One of Silknet’s major investors also recorded a nice gain on Friday. Internet company incubator CMGI (Nasdaq: CMGI) climbed more than 7 percent, rising 6-15/16 to 103-5/8. In addition from benefiting from the rise in Silknet’s stock price, CMGI split its stock 2-for-1 on Friday.
CMGI has been hit hard in the recent Internet selloff, but there are many who expect much better days for the company, which is a primary investors in numerous Internet companies including leading portal site Lycos. Last Tuesday, Prudential rated CMGI a strong buy and set a pre-split price target of $280, which translates to a post-split target of $140.
This might not be the best time to jump into Internet stocks, but CMGI seems like a good long-term play because it is heavily invested in various facets of the Internet, including content, community and commerce. While it’s uncertain if CMGI will be higher one week from today, the company will be one of the biggest beneficiaries when investors start putting their money back into Internet stocks.