CMGI just got hammer and hammered hard.
CMGI just reported lower income on lower sales. Not what the holders of a growth stock in a growth industry want to hear.
But hold on one minute....
This is a company that has re-invented itself. Reconform it's business model to produce earnings. If a new kid were to come on the block with a negative PE, people would still buy the company. CMGI today is not the same company it was two years ago, yet it is still making money and will continue to grow.
CMGI used to be a player among the Internet incubators, now it is a supplier with growth in sales and a postive PE in the low double digits. But how are the share holders taking the change?
Stepping back and using the 200 day and 100 day moving average I see a core of believers with a huge volume of new believers bringing this stock towards a short term price of $1.75. From there it will continue to grow based on it's fundementals.
$55.6 (09/26/07)
