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

To: james h. snyder who wrote (3755)	1/11/1999 10:30:00 PM
From: go_bucks	Respond to of 19700

CMGI is undervalued!!! redherring.com Net stocks split and run By Peter D. Henig Red Herring Online January 11, 1999 Back in the old days, all a company had to do was announce an Internet strategy and its stock was guaranteed to triple overnight. Alas, that paradigm has changed. Now, all a company has to do is announce a stock split and -- presto -- 50-point gains are in the bag. One look at Internet venture capital firm CMGI (CMGI) or Web broadcaster Broadcast.com (BCST) proves this point. CMGI's stock has been on an absolute tear ever since it reported stellar quarterly earnings numbers and announced a two-for-one stock split that exercises at the close of trading today. The same is true for shares in Broadcast.com, which were up more than 80 points today, after having stunned Wall Street last week with an intraday rise of nearly 100 points. Those are just recent examples. America Online's (AOL) and Amazon.com's (AMZN) recent stock split-and-run actions were even more phenomenal. Even after Amazon exercised its three-for-one split, the stock has run more than 70 points, reaching as high as $199 on a post-split basis, or an amazing $597 on a pre-split basis. INTERNET INSTITUTIONS "CMGI is certainly not a stock we would consider for widows and orphans," says Ted Kunzog, analyst and senior editor with Internet Stock News, "but I think we can still consider the stock relatively undervalued." Undervalued? At $245.25 per share, up $74.25 today, with a trailing price-to-earnings ratio of 92.7 and a market capitalization of $6.32 billion? Now that's rich. Or perhaps it's not rich enough. What many investors may not realize is that at a recent Morgan Stanley Dean Witter conference held in Arizona, some of the country's largest institutional investors were treated to incredibly bullish and enthusiastic presentations by some of the Internet sector's most high-profile players. Analysts report that CMGI blew away the crowd with its 1999 business strategy and its announcement of a new Internet venture capital fund, @Ventures III. Broadcast.com's presentation at the same conference was also rumored to have wowed Wall Street's biggest and baddest, kicking off a blockbuster rally in the stock that sent shares up more than 50 percent in a single day. "This year we're entering a new era for Internet investments," says Mr. Kunzog. "With AOL being listed on the S&P 500, institutional investors are realizing they have to get on board with some Internet stocks." Mr. Kunzog and others point out that AOL, CMGI, Yahoo (YHOO), and to some extent, Amazon, are now considered blue-chip Internet investments. Institutional investors who missed out on last year's phenomenal bull run in Net stocks are suddenly determined not to be left on the side of the Internet highway again, letting these runaway gains pass them by. "[Internet stocks] are finally getting their profiles raised as people realize these are not just stocks for small investors," says Mr. Kunzog. WOOLY WILD WEB STOCKS Ryan Jacob, portfolio manager of The Internet Fund -- the best-performing fund of 1998, with a gain of 196.05 percent -- joyfully agrees that Wall Street is finally giving Net stocks some respect. "The Morgan Stanley conference was a wakeup call, and clearly now there's a lot of excitement in the area," says Mr. Jacob. The fund manager notes that today's wild gains are as much about the market cleaning out shortsellers as they are in anticipation of more bullish announcements at upcoming conferences, including the Donaldson, Lufkin & Jenrette conference in San Francisco this week. "This kind of run is not sustainable," says Mr. Jacob. "But I would have said the same thing to you a week ago." Yes, but even a week ago, Broadcast.com had not split its stock -- a move which some analysts say may have been premature, and even a bit opportunistic -- and CMGI had not exercised its stock split. Furthermore, that was before Broadcast.com was rumored to be in talks with Infinity Broadcasting (INF). And investors weren't nearly as excited as they currently are about Yahoo's upcoming earnings announcement and its potential for a major stock split. They don't call the Internet a superhighway for nothing.