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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (599)	3/20/2001 5:41:48 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

CMGI Sold $941M Of Portfolio In Second Half FY01 March 20, 2001 Dow Jones Newswires CMGI Sold $941M Of Portfolio In Second Half FY01 By PETER LOFTUS Of DOW JONES NEWSWIRES NEW YORK -- CMGI Inc. (CMGI) sold nearly $1 billion in shares of other companies in the first six months of fiscal 2001, boosting its bottom line as it struggled to weather the Internet shakeout. The Andover, Mass., Internet investment company generated proceeds of $941 million and recorded a pretax gain of $347 million on the sale of marketable securities during the six months ended Jan. 31, CMGI disclosed in a 10-Q filing with the Securities and Exchange Commission late Monday. By comparison, CMGI had proceeds of $684.2 million from stock sales in the year-earlier period. The activity included the sale of 8.4 million shares of Lycos Inc. for proceeds of $394.7 million. Lycos is now part of Terra Lycos (TRLY). CMGI also sold 241 million Pacific Century Cyberworks Ltd. (PCW) shares for proceeds of $190.2 million; 3.7 million Kana Communications Inc. (KANA) shares for proceeds of $137.6 million; 6.8 million Terra Networks shares for proceeds of $78.3 million (Terra is now Terra Lycos); and 1.3 million shares of Critical Path Inc. (CPTH), for proceeds of $72.8 million. The sales put a dent in CMGI's portfolio of publicly traded stocks. The company had $263.5 million in available-for-sale securities as of Jan. 31, down from $1.6 billion last July 31. On the other hand, the sales helped boost CMGI's balance of cash and cash equivalents to $964.8 million from $639.7 million. CMGI also had to write down the value of some of its investments. The company took impairment charges totaling $142.7 million in the six months ended Jan. 31 in connection with its holdings in Hollywood Entertainment Corp. (HLYW), Marketing Services Group Inc. (MSGI), Netcentives Inc. (NCNT) and Divine Inc. (DVIN), according to the regulatory filing. A one-time high-flier, CMGI has seen its shares battered over the past year as the value of its stock portfolio declined and investors became impatient with its mounting losses. It's now in the midst of a restructuring designed to accelerate its push for profits, including the sale of assets and internal mergers of its majority-owned units. CMGI shares recently traded at $3.25, up 25 cents, on Nasdaq volume of 2.8 million, compared with the daily average of 8.5 million. -By Peter Loftus, Dow Jones Newswires; 201-938-5267; peter.loftus@dowjones.com (Corrected 02:21 PM) CMGI sold nearly $1 billion in shares of other companies in the first six months of its fiscal 2001. (A report published around 1:59 p.m. EST incorrectly said the sales were in CMGI's second fiscal half.) -------------------------------------------------------------------------------- URL for this Article: interactive.wsj.com -------------------------------------------------------------------------------- Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved. Printing, distribution, and use of this material is governed by your Subscription Agreement and copyright laws. For information about subscribing, go to wsj.com used with permission of wsj.com