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: ItsAllCyclical who wrote (527)	5/29/1998 11:35:00 PM
From: surfinSteve	Read Replies (1) \| Respond to of 19700

Great upside for CMGI mentioned in article: redherring.com Here's some of what was written: On the other hand, Philip Leigh, market analyst with Raymond James, was a perfect gentleman in describing why his firm chose to initiate coverage of CMG Information Services with an Accumulate rating. "We view CMG as a proxy for investors to participate in a publicly traded venture capital firm with diversified exposure to the Internet," said Mr. Leigh. Mr. Leigh cited two main reasons for investors to jump into CMG: diversification and valuation. "There's 23 companies under CMG's umbrella, and we have valued 14 of them at what we believe are comparable market prices and comparable revenue assumptions with other publicly traded companies, and that valuation has given us a target of 46 on the low side and 69 on the high side." Emphasizing that his firm takes a long-term view to recommending stocks -- even Internet stocks -- Mr. Leigh is relying on the fact that no fewer than six and as many as 12 of CMG's stable of Internet startups will go public in the next 6 to 12 months. Citing Geocities as "the crown jewel," Mr. Leigh believes that once Geocities starts its road show, it will generate so much excitement that the IPO will quickly become oversubscribed, "and if that happens, the best way to play it will be to invest in CMG." After meeting CMG's Chief Executive Officer Dave Wetherell ourselves, we tend to agree with Raymond James' position. As Mr. Leigh notes, and as we've written previously, "money talks and when you have Intel, Microsoft, and Sumitomo each with [almost] 5 percent of the company, that tells you something."