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

To: Michael Berkel who wrote (5250)	3/7/1999 3:08:00 PM
From: Gary105	Respond to of 19700

Michael, I respectfully disagree about the ability to evaluate IPOs. I think they can reasonably be valued using Steve Harmons metrics (price/sales, price/user, etc) for internet companies relative to their peers. Most of CMGI's holdings (with exception of LCOS and GCTY/YHOO) are small companies - none are in top 100 web sites. I think there is potential in new broadcast venture, in internet hosting company, in planet direct and in the combination of its marketing/advertising companies - but the potential remains to be proven over time - proven first with user numbers, then with revenues and finally with earnings. Many of the other holdings are small potatoes. The current market cap of $7B is a fair valuation of the sum of CMGI's assets given their current state of development imo. Gary

To: Michael Berkel who wrote (5250)	3/7/1999 3:42:00 PM
From: B. A. Marlow	Read Replies (2) \| Respond to of 19700

Wanna "value" CMGI? Let's use Steve Harmon's model. As a former communications/cable/media analyst, he uses a very effective approach at Internet stock valuation (especially, for the portals, but the same concept can be applied to other sites). For those unfamiliar with it, Harmon creates relative valuations based on market capitalization per user. As cable TV firms, cellular operators and paging services tend to change hands on the basis of a "per-user" value, Harmon's approach tends to be relevant to Internet stock valuation, especially where "conventional wisdom" doesn't have a clue. For example, ATHM's purchase (for stock) of XCIT worked out to about $400 per user. (When the dust settles, who knows where we'll come out with the USAI/TMCS/LCOS deal?) Working backwards, we could establish a range of values for the users of various CMGI properties and multiply by an estimate of the number of unique users for each. If we applied the respective CMGI ownership percentages and added up the list, it would suggest an aggregate valuation for most of CMGI. With Harmon's approach, the elusive "premium" is built right in. I believe we're gonna be quite stunned by the result. Here's a link to Harmon's model. Anyone feel like oiling up a spreadsheet? BAM internetnews.com