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

To: bargainman who wrote (5918)	3/12/1999 5:10:00 PM
From: Jenne	Read Replies (2) \| Respond to of 19700

Analyst Says Expectations Hurt Lycos, CMGI Shares By HEESUN WEE Dow Jones Newswires Falling share prices of Lycos Inc. and CMGI Inc. Friday may be a case of unrequited expectations, according to William Blair & Co. analyst Abhishek Gami. Mr. Gami was among others who participated in a conference call after-market Thursday with Lycos, the portal-site company. Mr. Gami said some investors may have been holding their breath for a possible announcement related to CMGI, a major investor in Internet, interactive media and database technologies and the largest holder of Lycos shares. But no such news was released. And those investors subsequently may have dumped their shares, pulling Lycos and CMGI stocks downward, speculated Mr. Gami. Shares of Lycos fell 10 3/8, or 10%, to 98 15/16 Friday, while CMGI's shares skidded 18 1/8, or 10%, to 164. Both are traded on the Nasdaq Stock Market. Meanwhile, the Nasdaq Composite Index skidded 30.70 to 2381.55, while Morgan Stanley's high-tech 35 index slid 17.89 to 956.05. Triggering the retreat was database-software maker Oracle, which was pummeled by investors worried about disappointing sales results released late Thursday. Oracle's shares fell 8 5/16, or 23%, to 28 9/16 on Nasdaq. Stocks of both Lycos and CMGI recently have been volatile on news CMGI is considering a bid for Lycos that would top the current offer by Barry Diller's USA Networks Inc. And with the dearth of definitive news Thursday, all three companies' stocks will continue to be volatile, Mr. Gami said. "Maybe some investors expected a deal in the conference," he said. Lycos officials declined comment Friday on the conference call. CMGI couldn't immediately be reached for comment. The uncertainties of the Lycos-USA Networks deal were stoked Tuesday when CMGI Chairman and Chief Executive David S. Wetherell resigned from the Lycos board to explore alternatives to the USA merger, possibly including the outright acquisition of Lycos by CMGI. CMGI then hired Morgan Stanley Dean Witter to drum up alternative offers for Lycos. CMGI was an early financial backer of Lycos and holds about 18.5% of its shares. As a Lycos board member, Mr. Wetherell originally voted in favor of the USA merger. But after it was announced, he expressed dismay at the price and the market's negative reaction.