00 AM
From: rupert1	Respond to of 97611

GARP INVESTOR on the importance of Alta Vista in shoring up CMGI in a down "internut" market. These are extracts from a fuller report. Risks Although CMGI avoids some of the growing pains of other major Internet companies, it has some major risks of its own. These risks reflect CMGI's most visible business to Wall Street, investing in small Internet companies and then bringing them public. If the IPO market has a long dry spell, then that would put a major burden on the company?s liquidity. Since the CMGI does not have operating earnings and it will not likely have any anytime soon, less IPOs would make the company more vulnerable to the operating losses of its majority owned businesses. The acquisition of Alta Vista may prove to be a savior to the operating division, but that should take some time. In addition, if the stock market crashed or had a major correction, the Company would lose a lot of its paper value in minority investments like Lycos, Critical Path, and Silknet Software. Being so dependant on the stock market, makes it very hard for analysts to put a value on CMGI. Investment Summary Taken all together, CMGI should represent a good diversified way to play the Internet. CMGI ranks as one of the big dogs on the Internet along with Yahoo, AOL, Amazon, and Ebay. In the short term, CMGI's stock could see significant upside if it announces a major deal with its nearly 20% stake in Lycos and/or its 83% stake in Alta Vista. Over the longer term, CMGI possesses the assets to make it a major survivor on the Internet as weaker companies fold or get bought out. Furthermore, CMGI's current valuation looks to be attractive when compared to the likes of Yahoo, AOL, Amazon, and Ebay.