Stock Watch: CMGI Rises on Plan to Clarify Results

The change is aimed at eliminating confusion among investors about what CMGI's business is, and boosting its stock price, wire reports said.

Michael Graham, Internet analyst at Robertson Stephens, cut his estimate of CMGI's 2000 results to a loss of $5.91 per share from a loss of $5.65. "We remain extremely positive on the prospects for incubators and believe that CMGI is validating the model with its accelerating transition to an operating model," said Graham. The estimate change, he said, reflects "a full quarter of operations from the recent acquisitions of Tallan, Yesmail, and uBid." Graham, who rates the stock as a buy, said fiscal 2001 revenue will likely top $2 billion, "demonstrating 20 percent sequential growth from existing units." Separately, iCast Corp., one of CMGI's majority-owned subsidiaries, sold some assets to GlobalMedia.com (Nasdaq: GLMC) for $6 million in stock. Global Media, which ended unchanged Friday at 2 1/2, said it will provide streaming media, Web site development and e-commerce services for the more than 100 radio stations reached by iCast's Magnitude Network.