The Night Watch: CMGI Glitters on Strong Third-Quarter Results - TheStreet

What does 417% mean to you? Probably not much, but for CMGI (CMGI) , it adds up to a healthy postclose gain.

The company's record third-quarter

results boast a 417% increase in operating revenue compared with last year and narrower-than-expected losses. The stock rose 3 13/16 to 60 7/16 on 300,000

Island

shares.

CMGI's news is auspicious for the dot-com sector, as the Internet incubator has birthed many firms and currently has about 70 Internet companies under its wing.

Microsoft

(MSFT) - Get Report

was back in the spotlight after its spat with the government took a new but largely expected turn. The software Goliath announced after hours that it filed an appeal notice for the court decision to halve the haughty Redmond child into the mighty Microsoft twins. The Gates-led empire expressed confidence about an impending victory. Investors cheered, sending Softee 2 5/16 higher to 70 3/16 on 78,000 Island shares and up 2 3/16 on Instinet.

Standard and Poor's

announced after the bell that

S&P MidCap 400

component

Novellus Systems

(NVLS)

will replace

Champion International

(CHA) - Get Report

in the

S&P 500 index after the close of trading Friday.

Novellus makes components for the semiconductor industry and rallied 4 3/32 to 55 5/8 on 38,000 Island shares.

During the day, traders squinted to see which way the market was headed.

Some advice: Get glasses, Alice!

Vision Twenty-One

(EYESE)

today rallied 3/16, or 37%, on a dearth of news. Even the know-it-all message board chatters had no inkling of why. And company officials at the Florida headquarters couldn't be reached for comment.

Vision Twenty-One manages local area eye-care delivery systems, or LADS, in 40 markets. LADS are contracts with local optometrists and eye doctors to provide vision care and surgery at independent or company-owned clinics.

All twenty-one eyes were glued to the after-hours session, where the company gave back 1/8, falling to 9/16 on 170,000 Island shares.

Although

Lazard Freres

today initiated coverage of

Internet Capital Group

(ICGE)

at outperform with a price target of 48, it traded down as much as 3 9/16 to a low of 31 1/16, then rose in tandem with the market after

Fed Chairman

Alan Greenspan's encouraging midday television appearance. Despite its late recovery, it ended almost 2% lower.

The company continued its recovery after hours, climbing 1 7/16 to 35 3/8 on 19,000 Island shares.

ITEQ

(ITEQ) - Get Report

makes equipment and components for manufacturing firms involved in the treatment, storage, or movement of gases and liquids. It also provides of maintenance for above-ground storage tanks for oil, petrochemical, water and agricultural products.

The Texas company hit a 52-week low of 3/8 June 8. It rose 1/32, or 5%, during the day on no news and edged up initially after hours, then remained flat at 9/16. Company officials were unavailable for comment.

Firms that trade under 1 for a certain length of time are in danger of being delisted from the

Nasdaq. Rumors of a reverse stock split circulated on the message boards, but the tone was not hopeful. "It will only give the stock further to fall," said one bear.

E-business software provider

MicroStrategy

(MSTR) - Get Report

today unveiled its latest product, the MicroStrategy Transactor, which allows customers to respond immediately to email pitches, wireless alerts or even automated telephone calls. For example, the technology lets an investment company's customer make a stock trade after receiving an alert from a wireless phone by pushing a button on the keypad.

The technology company has been the picture of volatility

lately. It rose almost 10% today and continued to climb 1 21/32 to 44 17/32 after Monday's punishing session.

Fatbrain.com's

(FATB)

first-quarter losses were heavier than expected. Including the

MightyWords

unit, the basic and diluted net loss was $1.00 a share. Without MightyWords, the pro forma loss was 65 cents a share, narrower than the five-analyst estimate of a loss of 88 cents, but wider than the year-ago loss of 46 cents. Pro forma results exclude revenues and expenses from MightyWords, a unit that offers digital versions of books and texts that can be downloaded to a personal computers. Last Tuesday, Fatbrain announced the separation of MightyWords as an independent, privately held company.

Confused investors chose to focus on the $1 loss and the Internet firm fell 2 3/4 to 7 on 20,000 Island shares.

Digital Island

(ISLD)

, an e-Business delivery network, this morning joined

Keynote Systems'

(KEYN)

streaming partners program. As a member, Digital Island is an early adopter of Keynote's new streaming perspective service, which measures the quality of Web-based audio and video, for live events and video-on-demand.

Program partners will provide technical feedback to Keynote. Digital Island will receive early access to the service with technical briefings on service enhancements and the chance to comment on the upcoming service plans, said a company statement.

Digital Island rose 1 3/16 to 39 on 25,000 Island shares.

This information is provided by Instinet, a wholly owned subsidiary of Reuters (RTRSY) . For further information, please contact Instinet at www.instinet.com.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EDT.

Confused?

TheStreet.com

explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.