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To: H James Morris who wrote (144040)	7/22/2002 1:00:00 PM
From: Oeconomicus	Respond to of 164684

What am I missing? Perhaps that the assets aren't worth $104B? I'm sure they aren't. In fact, the company said months ago that they'd be writing down the goodwill on their books, which, if memory serves, was as much as half the total. Of course, the "experts" opining on the value now are suggesting "pennies on the dollar" or around $15B, but that's a load of sensationalized crap too. Assuming they had any basis for the figure at all (a big assumption since we're talking about journalists), they had to be talking liquidation value. Well, if you aren't liquidating, that doesn't really matter - even to a BK judge. Going concern value is based on cash flows, not what a bunch of other near-busto communications companies might bid if they had any money to bid with. So, what's the real value of the assets? Whatever the BK judge says it is. Bob

To: H James Morris who wrote (144040)	7/22/2002 4:21:01 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 164684

HJ, how 'bout this one? biz.yahoo.com HPL Technologies Inc. said it has uncovered a massive accounting fraud involving "fictitious transactions" and "falsified documents" that was apparently orchestrated by its founder and former chief executive, David Lepejian. The San Jose , Calif. , software start-up, which went public a year ago, also said much of the money reported as cash on its balance sheet "is not now, and may never have been, in the company's possession." ... At least $11 million of the $13.7 million HPL reported as revenue in the fiscal fourth quarter ended March 31 was based upon "fictitious transactions supported by falsified documents," said Mr. Antoun, the head of HPL's audit committee. Audit committee? What audit committee?