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


To: Guardian who wrote (6702)4/3/1999 11:36:00 AM
From: Mark Peterson CPA  Respond to of 19700
 
I view this as CMGI's exit strategy for what had been its original core business. Rather than spend time and resources doing the heavy lifting for this business by developing it internally, it looked to partner with another in the industry who already had the infrastructure in place for this particular business.

The benefit, of course, is that CMGI holds an interest in another entity whose management and investor group is probably as competent as CMGI in their narrow field of expertise.

The risk is that this was a stock for stock deal, denominated in non-cash currency. That makes the transaction subject to market vagueries in the event that investors de-link the multiple of sales school of thought for internet valuations.

JMO. Does any of this make sense?

Mark A. Peterson



To: Guardian who wrote (6702)4/3/1999 12:06:00 PM
From: stock_bull69  Respond to of 19700
 
Guardian, MSGI is not a BB stock! It's simply not a national Nasdaq stock as yet because of the rules stating that it must trade above a certain level before being listed. I'm already in MSGI and plan on doubling my stakes on Monday. MSGI closed on Thursday at 16 15/16 after reaching an intraday high of 19 3/8.

Steve



To: Guardian who wrote (6702)4/3/1999 2:00:00 PM
From: Austin S.  Read Replies (1) | Respond to of 19700
 
Gardian - You are incorrect regarding CMGI always taking more than 15% interest in the companies in its stables. The list of companies owned by CMGI and their respective percentages are:

Lycos 20%
GeoCities 29%
Silknet 24%
KOZ 14%
Softway Systems 9%
Speech Machines 22%
Chemdex 16%
TicketsLive 16%
Critical Path 7%
MotherNature.com 23%
Visto Corporation 6%
Universal Learning Tech. 12%

And now: MSGI 15% - Did you ever stop to consider that MSGI's President and CEO, Jeremy Barbera, wouldn't allow CMGI to take any more than 15% of MSGI. This is very likely what took place, especially if you remember and consider that GE Capital already owns 24% of MSGI. MSGI has two very formidable and stragtegic partners in both CMGI and GE Capital. MSGI is heading on up.