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ModusLink Global Solutions, Inc. Message Board

  • rygf rygf Jan 17, 1999 10:14 PM Flag

    What to do if you purchased CMGI @ $154

    Is there anyone else out there besides me who
    purchased post split at $154-$155 ? Shame on me ! Seems
    everyone else is in cheaper. I am a Long term investor,
    and usually unfettered by dips - but this dip is
    extreme by any standards.

    My question, to
    anybody kind enough to reply, is :

    Is it better
    for me to sell now and hope for a further dip /
    buyback opportunity, or should I just hold for now
    Will this stock realistically hit $ 155 again ? Is
    there any consensus regarding just how far it will
    continue to drop ?

    These are questions we all are
    probably asking, but I would be greatful for any response
    along with supporting rationale.

    Best of
    luck to all ! Thanks .

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Actually, the strategy for anyone who bought
      above 120 is very have one of three
      a) Average down...assuming you have more cash,
      simply buy the same number of shares at this now very
      reduced price (you can also now think of your purchase as
      a buy at say 108, assuming you bought at 120, then
      again at 96).
      b) Be a long-term investor and
      hold...classic case of if you believed in these guys at 120, you
      gotta also believe at 95 (business model hasn't
      changed, mgt hasn't changed, etc).
      c) Sell your shares
      at a loss.
      I can tell you, from enough years of
      doing this, that option a (averaging down)is the most
      beneficial in both the short and long term and is the best
      way to quickly recoup. It does take a bit of balls to
      do, but you will be rewarded by this strategy. Next
      best is option b and just wait out what will be a
      longer term win. Option C is a guaranteed loss and will
      only make the tax man, your broker and the shorts
      happier!! Average down or hold is the only way to play this
      current situation.

      • 1 Reply to swisstrader1
      • Let me tell you my story. I bought about 50K
        amazon stock in
        September when it had peaked to
        about 128, just before the fall to 65. I then averaged
        down and bought more shares at about 80. However, when
        the stock did nothing for a few months, I sold all
        for about 95. Now amazon split adjusted is trading
        far above even the initial 128 dollar purchase.

        So I agree with this poster. Averaging down or hold
        is by far the best strategy in a stock with future
        growth potential.

        Jonas Adams

    • Patience is a virtue. Go to
      message board and read some posts there. You will be
      convinced to stick around for long term growth.

      my example in buying into the momentum. I did that
      last year on emotion rather than just waited for a
      profit profit taking. Last year, just prior to GCTY IPO,
      CMGI started its previous record run, I got caught up
      to the momentum and bought 36 shares for my Roth IRA
      account at $85 (presplit). CMGI promptly went higher to
      $91+. After that, it was all down hill.

      I have
      done a lot of research on CMGI and know that it's a
      great play in internet stocks. I view it as an internet
      mutual fund. That was the main reason why I never sold
      my shares below what I bought. I hung on and hung on
      longer as I saw CMGI went lower and lower. It was like
      an avalanche. Well, CMGI finally dropped all the way
      to $35 1/8 on that faithful day that I emailed my
      sister to tell her buy more since I thought it was the
      bottom. It was October 8th, 1998. I wished I had more
      money at that time to buy more, but unfortunately, I
      had a margin call for about $5K. Yes, it was very
      scary, just like last week. Unfortunately for My sister,
      she didn't buy any of my recommendations (CMGI @
      $35+, INKT @ $53+, and DELL @ $40+). It was I who told
      her to wait, though. I emailed her in the morning,
      but buy noon, as the market continued to slide, I got
      scared and told her to wait. It probably was a good idea
      to wait anyway since you don't want to catch a
      falling knife. It is extremely difficult to catch an
      absolute bottom, but I came pretty close. The next day,
      the market rebound because Greenspan lowered interest
      rate (I can't remember the exact detail). Heck, if my
      sister just took the plunge anyway after CMGI, INKT, and
      DELL started to rebound, then she would be in great
      position right now. I guess it wasn't her time. She and
      her husband are ultra-conservative in my book. They
      have a margin account, but dont' want to take a chance
      when great opportunities knocked on their

      The moral of this story is that "patience is a

      I don't have a crystal ball, so I don't know where
      CMGI may be a month or two from now, but I believe in
      CMGI and its management a lot (especially David
      Wetherell) that I know for sure CMGI will be one of your
      best returned stock ever in the next 5 to 10 years.
      Stick around and enjoy the profit. Buy only the money
      you don't need and stop worry about the short term

      Good luck to all.


      P.S. I bought my
      first shares of CMGI for my wife's Roth IRA account in
      March, 1998 at $55 1/6 (2 splits ago) and sold at $74.50
      (after one split) for a cool $15.5K gain. I then bought
      back some for my IRA account and her new Roth. I also
      bought a small amount at $46 (presplit) and sold at $53
      1/4 (too early - these were just for quick profit).
      Just last December prior to earning, I decided to buy
      a bunch on borrow money at mostly around $73+ and
      then bought more at $119 (both presplit). My latest
      purchase was at $129.50, which I am in the RED.

      intend to stay with the CMGI

    • I think I've got you beat. I paid $156.45/share
      when you add in the commission. I probably paid more
      than anyone on this board...I guess I got a little
      anxious. I'm a fairly new trader, but I think I just
      learned a valuable lesson...TO BE PATIENT.

    • Hey! That's my stock you bought. I still hold my split shares &
      it'll be back.

    • Hold on tide and don't sell , you lost all that
      and you want to sell now, are you crazy , i have seen
      this stock how it zooms, a week before in one day went
      up 70 dollras, so do not panic, i don't think it
      goes lower then thsi , it might goes down couple more
      dollra , the it will be back with vengence, belive me ,
      i have seen this stock, it hase been spilited 2
      times last year so be pationt and you will benefit

    • CMGI was shooting up like a rocket when I bought
      in. Actually it was at 165 pre-split. Also bought
      BFLY just after a 40-50% gain (6 3/4 from 4), it went
      to 24 two weeks later. You just don't know about
      these internet stocks.

      All the guys on this
      board talking about buying on dips must be
      millionaires. I have yet to learn when a stock has bottomed or
      peaked. At some point you just have make the plunge.

      With the internets its hard to tell the difference
      between a dip and a "semi-permanent" correction until the
      correction is made (see charts for MZON, BFLY, SKYM, UBID
      and many others) . And big runups are often followed
      by more big runups and then another big runup or

      So don't feel bad, nobody can predict
      these internet stocks. The way CMGI bounces around you
      may be able to sell at 155 Tuesday morning and then
      get back in at 100 after lunch.

      Good luck. We
      all need it.

    • Looked technical chart and it indicated a buying
      signal for this Stock. It might take another two months
      back to 154.Listen to Dines, buy Internes! He did
      suggest to buy CMGI. As a long investor, I believe that
      CMGI, Yhoo, Amzn will achieve 600% or above return in
      1999. Short term trader can't get it because they will
      miss oportunities!!! I am going to buy more CMGI on

      • 1 Reply to sampras631
      • I can't believe people think that internet stocks
        are finished. That is crazy. Look at the list of
        "major" internet stocks. It is a very very short list.
        This media/store front/??? is much larger than just
        the firms involved so far.

        Will more come into
        the picture? Yes, and CMGI will be the

        I can hardly wait until the mergers and
        acquisitions start in this industry. The AOL and Netscape is
        just the beginning. I think we will see internet
        company buying a major (I almost said Fortune 500)

        Also, the Fortune 500 are moving into the
        internet. Can you imagine the deals that the current "top
        internet" companies will be able to cut. There will be
        sales people in the internet companies jumping for joy.
        I wish them well and hope they make a ton of money
        as a shareholder.

        The internet is just
        beginning, but increasing 67,000 people per day. Even at the
        highest prices you want to get in.

        CMGI is cheap
        at these prices.

    • Are you heavily invested meaning do you have a
      large chunk of your portfolio in it. If so you might
      want to lighten up a bit on the next run up...
      Unfortunately, you got in at the worst time...Not to worry
      though, sooner or later CMGI will surpass 155...This
      company is an aggressive internet play.I don't believe
      the internet stocks have lost their steam...The stock
      can't just go straight up...

      Abby Joeseph Cohen
      thinks internet stocks are valued correctly!
      They are
      certainly a wild ride (especially if you own options on
      them)...good luck!

    • You have several options:

      1. You can
      average down your cost basis by purchasing more shares on
      further dips, and wait for the next big rally (which will

      2. You can sell and take your loss (which I don't
      think would be a good idea at this point).

      You can just hold on to what you have for the long
      term, which will reap you great rewards if you have the

      And remember, never buy into the rallies, wait for
      the dips -- they'll come to you!



      • 1 Reply to KenStarrforPresident
      • it has been very hard to determine dips with the
        internet stocks. Sure, 10 to 20 point down days come and
        go, but prolonged drops are tough.

        I say,
        CMGI is a core holding if you like / believe the
        internet. If you bought at 155, hold on. It will be a solid
        investment. I say that holding shares at $45 and loving every
        minute of it. Even the last week.


    • i also bought at 150 after the split and
      crying....made so much money on amzn and now all gone. I will
      continue to hold my securties until i get even. There is a
      big potential that this stock is going to where it
      was just based on my research and watching fellow
      investor in this board.

      good luck!!!!

      much shares did you buy at 154 anyway?

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