Deals in the Internet sector bring investors into the sector once again after a few weeks of downward trending. Consolidation emerges as a driver of valuation much as it did earlier in the year in round one of merger mania. This looks like round two. ISDEX gains 5% to 573 as NASDAQ beeps up slightly to 2526.39 and the Dow sees some profit taking.
The question now is: Is CMGI fully valued? I can see the way clear to CMGI being valued at double its current level. To me this is not a earnings story it’s a holding company story. With CMGI you get a basket of Internet firms in one stock. Also, CMGI’s story relies on solid visionary management and I put Dave Wetherell at the top of my short list.
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