Stocks Under $10: CMGI (CMGI)

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By Douglas A. McIntyre Updated Published
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CMGI Inc. (CMGI) has just become eligible under the "10 under $10" with yesterday’s drop to $9.97. The shares are slightly above $10 today 

The company just recently began trading without the "D" as CMGID after its reverse stock split.  Wall St. is still cautious as the main operations of the company are in the ModusLink "supply chain" business. It doesn’t take a rocket scientist to be cautious about any aspect of logistics in a slowing economy when transports have remained quite negative. 

Stocks that go through reverse stock splits often have a contrary impact from what they intended: lower share prices, mainly from short sellers.  Investors seem inclined to stay on the sidelines a bit longer with CMGI, even if this is technically back under $1.00 based on the pre-reverse-split share prices. 

The reports earnings on December 3, and caution seems to dictate against jumping in ahead of what will be a tough quarter to please even cult stock investors.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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