CMGI Inc. (CMGI-NASDAQ) is down another 5% in trading today, yet it really is acting like it is just follow-on profit taking and more of a buyers-strike than it does anything overly ominous to the long-term focus of the company.
After a 66% run from the quarter before and going into earnings, it actually makes sense that the stock has pulled back. The sharp drop immediately after the news seemed a bit harsh, but the after-event trading activity has confirmed the action. It is always hard to sell someone who sees a drop in their shares that”this is good and orderly” because a drop is a drop, but that looks tobe the case. What may have added fuel to the fire is that this marks the third consecutive day where the Dow Jones Industrial Average has seen triple digit declines. We all know how strong the market has been right before that.
Forbes gave all the positive summary of its own, and you can go through our notes over conference call. Now that company is continuing to press its ModusLink image and brand, things are slowly getting better even after two large customer losses over the last two quarters. The hidden call option is the @Ventures IV investment fund dedicated to clean energy and renewable energy. The company has made some interesting investments in the sector and these may have significantly higher values down the road if alternative energy continues to gather steam like it has. Here was our full preview discussing what was expected ahead of earnings.
In the last two days, Internet Capital Group (ICGE) is down mostly today by 3.7% and Safeguard Scientifics (SFE) is down almost 6%.
Jon C. Ogg
June 7, 2007
Jon Ogg can be reached at email@example.com; he does not own securities in the companies he covers.