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

To: Gary105 who wrote (4315)	1/24/1999 6:35:00 PM
From: Miguel Octavio	Read Replies (2) \| Respond to of 19700

Finding the value of all the pieces is typically a way of finding a company that is undervalued, but it is seldom a way of finding a company that is overvalued. Let me give you a very simple example: Assume CMGI sells all of its stakes in companies in the next three years for what we believe they are worth today. Say $70 a share. What is the company going to do with the money?. Invest it in new startups. What has been the cost of these startups so far?. I would bet less than $5 a share. So CMGI would then invest the money and if we assume things would be tougher from now on and the investments will only grow by a factor of 5 rather than 14,those $70 would be converted into $350 in 6-7 years, so the price of the stock today should not be $70 as the potential is there for new investments and new returns. It should be somewhere in the middle, depending on how you model the sale of investments and the new investments. Basically how slow or fast they will occur). That is the secret of venture capital, you use your smarts to find opportunities that will give you 1000% returns so that you can look for new ones. That is the beauty of CMGI long term. Short term it will depend a lot on Internet stocks which will be volatile. However, if Lycos is bought out soon, then expect the stock to react to it. In fact, expect the sector to react to it. Miguel Octavio