CMGI (NASDAQ:CMGI) reported earnings for its second fiscal quarter after the bell on Monday. Wasn't that one of those high-flying Internet stocks of yesteryear, the kind that was foaming at the mouth with valuation froth? Yes, indeed, it was.

Net revenues for the quarter increased 9.2% to $318.8 million. An operating loss of $1.7 million was reported against an operating profit of $10.8 million one year ago. CMGI lost $2.9 million ($0.01 per diluted share) from continued operations versus a profit of $9.2 million ($0.02 per diluted share) in the second quarter of 2005.

For the six-month period, net revenues increased 14.1% to $622.3 million. Operating income decreased 95.5% to $0.6 million. Income from continued operations for the company was $1.9 million ($0.00 per diluted share) versus $8.5 million ($0.02 per diluted share) last year, representative of a 77.9% decrease.

CMGI is something of a complex entity that engages a lot of investment activity in the technology sector -- it has a venture capital division, and it works its supply chain/customer service magic via subsidiaries SalesLink and ModusLink. While tech may be relatively hot these days, I'm not sure whether long-term investors would want to use any of their hard-earned capital to pick up some of CMGI's low-priced shares.

My main issue with the company is its cash flow. According to the latest annual report, CMGI's continuing operations used up cash in the following approximate amounts for the years 2003, 2004, and 2005, respectively: $67 million, $19 million, and $13 million. As can be seen, the company's situation is indeed improving with respect to this metric. I can't deny the positive trend.

Yet, do I want to own CMGI? I'd have to say no. While the company has constructed a portfolio of assets, those assets don't create much value. In fact, most metrics fluctuate from quarter to quarter: cash flow from operations, gross margins, net income, etc.

It may be a cliche, but there are just so many better alternatives out there. Then again, with a stock like CMGI, the only interest that tends to be rustled up is of a speculative nature. Is it possible that the company will eventually see some free cash flow and, thus, see its stock go on the proverbial tear? Anything's possible, but I just don't see the need to bet on this situation.

Related Foolishness:

Fool contributor Steven Mallas owns none of the companies mentioned. The Fool has a disclosure policy.