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To: Kirk © who wrote (2138)	11/11/2002 1:33:04 PM
From: Charles Tutt	Respond to of 4345

Book value has little to do with liquidation value (nor any other value, for that matter). JMHO. Charles Tutt (SM)

To: Kirk © who wrote (2138)	11/11/2002 2:55:59 PM
From: Oeconomicus	Respond to of 4345

Kirk, a big chunk of WCOM's book value was slated to be hacked away as they wrote off goodwill from their many acquisitions over the years, but yes, there should have been substantial value remaining. Of course, you next have to deduct for the $3.8 billion of operating expenses that were capitalized and the rest of the past overstatements of profits. Then there's the question of whether depreciated historical cost of all their fixed assets fairly represents their market value (even if you ignore the "distressed" seller discount, much of it might be replaceable at a much lower cost today). But the most important question for WCOM shareholders is whether the court and the creditors will allow them to retain anything, even if one could show the assets have value, as a going concern, that exceeds liabilities. And even if there is anyone fighting for the shareholders (there is no equity holders' committee, AFAIK), most in management and certainly Capellas can be made just as rich from salvaging value out of WCOM whether or not they salvage any of it for the current shareholders. BTW, of all the management and directors remaining, Sidgemore had the most incentive to salvage value for the shareholders as he owned, as of April 5, over 5.5 million shares. But even if he got the stock back to $2, that's still small compared to his net worth and to what Capellas could get paid by a company owned 100% by the creditors. Heck, it's less than what Carly paid him to leave. ;-( I hope I'm way off base, BTW. Bob