FertileMind.net Issues Opinion On CMGI.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by FertileMind.net NEW YORK--(BUSINESS WIRE)--Jan. 11, 2000 FertileMind.net Issues Opinion On CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) : The Company Must Begin to Shepherd its Companies to Profitability The following is market news, dated January 10, 2000 from fertilemind.net, located on the web at: http://www.fertilemind.net CMGI has earned its fabulous reputation as an Internet pioneer since its prescient 1994 sale of Booklink to AOL and 1995 investment in Lycos, then a research project at Carnegie Mellon. With its profits, it developed @Ventures, one of the first Internet incubators in the country. Using CMGI's capital and operating expertise combined with the flexibility and aggressiveness of a startup, @Ventures helped bring to life several companies that gained significant attention and market share. "CMGI parlayed their prescience and new business model into an investment portfolio of companies across the Internet economy. But, almost the entire portfolio remained deeply in the red on an operating basis. So the company began to shepherd its flock to the public markets and then made several acquisitions to reach critical mass. Their most recent purchase, Alta Vista, creates an Internet-wide network for all of their properties. The acquisition now can serve as a biased traffic cop, sending users and business to their other portfolio companies," says Aram Fuchs, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Fertilemind.net. But, the acquisition will not solve the company's most pressing problem. CMGI's stock has benefited much more from the increase in public market valuations of Internet companies than from actual profits in their operating companies. With the Internet out of its larval stage, Wall Street is listening with keener interest to earnings reports. Witness the drubbing Amazon.com took last week. As a result, CMGI has to bring its companies to breakeven. They have done a fantastic job of building an Internet network of substance, but are having a tough time shepherding their children to profitability. "And no one," says Fuchs, "likes a shepherd with a flock of sheep that produces no wool." Aram Fuchs is CEO of fertilemind.net and is also a limited partner in Spaide Partners, an investment partnership. At the time of publication Fuchs had no investment interest in CMGi. Fuchs frequently buys and sells securities that are the subject of his articles, both before and after publication. Fuchs' complete portfolio or any particular securities, including the specific securities discussed, may change at any time. Under no circumstances should any information discussed in this article be considered financial advice or a recommendation to buy or sell securities. You can contact Aram Fuchs on his message board to express your opinion regarding this article. About fertilemind.net Fertilemind.net is the first community on the Web for educated investors. The site offers cerebral and cogent analyses of the financial markets by in-house analysts and reporters called "Focal Points". The Focal Points serve as leaders in the hundreds of debates going on at the site. "My Fertilemind" gives the informed investor a chance to make his or her start page the home for all investing needs including his or her own personal message board, free web-based email and "one click away" access to all of the message boards on their stocks. FertileMind.net is based in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . For more information please visit the company's site at www.fertilemind.net or contact Jennifer Chasin, ePR at 516-670-8635 (jen@eprinc.net.) FertileMind.net analysts and members have written commentary on a variety of stocks such as: Amazon.com (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMZN AMZN Amazon.com (NASDAQ symbol) ), Priceline.com (NASDAQ: PCLN PCLN Priceline.com (stock abbreviation, AMEX) ), Excite @Home (NASDAQ: ATHM ATHM Excite@Home (NASDAQ symbol) ATHM Alternative Therapies in Health and Medicine ATHM American Textile History Museum (Lowell, MA) ), America Online (NYSE NYSE See: New York Stock Exchange : AOL), Red Hat (NASDAQ: RHAT RHAT Red Hat (stock symbol) RHAT Rainwater Harvesting Association of Tanzania RHAT Register Hba Attributes ), Yahoo! (NASDAQ: YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ), Lycos (NASDAQ: LCOS (Liquid Crystal on Silicon) A technology used to make microdisplays for rear-projection TVs and head-mounted displays (HMDs). Each LCoS chip hosts a grayscale LCD shutter sandwiched between a cover glass and a mirror. ), CMG (NASDAQ: CMGI), Value America (NASDAQ: VUSA), Egghead.com (NASDAQ: EGGS), Commerce One (NASDAQ: CMRC), Go2Net, (NASDAQ: GNET), 3Com (NASDAQ: COMS) 4Kids Entertainment (NASDAQ: KIDE) Abercrombie & Fitch (NYSE: ANF ANF antinuclear factor; see antinuclear antibodies (ANA), under antibody. ANF abbr. antinuclear factor ANF atrial natriuretic factor. ), Amgen (NASDAQ: AMGN), BlueFly (NASDAQ: BFLY), CDNow (NASDAQ: CDNW), Cisco Systems (NASDAQ: CSCO), Compaq Computer (NYSE: CPQ), Dell Computers (NASDAQ: DELL), Covad (NASDAQ: COVD), HotJobs.com (NASDAQ: HOTJ), Intel (NASDAQ: INTC), Inktomi (NASDAQ: INKT), Ivillage (NASDAQ: IVIL) MarketWatch (NASDAQ: MKTW), Philip Morris (NYSE: MO), Preview Travel (NADAQ: PTVL), Salon.com (NASDAQ: SALN), World Wrestling Federation (NASDAQ: WWFE), Yahoo! (NASDAQ: YHOO) |
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