CMGI (CMGI) has also been started as a BUY rating at boutique firm WR Hambrecht.  The research note indicates an implied $2.50 price target.  Even though this is a boutique research call, it is important in that this is the first widely recognized brokerage firm that has picked up coverage in the name in a long time.  A very very long time.

The research report is not concerned about the loss of the H-P business in the ModusLink unit because the report says it has the ability to deliver operational efficiencies with its supply chain management solutions and services and that it is well suited to the technology industry.

Interestingly enough the report also notes a "TRANSFORMATIONAL CHANGE" regarding the company, which sure sounds familiar.  We had noted in the recent past ahead of earnings how the company was transforming itself and even noted how well the company performed last week despite a horrible stock market.  Shares are up more than 6% at $1.69 to $1.70 and has seen more than 225,000 shares pre-market.  The 52-week trading range is $0.98 to $1.73 and the market cap as of the close was $774 million.

This has been an interesting company to follow since we noted "The New CMGI, Running Profitably" back in early December.  The company also made the $2 million investment into Earthanol that we covered earlier and it has been more active of late in its alternative energy ventures.

So far, the CMGI transformational move has had very little impact on two of the other old incubator companies Internet Capital (ICGE) and Safeguard Scientifics (SFE).  These companies are decoupled and have been for some time, but traders will try to tie together almost anything they can when one move starts to work.

Jon C. Ogg
March 9, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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