To: B. A. Marlow who wrote (5800 ) 3/12/1999 3:13:00 AM From: George Martin Read Replies (1) | Respond to
Conference Call: BAM, thanks for your comments, insights. Here are a few more items.
Conf. call be heard via ATT until midnight tomorrow (3/12):800 475-6701, code 437569.
CMGi Investor Relations site also has it -- need RealPlayer (go RNWK, too!). IR site has list all the CMGi investment / properties and is worth the visit. I thought Conf. Call showed the tremendous strategic vision of DW. CMGi properties are not a random collection but fit into a larger strategic picture. The phrase used: "value chain." Very interesting to hear a brief summary of each company,
progress as DW went through the list. In Jan. DW mentioned they had 1000 VC prospects to consider and in Feb. double that. Being part of the "value chain" obviously has potential to support longer-term growth beyond the VC stage.
LYCOS angles. BAM, I thought it was interesting that DW mentioned this investment banking go-round with Morgan Stanley had a different"strategic focus" than it did leading up to the USAI deal. DW mentioned that they are considering addiing or packaging other CMGi properties or assets with Lycos in new partnership opportunities. Interesting ! ? Too early for Magnitude Network, I would assume but
interesting prospect ? Incidentally, I it mentioned during the call
that Fidelity has 9 % of CMGI and 6.4 % of LCOS. DW mentioned that he personally as well as CMGi got hundreds of emails opposed to the deal and NOT one in favor. Finally, DW mentioned that CMGi's recent marked increase in market cap has brought a new factor in play.
SPLIT SPIN: I believe I heard at the end say that they did not want to
"manipulate or control" the stock price. As you say, that would be "politically incorrect." Like everyone I was disappointed with the
'no split now' decision but I guess you could also respect the internal discipline of it. Also, as some one pointed, in a roundabout
way it might actually make a 3:1 more likely when it does happen.
(Hopefully right after the resolution of LCOS.)
IPO's: 2 in process and 2 at the bankers. Latter 2 expected in 90 to 150 days. Keep that IPO conveyor/incubator belt moving right into the next millenium and watch the multiplying equity positions multiple in value like a geometric progression -- not bad !
BOOK VALUE: reported I believe as about $3.50 6 months ago and now about $30 with $1.6 billion in equity in GCTY, LCOS, and AMNZ (sold 90% at ave. price of about $160.) (Also have about 100,000 shrs of USWB another good company IMO).
Good luck and let's hope the bigger picture helps to get through tomorrow's bumpy ride --
George Martin
Gi
