Headline FeedsLeading Internet incubator CMGI (Nasdaq: CMGI) dropped 14-5/16 to 74-7/16 on Tuesday. Two days later, it looks like the worst may be over. CMGI closed up 3-3/8 to 96-1/2 on Thursday after BancBoston Robertson Stephens upgraded the company from accumulate to buy.
If the Internet sector recovery lasts, CMGI will be a big beneficiary because it is heavily invested in numerous Web business from Lycos (Nasdaq: LCOS) to e-mail hosting solutions provider Critical Path (Nasdaq: CPTH). Shares of Critical Path were also a big gainer on Thursday, rising 7-7/8 to 44-3/4 after BancBoston Robertson Stephens reiterated its buy rating on the company. In addition, BancBoston Robertson Stephens is bullish about CMGI because of the upcoming IPOs of two of the incubator's investments: online advertising company Engage Technologies and e-business outsourcing company NaviSite. CMGI looks more solid than most Internet companies because its success doesn't hinge on one or two business models.
