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

To: Islander who wrote (3660)	1/10/1999 5:51:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 19700

December 17th Briefing.com mention of CMGI... a good review for old-timers and great reading for newbies. CMG INFORMATION SERVICES (CMGI) When Briefing.com first covered this stock, we called it "the ultimate Internet stock." A triple onslaught of press releases underscores what we mean. Tuesday's press release announcing blowout earnings show why. The company's operating loss was more than $19 million on revenues of $40 million. But who cares? Gains on sale of stock in companies that CMGI financed total more than $84 million dollars, all of which, after taxes, falls to the bottom line. This will be the pattern for the next couple of years for CMGI. Step back for a moment and picture what the Internet revolution really means, for an investor. When investors finally get the picture on the Internet revolution, they rush to buy stocks of companies that will be part of the Internet revolution. Forget the business model, or whether a company is profitable, investors simply have wanted to own some part of the Internet. This desire, along with the booming revenue growth of many companies like Yahoo (YHOO) and Amazon.com (AMZN) is the principal reason that stocks have risen to unprecedented valuations. At the heart of the internet revolution, the most desired thing is Internet stock!. And Internet stock is the principal product of CMGI. There isn't any other public company out there that has turned itself into an Internet IPO machine like CMGI. Starting just four years ago with the sale of Book for $30 million in AOL stock (later sold for $60 million), for which they have financed more than thirty companies. Principal among these are Lycos ($2 million stake now worth $460 million) and Geocities (original $6 million stake now worth $260 million ) This morning's press release announced the closing of of their $275 million CMGI@Ventures III venture fund, which includes such partners as Microsoft, Vulcan Ventures (Paul Allen), BancBoston Capital, and others. Expect CMGI to just build the stable of future IPOs. Another press release today announces that CMGI will split 2-1 on January 11. As long as the market for Internet stocks keeps up, CMGI, unlike any other company, can always have a blow-out earnings report, because they simply decide how many shares of each new company they want to sell. Forget Yahoo (YHOO), forget Amazon.com (AMZN). The company at the very top of the Internet pyramid is CMGI. When the Internet stock mania falls apart, CMGI may fall the furthest, since that is their core business now. But with that day seemingly far away, CMGI will likely continue to ride the Internet fever even higher. Posted: Jan 10 1999 5:16PM EST as a reply to: Msg 11410 by SHrmb