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To: Bonnie Bear who wrote (2821)	7/8/1998 12:54:00 AM
From: Bilow	Read Replies (1) \| Respond to of 86076

Hi Bonnie Bear; If a company has insufficient cash to pay its immediate creditors, the company can be forced into bankruptcy. This is irrespective of book value or sales, it is just a matter of the court system. If you don't pay back a creditor, the creditor can force you into bankruptcy. Of course that doesn't mean the company will cease to exist, and that the shareholders will lose all, but it isn't way to start the day. About that book value, this is more important than the P/S, for a bankruptcy play, in my opinion. The problem is that some of the stuff on the books can be worth less than the carrying cost. Typical is companies that buy a lot of other companies, so you get good will... No question that CRWN should close its doors and reopen as an internet only company, though. (Check out EGGS if you doubt the seriousness of what I just said. :) Some of the guys in the office were trading it today. But I was too late, and I hate showing up late for parties. Daytrading is a very slim margin business, and you just can't consistently make money on positions that you are late to enter. -- Carl

To: Bonnie Bear who wrote (2821)	7/8/1998 2:31:00 AM
From: S. maltophilia	Read Replies (1) \| Respond to of 86076

<<I can't imagine a company selling at less than 0.1 book value and 0.01 p/s going bankrupt>> Their book value appears at first glance to be ~$6/share. But I would give their inventory a nice haircut. What I've seen of it is of fairly low quality--much of it out of date and missing a lot of important current titles. Now books can be returned to publishers most of the time, but only for credit. That may help pay some of the bills, but it won't help if the company is liquidating and has no future purchases to make. Furthermore, they have to ship the books back at their expense and that's a lot of tonnage. What they can get out of what they are not returning will not be much. I would also discount the value of their equipment and fixtures. The last thing the world needs is surplus bookstore fixtures. BKS & BGP have all the furniture they need, the independents are a dying breed, and AMZN surely doesn't want them. I need a few shelves; hope I can get some cheap when they close their store near me. I haven't yet seen the press release (if any) regarding Lincoln the Liquidator, but it seems that this takeover is the equivalent of the repo man. It is truly outrageous that this stock was pumped tenfold this week. I think there will be precious little for the shareholders when this is all said and done. The pumpers deserve to be under the jail for this sordid little episode.