Stock Watch: NaviSite Benefits From CMGI News

The stock of applications service provider NaviSite (Nasdaq: NAVI was a major winner on Tuesday, rocketing 16-5/8 to an all-time closing high of 74, a gain of nearly 29 percent.

The rise came one day after NaviSite announced a service provider agreement with Sun Microsystems, but it looks like what helped NaviSite stock even more was a notable announcement from its parent company CMGI (Nasdaq: CMGI).

CMGI announced that it is forming CMGI Solutions, a new company that will provide end-to-end e-business solutions. CMGI Solutions will use NaviSite's services to power online businesses. Despite this news, NaviSite's performance on Tuesday is a bit surprising. There could be some other news brewing with NaviSite.

NaviSite stock has been a big winner since the company went public at $14 a share on October 22nd. Considering how well Internet infrastructure stocks are doing right now, NaviSite looks like it could keep climbing.