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To: xcr600 who wrote (647)	5/20/1999 7:45:00 PM
From: Glenn Petersen	Respond to of 737

I took a quick look at the most recent CMGI Form 10-Q and CMGI runs their gains and losses through the income statement only when they sell the securities. They do mark up the securities, but as you suggest, they factor in a discount for taxes and transferability issues. The unrealized gains are recorded in the equity section of the balance sheet as "Net unrealized gain (loss) on available-for-sale securities." The balance in this account was $484,930,000 at January 31, 1999 and $(436,000) at July 31, 1998. Nice six months. From the Form 10-Q: "Available-for-sale securities are carried at fair value as of January 31, 1999, based on quoted market prices, net of a market value discount to reflect the remaining restrictions on transferability on certain of these securities. A net unrealized holding gain of $484,930,000, net of deferred income taxes of $338,179,000, has been reflected in the equity section of the consolidated balance sheet based on the change in market value of the available-for-sale securities from dates of acquisition to January 31, 1999."