Weird CMGI Expectations
from the let's-be-realistic-here dept
CMGI announced excellent earnings today, and the stock collapsed. What I thought was interesting about the article is the fact that some of the analyst estimates were based on ignoring the profits made from “liquidity events”. Let’s face it, CMGI’s main business these days is as a venture firm, and their real revenue is going to come from returns on investments, mostly made through liquidity events, such as the companies they funded going public, and them selling off a nice bit. So, why would it ever make sense to ignore that income in analyzing CMGI? Oh well. Guess it’s a good thing that I never became a stock analyst.
