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3. CMGI INC. Dot-com success unravel quickly 5/22/2001
CMGI -- in some ways, it's the Net era's answer to the corporate conglomerate fad of the 1960s, with over 60 subsidiaries and investment properties -- saw its shares lose 97.8 percent of their value in the year that ended March 31.
It has since bounced back from its sub-$2 level after shrewd Wall Street investors figured out that the company's $1 billion-plus worth of cash and securities were worth more than the share price.
But CMGI has fallen painfully far from its peak of over $160, when it made its name catching the early wave of dot-com mania, reaping huge profits from its @Ventures unit's investments.
In January, CMGI took a $2 billion write-off for faltering investments. And with the once-manic market for Internet IPOs moribund, investors seem to lack confidence that a company that made its name investing in and spinning out start-ups can successfully adjust to life as an operating company running units such as the NaviSite Web-hosting business, the Internet search engine AltaVista, and Activate, a concern that delivers streaming content.
"We don't know what it is anymore, or what it wants to be when it grows up,'' Steve Frankel, an Internet analyst with the Boston investment bankers Adams, Harkness & Hill, said last month.
PETER J. HOWE
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