Shares of NaviSite (Nasdaq; NAVI), the latest CMGI subsidiary to go public, had a strong opening on Friday. NaviSite, an applications service provider that offers Web site hosting and e-commerce services, priced 5.5 million shares at $14, the high end of its revised range of $12 to $14 after an original range of $10 to $12. The stock opened for trading at 28-1/8 and climbed as high as 47 before closing at 34-5/8. The 20-5/8 gain from the offering price represented a climb of 147 percent.
NaviSite’s foundation seems pretty solid. In addition to CMGI, NaviSite’s investors include Microsoft and Dell. NaviSite, of course, benefits from business from CMGI’s network of Internet companies, including AltaVista. NaviSite’s other customers include Levi Strauss. In addition, NaviSite has strategic partnerships with companies including Oracle, Cisco Systems, Sun Microsystems and Compaq. With Internet infrastructure as hot as it right now, NaviSite should be a stock to watch.