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 : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: jtechkid who wrote (504)	5/21/1998 7:37:00 PM
From: Premier	Read Replies (1) \| Respond to of 19700

Unfortunately, whole internet universe is overvalued. It is unfair to single out CMGI. CMGI is less riskier because of its diversification and contacts than many other internet ventures. You will probably be better off with an arbitrage shorting individual firms (like LCOS) and going long CMGI. You have proposed that CMGI's miscellaneous companies may be valued at 100m. I am certain that CMGI has already invested much more than that in its 22 odd ventures. Some the better known names being Planet Direct, NaviSite, Engage, ADSmart, InfoMation, Password. CMGI has also invested in several ventures through @VenturesI and @VenturesII. Additionally, CMGI has declared its intention to fund @VenturesIII from part of the sale of 1m LCOS shares. It is difficult to quantify future earnings in internet and people are paying multiples of revenue rather than multiples of earnings! Barnes & Noble reported that they spent 13m and earned 9m from internet division but still want to continue spending on internet division. If one believes internet is vapor and is likely to vanish in time, one should take the arbitrage position as above. IMHO, shorting CMGI is invitation to financial disaster. Good luck to you. Premier