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Technology Stocks : GX Investors Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sweet Ol who wrote (48)	8/21/2001 10:12:56 AM
From: BWAC	Read Replies (2) \| Respond to of 586

<My point was that if you assume the replacement cost (a rough estimate of the fair market value) is 50% of book value, > Again, I respectfully think you are not considering what all makes up the $11.8 Billion of Property and Equipment. Which is a depreciated number already. Hence already somewhat reduced. In addition, GX built the network over time, just as component prices fell over time. GX continues to add to functions to the network, at todays costs, and capitalizing those costs adding to Property and Equipment. It is a given that the raw component prices have fallen. BUt a batch of purchased raw components are worthless until they are assembled into a working connected network. The significant costs to assemble the components certainly have not decreased. Nor have the Landing License fees as someone pointed out. All of this is Property and Equipment. <It is my understanding that writing down impaired assets is somewhat arbitrary and not that easy to do. Also it is somewhat optional.> I find it quite clear cut in direction and mandatory. However it can become very complicated to determine exact values of large systems. Just remember the balance sheet numbers you see are by definition conservative estimates. The offices in Bermuda or the Landing Licenses may have in fact increased in value. But they are recorded at lower of cost or market. (Ie Cost being the lowest and most conservative number).