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To: Paul Senior who wrote (22481)	11/11/2005 12:25:10 AM
From: Madharry	Respond to of 78740

I was burned pretty badly on LDP as well. But it was tough to know that the company had a huge investment relative to its equity in worldcomm bonds as they didnt disclose components of the bond portfolio which was supposedly a rated or better. and of course at the time we couldnt forsee that telcom suppliers were going to lose 95% of their market cap. To answer what I think is your question i believe that private companies they value their holdings in at cost. public companies they mark to market. I believe that they assign no value to out of the money warrants unless there is some market for them. Now although they mark the shares in public companies to market I am sure that many of them do not trade huge volumes. The profits probably from both realized and unrealized gains in their portfolio. If they are marking to market they have to record income somewhere or the books dont balance.By my last calculation the discount was slightly less than 30%, so if you believe gold prices to increase it seems good to go.

To: Paul Senior who wrote (22481)	11/11/2005 12:36:13 AM
From: Madharry	Respond to of 78740

I was burned pretty badly on LDP as well. But it was tough to know that the company had a huge investment relative to its equity in worldcomm bonds as they didnt disclose components of the bond portfolio which was supposedly a rated or better. and of course at the time we couldnt forsee that telcom suppliers were going to lose 95% of their market cap. To answer what I think is your question i believe that private companies they value their holdings in at cost. public companies they mark to market. I believe that they assign no value to out of the money warrants unless there is some market for them. Now although they mark the shares in public companies to market I am sure that many of them do not trade huge volumes. The profits probably from both realized and unrealized gains in their portfolio. If they are marking to market they have to record income somewhere or the books dont balance.By my last calculation the discount was slightly less than 30%, so if you believe gold prices to increase it seems good to go.