From: Linda (email@example.com)
Date: Fri Oct 06 2000 - 10:26:15 PDT
[Adam, Jeff, could this be a bottom? If you check the intraday charts,
there is huge buying volume this morning; total volume so far is
already nearly triple the average daily volume. Some of this is likely
short covering, but all bottoms start that way :)
Some definite good news: DW is buying stock at market price, and he
confirms that CMGI's cash position is solid.
Friday October 6, 10:59 am Eastern Time
CMGI Chairman and CEO David Wetherell Purchases 250,000 Company
Shares on the Open Market
ANDOVER, Mass.--(BUSINESS WIRE)--Oct. 6, 2000--CMGI, Inc. (Nasdaq:
CMGI - news), a leading global Internet operating and development
company, today announced that Chairman and CEO David Wetherell has
purchased 250,000 shares of the company's stock on the open market.
Commenting on the purchase, Wetherell said, ``As stated 2 weeks ago
during our quarterly earnings report, CMGI is on a strong growth
path with a well-diversified network of revenue-generating companies.
The combination of the strong market position of our six business
segments, our accelerating path to profitability, and our ample cash
and available-for-sale securities gives me great confidence in
Additionally, CMGI Chief Financial Officer Andrew Hajducky recently
exercised options to purchase 120,000 shares of CMGI stock and will
hold the shares.
CMGI says cash position strong
By Ted Griffith, CBS.MarketWatch.com
Last Update: 11:58 AM ET Oct 6, 2000
ANDOVER, Mass. (CBS.MW) -- CMGI said Friday that it has a strong
financial position and that it also expects its expenses will
decline as a result of recently announced consolidation and layoffs.
Andover, Mass.-based CMGI said its consolidated cash position as of
July 31 was $654.2 million, supported by available-for-sale
securities of $1.6 billion.
The Internet investment and operating company said it was issuing the
statement in response to what it called "contradictory reports" about
its financial situation. CMGI, once among the stock market's highest
fliers, has seen its stock slide in recent months partly because of
concerns about its mounting losses.
CMGI (CMGI: news, msgs) shares touched a 52-week low of $18.31
following the announcement. Shares recovered in recent action,
rising 13 cents to $21.63.
Since the beginning of the year, CMGI shares have plunged more than
"At our current cash burn rate, which we plan to reduce over the
next six months, we currently have enough cash and cash equivalents
to support our ongoing operations and investment requirements for
approximately two years," David Wetherell, CMGI's Chairman and CEO
said in a statement. "This does not take into account the potential
for future liquidity events within CMGI Ventures' holdings, which can
add significantly to our sources of available cash."
CMGI also said it sees a reduced cash burn rate. "Management
anticipates that operating cash burn rate will decline significantly
over the next six months due to reduced expenses, realized synergies
and efficiencies within its operating companies, and intra-company
mergers," the company said in a statement.
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