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 : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: HG who wrote (95297)	2/29/2000 6:50:00 PM
From: Libbyt	Respond to of 164684

Happy/CMGI... >What can I say ??? <VBG> I'm thrilled !!!! BSB soon ! Do you have any.... < Yes! I like CMGI, but for me it is a difficult stock to evaluate and follow, since it changes so quickly. I have other stocks that I own, and I understand their business and potential much more clearly. CMGI looks undervalued where it has been trading lately, just based on their holdings in various companies. Just IMO! money.altavista.com. Libbyt

To: HG who wrote (95297)	3/2/2000 9:31:00 AM
From: mike machi	Respond to of 164684

Mar 01, 2000 Analysts Take A Stab at Valuing CMGI Director of Online Research: Dave Sterman (3/1/00) Trying to find an appropriate value for CMGI (NASDAQ:CMGI - news) has been quite vexing for investors. Though there is a tangible value associated with its public and private holdings, many have concluded that the company is worth more than the sum of its stakes. But how much more? A pair of analysts have tried to answer that question, and each has concluded that the shares remain very undervalued. Prudential Securities' Paul Merenbloom figures the stock is worth $216 a share?more than 70% above current levels. Of the company's $30.7 billion market cap, he notes that the company's stake in public companies accounts for $15.8 billion. He assumes that that figure will rise to $18.7 billion by the end of the year. He then figures the company's private stakes are worth well more than the remaining amount of the market cap. Merenbloom estimates that private holdings, if they appreciate 35% in value in 2000 would be worth $25.4 billion by year eand. He additionally throws in a ?kieretsu? premium of 35%. That accounts for synergies derived from the cross-pollination of various CMGI properties. Add it all up, and you get that $216 a share target. Lazard Freres' Luke Fichthorn takes a slightly more consertive approach, predicting the shares will rise to $170 over the course of the year. His math is as follows: Public operating companies--$67 a share; Private operating companies?$84 a share; Public @Ventures companies-- $10 a share; and Private @Ventures companies at $8 a share. To be sure, the analysts are using a wide range of assumptions in formulating their valuations. And a number of drivers could cause those figures to be revised. But as more analysts adopt rigorous valuation models, they are likely to support the work of these two analysts. That should help the shares resume their upward climb. Updated on March 1, 2000 with CMGI at $117.50 Recommended on December 11, 1999 at $97.03. (Magic 25 is a diversified portfolio of stocks that Individual Investor believes will outperform the market over the course of the year. In 1999, the Magic 25 portfolio was up 79.3%. On average the portfolio has risen 31.6% annually.) -------------------------------------------------------------------------------- For more in-house professional stock analysis and commentary, visit us at Individual Investor Online.