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

To: Carolyn who wrote (9186)	6/3/1999 7:24:00 PM
From: Candle stick	Read Replies (3) \| Respond to of 19700

Prudential Picks Up Coverage of CMGI fnews.yahoo.com Jun 03, 1999 Investors (or rather speculators) took no prisoners in the Internet sector during the last couple of weeks. CMGI (NASDAQ:CMGI - news) sold off with the rest of the pack losing 25% of its value and declining to $93.63 post-split (the stock split 2-for-1 on May 27). We believe CMGI is being unduly punished. There is no deterioration in the fundamental investment thesis. The company sticks with its game plan of investing in promising Internet technologies and ideas. The company has a proven track record of growing them into viable commercial models. In fact, CMGI decided to take part in yet another promising project. The company's @Ventures III invested in Productopia, an Internet-based consumer report service. Currently, the company is developing an Internet-based tool that will allow its users to conduct product research and engage in electronic commerce. According to recent studies, approximately 80% of Internet users go online to dig for information on consumer products before proceeding with a purchase. And this is the opportunity that Productopia is trying to capitalize on. Productopia's founders, Roger Neal and Rob Novotny, are former executives at America Online (NYSE:AOL - news) and Netscape Communications, respectively. Productopia is also working with AOL and Netscape. Factoring in management's extensive background in Internet economics, we believe that Productopia could become a fast-track IPO opportunity for CMGI. Separately, another investment house launched coverage of CMGI. Paul Merenbloom of Prudential Securities initiated coverage of the stock with a Strong Buy rating. He points out that CMGI is an unprecedented opportunity in the Internet sector. "As a hybrid venture investment, direct investment, and operating entity, CMGi represents a truly unique investment vehicle," says Merenbloom. "CMGI ? has proven success, a strong pipeline, vision, and operating experience that warrants a premium valuation in the marketplace," he adds. Merenbloom values CMGI on the sum of its parts. He estimates that the value of the company's public holdings is approximately $3.1 billion, while its private investments (existing and 20 assumed to be made in the future) could fetch as much as $7.5 billion. Factoring in these valuations, Merenbloom believes that the stock could reach $280 per share (pre-split) within 12 months. As we pointed out in our previous updates, CMGI could experience significant volatility in coming months. But the current pull back affords the chance to build up a position in the stock. We reiterate our Buy recommendation of CMGI. Analyst: Alex Yakirevich Updated on June 2, 1999 with CMGI at $93.63 Recommended on 11/16/98 at $18.48