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

To: Elwood P. Dowd who wrote (84604)	9/1/2000 8:41:48 PM
From: Satish C. Shah	Read Replies (1) \| Respond to of 97611

Hello El: Found this in my email, read it at your own risk. Regards, Satish CMGI Benefiting from IPO Market Recovery (CMGI) Despite a rebound in the IPO market, Internet incubator CMGI (CMGI - $40.87) remains in the doghouse with shares trading near 18-month lows. But special situations advisor Jonathan Steinberg sees great rewards ahead for investors who can be patient. He sees a recovering IPO market heightening CMGI's shot at cashing in on some of its investments and, by extension, cash levels and burn rate. The recovery also means investors can more easily mark-to-market CMGI's underlying assets. Ignoring CMGI's holdings in publicly traded companies, Steinberg sees the firm trading for just 1.2x the amount it has invested in private holdings. "If history is any guide, CMGI will score significant gains with those stakes over time," he says. For example, CMGI scored a 600% gain in Half.com in just six months before selling to eBay. Plus, the sum of CMGI's stakes is worth 75% of the entire firm's value. "Importantly for investors, all of those stakes are operating ahead of plan," Steinberg says. Steinberg quotes analysts who see CMGI shares hitting $65, and says one sees it topping $90 in 2001. These analysts also predict the firm will generate $877 million for the fiscal year that ended in July 2000, well ahead of last year's $176 million and well on the way to forecasts of over $2 billion for next year. Shares may meander now, but Steinberg says CMGI's business model remain solid. "We continue to believe that long-term investors will be well-rewarded for their patience," Steinberg says. He reiterates his buy recommendation. For more on Jonathan Steinberg's advice see "CMGI," September 2000, Individual Investor's Special Situations Report. Jonathan Steinberg provides one undervalued stock per month poised for substantial growth and profit. This might be an emerging company ready for growth or an established firm on the verge of a turnaround. It is also undiscovered (so far) by the market and investment press. For a FREE 30-day trial go to: investools.com