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arnold-j/deleted_items/415.
|
subject: Expense Reports Awaiting Your Approval
content: The following reports have been waiting for your approval for more than 4 days. Please review.
Owner: Henry H Quigley
Report Name: Quigley 100301
Days In Mgr. Queue: 8
| ||
arnold-j/deleted_items/417.
|
subject: Expense Reports Awaiting Your Approval
content: The following reports have been waiting for your approval for more than 4 days. Please review.
Owner: Henry H Quigley
Report Name: Quigley 100301
Days In Mgr. Queue: 7
| ||
arnold-j/deleted_items/418.
|
subject: RE: Telephone Interviews: Trading Track
content: All -
Thank you for your participation in the phone screen process.
As all the screens should be completed by tomorrow evening, please let me know if you are having any difficulties I might assist you with.
Please e-mail Karen or me with feedback as to whether or not you think the candidates you screened should be brought in for an interview.
Thanks,
Adrianne
x57302
-----Original Message-----
From: Buckley, Karen
Sent: Wednesday, October 10, 2001 2:53 PM
To: Neal, Scott; Presto, Kevin M.; Ermis, Frank; Forney, John M.; Shively, Hunter S.; Sturm, Fletcher J.; Gilbert-smith, Doug; Allen, Phillip K.; Arora, Harry; Arnold, John; Lewis, Andrew H.; Davis, Mark Dana
Cc: Lavorato, John; Engler, Adrianne
Subject: Telephone Interviews: Trading Track
Guys,
You have been selected to complete the telephone screening of external candidates for second and final round. Each candidate will be screened by two traders to ensure agreement on quality of candidates. (these resumes have already been selected from c. 200 resumes by some of the ENA Traders).
As in the previous Trading Track recruiting event, you will be given a few days to complete this. The candidates will be expecting your call, there is no set interview time therefore allowing you flexibility to call in the evening from home if necessary. Resumes, telephone numbers etc will reach your desk tomorrow morning. All phone screens to be completed by Tuesday pm: 16th October.
Any questions please call myself or Adrianne Engler.
Thanks,
Karen.
x54667
| ||
arnold-j/deleted_items/419.
|
subject: Expense Reports Awaiting Your Approval
content: The following reports have been waiting for your approval for more than 4 days. Please review.
Owner: Henry H Quigley
Report Name: Quigley 100301
Days In Mgr. Queue: 12
| ||
arnold-j/deleted_items/42.
|
subject: SME Meetings Status
content: Team
We are doing much better with interviews (See below). Thanks & keep up the good work. Please complete assignments on time. In addition, we need each SME as a minimum to allot 4 hours a week towards this project, which will significantly increase the potential for the end product to "Exceed the Mark & Expectations."
Quote for this week: "One should always bloom, where one is planted."
Have a great weekend and I hope to see all of you on the Oct 24th Boat Ride.
Thanks for your great efforts thus far.
Cheers
Kirk
---------------------- Forwarded by Kirk McDaniel/HOU/EES on 10/05/2001 03:04 PM ---------------------------
[email protected] on 10/05/2001 10:37:27 AM
To: [email protected]
cc: [email protected]
Subject: SME Meetings
Meetings Completed Future Meetings Scheduled
Phillip Allen 8 2
John Arnold* 0 0
Dutch Quigley 5 0
Berney Aucoin 5 1
Andy Lewis* 3 1
Ed McMichael 8 1
Mark Reese 6 2
Jeff Gossett 1 0
*John will engage once content is being produced.
*Andy did not show up for his 10/4 mtg. so he did not learn how to use the
electronic content workbook for the Knowledge System
Hours By Week
Name 8/27-9/4 9/5-9/7 9/10-9/14 9/17-9/21 9/24-9/28 10/1-10/5 Total
Phillip Allen 0 2 4 1 4 3 14
John Arnold 0 0 0 0 0 0 0
Dutch Quigley 0 0 2 2 2 4 10
Berney Aucion 0 0 2 2 1 2 7
Andy Lewis 0 2 2 2 0 0 6
Ed McMichael 2 0 0 4 4 4 14
Mark Reese 0 0 2 2 3 3 10
Laura de la Torre
Accenture
Resources
Houston, Texas
Direct Dial 713.837.2133
Octel 83 / 72133
This message is for the designated recipient only and may contain
privileged or confidential information. If you have received it in error,
please notify the sender immediately and delete the original. Any other
use of the email by you is prohibited.
|
SME@ENRON <??SSME@ENRON>
|
|
arnold-j/deleted_items/420.
|
subject: NYMEX
content: Hey hon-
I'm gonna be in NY on Oct 29- Nov 2. Can you get us into NYMEX to take pictures? Let me know if I can do anything to help facilitate it. THANK YOU!!!!!
What's up with you this weekend? I'm meeting my sister for drinks right after work. MSA
| ||
arnold-j/deleted_items/421.
|
subject: To: All Domestic Employees who Participate in the Enron Corp
content: October 26 is fast approaching!
Mark your calendar--
as the Enron Corp. Savings Plan moves to a new administrator!
As a Savings Plan Participant, Friday, October 26 at 3:00pm CST will be your last day to:
? Transfer Investment Fund Balances and make Contribution Allocation Changes
? Change your Contribution Rate for the November 15th payroll deductions
? Enroll if you were hired before October 1
TWO important reminders:
? Vanguard Lifestrategy investment options are being replaced with Fidelity Freedom funds and;
? Your funds will remain invested in the funds chosen as of 3:00pm CST until 8:00 am November 20.
At 8:00 am CST, November 20 the Savings Plan system re-opens with great new features.
Should you need assistance during the transition period, call ext. 3-7979 and press Option 6. This option will be available from 8:00am CST October 29 until 5:00pm CST November 19.
Enron Benefits... keeping pace with your lifestyle.
|
All Domestic Employees who Participate in the Enron Corp
|
|
arnold-j/deleted_items/422.
|
subject: ALL daily charts and matrices as hot links 10/23
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. ? 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude23.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas23.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil23.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded23.pdf
Dec WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clz-qoz.pdf
Dec Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf
Dec Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf
Dec/May Heat Spread http://www.carrfut.com/research/Energy1/hoz-hok.pdf
Jan/Feb Heat Spread http://www.carrfut.com/research/Energy1/hof-hog.pdf
Nov Gas/Heat Spread http://www.carrfut.com/research/Energy1/hux-hox.pdf
Dec Gas/Heat Spread http://www.carrfut.com/research/Energy1/huz-hoz.pdf
Nov/Mar Unlead Spread
http://www.carrfut.com/research/Energy1/hux-huh.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG23.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG23.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL23.pdf
Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606
| ||
arnold-j/deleted_items/423.
|
subject: WineCommune Fee Update
content: October 22, 2001
Dear WineCommune Member,
The WineCommune community has grown over the past three years from an informal message board for buying and selling wine, to an impressive worldwide exchange with a user base of over 10,000 members. Since 1999, we have been proud to offer you free membership and no-cost usership. WineCommune now has the second largest membership base and it is the third largest Internet wine auction company by volume. We have built a business that is secure and reputable, with a client base of loyal users whose participation and feedback have helped us become what we are today.
We want to go further and provide you with an even better place on the Internet to buy and sell wine. We want to add more features, make the site faster, and make it more secure. In order to do that, however, we have to begin charging a modest commission. Beginning with lots posted on Monday, November 5, 2001, sellers will be charged a 3% commission for all successful auctions. Bidding and buying will remain free - fees only apply to the seller. The new fees are the lowest in the wine auction industry - online or offline. Other wine auctions charge as much as 12% to the buyer AND 12% to the seller.
What are we going to do with the commission? Over the next several months look for the following new services:
1. Increased advertising to attract new members
2. Enhanced customer service
3. Platinum Seller Program - a way to reward sellers with proven track records
4. Greater protection for buyers
5. New ways to buy and sell
We believe the new charge to sellers is competitive and fair, and hope you agree. With this change, we are committed to providing you with the fastest and easiest method for selling and buying wine. Please continue to provide us with comments and suggestions on ways of enhancing our service. We value your membership and are grateful for your continued patronage and support. Thank you for helping us make WineCommune the #1 wine auction community.
If you have any questions, do not hesitate to contact us at [email protected].
The WineCommune Staff
| ||
arnold-j/deleted_items/424.
|
subject: Nat Gas market analysis for 10-23-01
content: Attached please find the Natural Gas market analysis for today.
Thanks,
Bob McKinney
- 10-23-01 Nat Gas.doc
| ||
arnold-j/deleted_items/425.
|
subject: Nat Gas intraday update for 10-23-01
content: Attached please find a follow up to today's Natural Gas market analysis.
Thanks,
Bob McKinney
- 10-23-01 Nat Gas intraday update.doc
| ||
arnold-j/deleted_items/426.
|
subject: (01-349) CORRECTED: Unleaded Gasoline, Heating Oil, and Natural Gas
content: PLEASE NOTE SPECIAL HOURS
Notice No. 01-349
October 23, 2001
TO: All NYMEX Members/Member Firms
All NYMEX Clearing Members
All NYMEX Floor Traders
All NYMEX Operations Managers
FROM: George Henderson, Vice President
RE: CORRECTED: Options Expiration Operational Procedures for the
Trading Floor and Clearing Members - Revised Hours
________________________________________________________________
The expiration date for the November 2001 options contract for Unleaded
Gasoline (GOX1), Heating Oil (OHX1) and Natural Gas (ONX1) is Friday,
October 26, 2001.
GENERAL OPERATIONAL PROCEDURES
All Clearing Members and Qualified Floor Traders that carried an options
position as of the close of business day prior to the expiration day, or
engaged in trading activity on Expiration Day in the expiring options
contract will be required to have a knowledgeable, duly authorized
representative present at their normal work station promptly at 4:40 p.m.
until released by the Exchange staff as specified below. All adjustments
and/or corrections, must be accompanied by relevant supporting
documentation
prior to being incorporated into expiration processing, in essence making
the expiration processing an extension of the afternoon trade resolution
procedures. All input to the NYMEX Clearing Department will conclude no
later than 30 minutes after floor representatives are released.
Exchange Clearing (299-2110), Floor Trade Processing (299-2068 and
299-2169)
personnel, as well as a representative of the Floor Committee will be
available to assist with the processing of notices of Exercise and
Abandonment, position transfers, trade corrections and other questions or
problems you may have.
CLEARING DEPARTMENT OPERATIONAL PROCEDURES
The Option Expiration process is a screen based process for which all
information is provided on the screens on C21 terminals. No Option
Expiration Reports will be provided. The following screens will assist you
through the Option Expiration process:
MEMBER TRADE INQUIRY
Contains real-time top day trade information, trade information for the
previous 4 business days and trade=s adjusted for the previous 4 business
days by adjustment date.
SINGLE POSITION MAINTENANCE
Contains a real-time snapshot for each option series from the start of day
position to the projected end of day position.
REVIEW ACCEPT REJECT TRANSFERS
Contains all trade and position transfers TO your firm and the status of
each transfer.
REVIEW SUBMITTED TRANSFERS
Contains all trade and position transfer FROM your firm and the status of
each transfer.
EXERCISE NOTICE SUBMISSION
Contains your available long position and an input field to enter the
number
of long positions you wish to exercise.
DO NOT EXERCISE SUBMISSION
Contains your available long position and an input field to enter the
number
of long positions you wish to abandon.
POSITION CHANGE SUBMISSION
PCS may be submitted either by manual input or by electronic transmission.
Any PCS input on a Clearing 21 terminal will be the input processed by the
system. This input may be made at any time prior to 5:55 p.m. Any PCS
input via transmission for that contract series will be disregarded.
ALL POSITIONS ARE DEEMED FINAL
Upon completion of all PCS input, all positions will be deemed final.
EXERCISE/ASSIGNMENT INFORMATION
Will be available to you on the Single Position Maintenance window by
contract series or the Assignment List window which contains all your
Assignments on one window. You will be notified of its availability by C21
E-Mail and by Fast Facts. This should occur within 1 hour of the last PCS
input.
All Clearing Members are required to have an authorized representative(s)
at
their C21 workstations in preparation for any communication during the
expiration process.
FAST FACTS
Clearing Members should call the Fast Facts information service 301-4871,
access code 700 for event messages advising Members of the event status.
E-MAIL
Clearing Members should read their C21 E-Mail messages immediately to be
aware of event status.
The standard event Fast Facts and/or E-Mail messages and the sequence in
which they will be announced are:
STANDARD EVENT APPROXIMATE TIME USUAL FAST
FACTS(F)
MESSAGES OF MESSAGE EVENT TIME
E-MAIL (E)
AVAILABILITY
BOTH (B)
Announce Out-of-the 4:45PM 4:45PM F
Money Exercise and In-the-Money
Do Not Exercise Submissions
Announce Final Input to C21 5:40PM 5:55PM E
Cutoff Time
All positions are deemed final 7:00PM 7:00PM F
Announce Exercise/Assignment 7:30PM 7:30PM B
Information Available on the Single
Position Maintenance Windows
All Report Distribution is 10:00PM 10:00PM F
completed
The times appearing in the Usual Event Time column are based on normal
operational conditions and could vary.
If you have any questions concerning these procedures, please contact
Anthony Di Benedetto at 299-2152 or John Ramos at 299-2142 prior to the
expiration date.
<<EXPFORMSPEC.XLS>>
(See attached file: EXPFORMSPEC.XLS)
- EXPFORMSPEC.XLS
| ||
arnold-j/deleted_items/427.
|
subject: New Power Products
content: New Power Products on ICE!!
On Friday, October 26 IntercontinentalExchange will launch Hourly Power as =
well as 2nd, 3rd, 4th Week strips. The Hourly Power will be offered for al=
l the West Power hubs and for PJM in the East. These new markets will have=
to be manually added to portfolios. The 2nd, 3rd, 4th Week strips will be=
available for all Power hubs currently available on the Exchange and will =
be automatically added to portfolios containing the Next Day strip for a pa=
rticular hub.
Credit must be set under the Financial Power credit filter for the PJM Hour=
ly and under the Power credit filter for the West Hourly markets. Hourly P=
ower markets can be arranged in chronological order in the Portfolio Editor=
window. Please call your ICE representative if assistance is needed.
Any other questions or concerns should be directed to our 24 hour Help Desk=
at 770-738-2101.
=
=
=
=
=
=
=
=
=
=
=
=
=
=20
=
=
=
=
=
=
=
=
=
=
=
=
=
| ||
arnold-j/deleted_items/428.
|
subject: ENA External Interviews
content: Good Morning John -
Below is the result of Harry Aurora's conversations with the candidates...
Please respond if you agree/disagree or other comments....
Michael Scarlata - MAYBE
Donald Timpanaro - NO
Jeffrey Zaun - YES
Thank you,
Adrianne
x57302
| ||
arnold-j/deleted_items/429.
|
subject: option candlesticks as a hot link 10/23
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. ? 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Option Candlesticks
http://www.carrfut.com/research/Energy1/candlesticks.pdf
Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606
| ||
arnold-j/deleted_items/43.
|
subject: The Daily Quote
content: [IMAGE]=09Quote.com =09 Log In | Sign Up | Account Mgt. | Insight Center=
=09[IMAGE]=09 Get Quote/LiveCharts: [IMAGE] [IMAGE] FindSymbol =09[IMAG=
E]=09
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MAGE]52.730.58% NASDAQ1,600.00[IMAGE]2.690.16% S?5001,070.31[IMAGE]0.690.06=
% 30 Yr53.15[IMAGE]0.120.22% Russell415.02[IMAGE]2.02-0.48%- - - - - MORE =
[IMAGE][IMAGE] Enter multiple symbols separated by a space [IMAGE] [IM=
AGE]=09 =09 [IMAGE] Economic Calendar Date Release 10/05 Average Wo=
rkweek 10/05 Hourly Earnings 10/05 Unemployment Rate 10/05 Consumer Credit =
10/10 Wholesale Inventories - - - - - MORE [IMAGE] [IMAGE] [IMAGE] [IMAG=
E]Qcharts =09[IMAGE]=09
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icklaus =09[IMAGE]=09
[IMAGE]=09 [IMAGE] US Stocks Pct Gainers As of 10/05/2001 15:52 =
ET Symbol Last Change % Chg [IMAGE] DKEY4.32[IMAGE]1.0833.33%[IMAGE] INM=
T3.58[IMAGE]0.7024.30%[IMAGE] DRVR1.25[IMAGE]0.2525.00%[IMAGE] REGI1.60[IMA=
GE]0.3528.00%[IMAGE] LSPN1.57[IMAGE]0.2720.76%[IMAGE] MCTR1.56[IMAGE]0.2519=
.08%[IMAGE]NYSE & AMEX quotes delayed at least 20 min. At least 15 min. oth=
erwise.- - - - -Personalize The Daily Quote: [IMAGE][IMAGE]Question of the =
Day! Q. Ron Schulz asks: "Could you tell me about candlesticking?"Candlest=
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arity........ MORE [IMAGE] Do you have a financial question? Ask our edito=
r - - - - - VIEW Archive [IMAGE] [IMAGE] [IMAGE]=09 =09=09=09=09[IMA=
GE] [IMAGE] Market Outlook Stocks like White Elephants By:Adam Mar=
tin As we start the last hour of trading, stocks are back in the green and=
rising as traders seem to have shifted to a bargain hunting mode heading i=
nto the weekend in spite of some bad news which has dominated the session. =
After yesterday's closing bell, Gateway announced revised third quarter ex=
pectations that were far short of Wall Street estimates, blaming a falloff =
in demand after the Sept. 11th terrorist attack. Combined with some downgr=
ades in various tech sectors, that is sapping the enthusiasm we saw yesterd=
ay for tech stocks. Reports of weak earnings and layoffs at Sun Microsyste=
ms from their conference call this morning are adding to the air of gloom a=
nd doom of today's session. But foremost on traders' minds today is the un=
employment rate announced at 5:30 Eastern Time. It held steady at 4.9% ins=
tead of creeping up to 5% as was expected, but that number, does not reflec=
t the full impact of nearly 200,000 layoffs last month, and analysts feel t=
he truth is much worse than the number indicates. Nonetheless, the indexes=
are rising, and analysts speculate that this could be due to a growing con=
fidence among traders that the economy is in good hands and on the road to =
recovery. - - - - - MORE Breaking News [IMAGE] [IMAGE] [IMAGE]=09[IMAG=
E]=09
=09 [IMAGE] Today's Feature - Friday The Wisdom of Don Carnage C=
arnage on the real price of petty theft, roller coasters, and self help aut=
hors, help thyselves! [IMAGE] [IMAGE]=09 =09 [IMAGE] Stocks to Wat=
ch Cablevision cuts 2001 earnings outlook Cable television operator and=
sports team owner Cablevision Systems Corp. (NYSE:CVC) cut its 2001 earnin=
gs expectations on Friday, citing lower advertising revenue following the S=
ept. 11 attacks. Xerox changes main accountants as probe continues Office=
equipment company Xerox Corp. (NYSE:XRX), under investigation for alleged =
accounting irregularities stemming from its Mexican operations, said on Fri=
day it has replaced KPMG LLP with PricerwaterhouseCoopers LLP as its princi=
pal independent accounting firm. Agere repays $1 bln debt, amends credit f=
acility Agere Systems Inc. (NYSE:AGR.A), a maker of semiconductors and op=
tical components, said on Friday that it paid back $1 billion of the $2.5 b=
illion of debt it took on. GE, Viacom still interested in Telemundo NBC =
and Viacom Inc. (NYSE:VIA) are both still interested in acquiring Spanish-l=
anguage television company Telemundo Communications Group Inc., although no=
t at the $3 billion-plus price tag being sought by its principal owners, th=
e Wall Street Journal said in its online edition on Friday. Sun lowers reve=
nue outlook, expects wider loss Sun Microsystems Inc. (NASDAQ:SUNW) warned=
on Friday that it expects to have an operating loss of 5 cents to 7 cents =
a share in its fiscal first quarter ended Sept. 30, wider than the Wall Str=
eet consensus, citing the weak economy and uncertainties related to the Sep=
t. 11 attacks. - - - - - MORE Breaking News [IMAGE] [IMAGE] [IMAGE]=09[=
IMAGE]=09
=09=09=09 [IMAGE] Your Watch List News DKEY News DATAKEY INC FILE=
S FORM SC 13D/A (*US:DKEY) EDGAR Online: 10/03/2001 11:47 ET Datakey CIP I=
Sign Approved as Fully Identrus(TM) Compliant PR Newswire: 10/03/2001 10:0=
3 ET Five Additional Firms Join Fargo Technology Alliance; Will Present Eff=
ective Smart Card Solutions At Second Fargo Technology Showcase Sunday, Sep=
tember 30 BusinessWire: 09/30/2001 08:16 ET - - - - - MORE [IMAGE] INMT =
News INTERMET to Webcast Third-Quarter 2001 Earnings Briefing PR Newswire:=
10/02/2001 10:37 ET Intermet slashes third-quarter expectations Reuters: =
09/21/2001 15:22 ET INTERMET Third-Quarter Sales and Earnings Expectations =
Lower PR Newswire: 09/21/2001 15:00 ET - - - - - MORE [IMAGE] DRVR News =
Farmers Alliance Signs Three-Year Agreement to Use Innovative driversshield=
.com CRM Solution for Auto Collision Claims PR Newswire: 09/19/2001 11:39 =
ET Code Technologies Chooses Paradigm as Location Based Service Technology =
Provider BusinessWire: 09/04/2001 11:07 ET driversshield.com Announces Ter=
mination of Letter of Intent PR Newswire: 08/31/2001 17:35 ET - - - - - MO=
RE [IMAGE] REGI News Renaissance Worldwide Signs Definitive Agreement to =
be Acquired by Aquent and Terminates Management Buyout BusinessWire: 10/05=
/2001 09:30 ET RENAISSANCE WORLDWIDE INC FILES FORM PRER14A (NASDAQ:REGI) =
EDGAR Online: 08/29/2001 08:05 ET Renaissance Worldwide Announces Unsolicit=
ed Proposal BusinessWire: 08/28/2001 09:03 ET - - - - - MORE [IMAGE] LSPN=
News Email Marketing Leader, OnMercial.com, Adds New Clients to Growing R=
oster; New Features Enhance Permission-based Email Marketing Tools, Allow E=
mail Campaigns to be Managed On the Web BusinessWire: 09/28/2001 08:13 ET =
Lightspan Signs Multi-Year, Million Dollar Internet Subscription Contract W=
ith Texas School District PR Newswire: 09/27/2001 12:21 ET Lightspan Boost=
s Contract, Increases Presence in Key Urban Market PR Newswire: 09/17/2001=
16:32 ET - - - - - MORE [IMAGE] MCTR News Mercator to Issue Third Quarte=
r Financial Results On October 30 BusinessWire: 10/05/2001 09:07 ET Mercat=
or Releases Integration Broker Version 6.0; Single, Enterprise-Level Integr=
ation Technology Platform for Web, EDI & Vertical Application Requirements =
Now Available BusinessWire: 10/03/2001 08:36 ET MERCATOR SOFTWARE INC FILE=
S FORM 8-K (*US:MCTR) EDGAR Online: 10/01/2001 15:59 ET - - - - - MORE [IM=
AGE] [IMAGE]=09 =09
[IMAGE]
[IMAGE]=09You are subscribed to this newsletter as [email protected] U N S=
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arnold-j/deleted_items/430.
|
subject: RE: ENA External Interviews
content: Thankyou!
-----Original Message-----
From: Arnold, John
Sent: Tuesday, October 23, 2001 10:47 AM
To: Engler, Adrianne
Subject: RE: ENA External Interviews
I had yes to Zaun and no to the others
-----Original Message-----
From: Engler, Adrianne
Sent: Tuesday, October 23, 2001 9:13 AM
To: Arnold, John
Cc: Buckley, Karen
Subject: ENA External Interviews
Good Morning John -
Below is the result of Harry Aurora's conversations with the candidates...
Please respond if you agree/disagree or other comments....
Michael Scarlata - MAYBE
Donald Timpanaro - NO
Jeffrey Zaun - YES
Thank you,
Adrianne
x57302
| ||
arnold-j/deleted_items/431.
|
subject: The Daily Quote
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ET Symbol Last Change % Chg [IMAGE] ADTK5.25[IMAGE]1.9458.61%[IMAGE] AXY=
X4.52[IMAGE]1.4748.19%[IMAGE] VIFL4.38[IMAGE]0.9929.20%[IMAGE] GTTLB1.37[IM=
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pose in the grand scheme of........ MORE [IMAGE] Do you have a financial q=
uestion? Ask our editor - - - - - VIEW Archive [IMAGE] [IMAGE] [IMAGE=
]=09 =09=09=09=09[IMAGE] [IMAGE] Market Outlook A Bull in a Mine F=
ield By:Adam Martin Stocks have leveled at this hour afer posting some ga=
ins in early trading as traders seem to have gotten past, for the moment, l=
ingering fears of bioterrorism and the ongoing military action. Techs are =
showing strength today, leading stocks on an upward rise. Traders like wha=
t they see this morning as earnings from the likes of Lucent and Daimler Ch=
rysler, while certainly not as strong as one might hope, at least offered n=
o surprises. Analysts feel that as long as earnings continue to come in no=
worse than predicted, meeting forecasts no matter how deeply cut, Wall Str=
eet could enjoy a continuation of yesterday's rally. Alan Greenspan's enco=
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surely adding lift to the market as well. - - - - - MORE Breaking News [I=
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=09 [IMAGE] Today's Feature - Tuesday [IMAGE] Wanna know what exper=
ts are saying about the most important stocks...yours? Get the latest ins=
ide info from Wall Street Analysts and people just like you who really *kno=
w* about your stocks. Click here to check out Raging Bull. [IMAGE] [IMA=
GE]=09 =09 [IMAGE] Stocks to Watch AT&T to Cut 2,400 Jobs AT&T Cor=
p. is cutting an additional 2,400 jobs, meaning the telecommunications gian=
t will have cut more than 8,000 jobs, or more than 6 percent of its work fo=
rce, this year, The Wall Street Journal reported Tuesday. Exxon Mobil quart=
erly earnings fall Exxon Mobil Corp. (NYSE:XOM), the No. 1 U.S. oil compan=
y, on Tuesday posted lower third-quarter earnings, with a downturn in deman=
d, as well as overproduction by the OPEC cartel, contributing to falling pr=
ices for crude oil. DaimlerChrysler Q3 profit beats expectations German au=
to giant DaimlerChrysler AG (NYSE:DCX) posted third quarter results on Tues=
day which clearly beat market expectations but said full year profit would =
be at the lower end of its forecast range. Lucent loss widens, takes $8 bln=
charge Telecommunications equipment maker Lucent Technologies Inc. (NYSE:=
LU) on Tuesday posted a fourth-quarter operating loss and took an $8 billio=
n charge as it restructured amid the gloomy telecom slowdown. Agere posts $=
3.4 billion quarterly loss Telecommunications component maker Agere System=
s Inc. (NYSE:AGR.A), on Tuesday posted a $3.4 billion net loss for the four=
th quarter as revenues collapsed and it took large charges, and it warned o=
f lower first-quarter revenues as well. - - - - - MORE Breaking News [IMAG=
E] [IMAGE] [IMAGE]=09[IMAGE]=09
=09=09=09 [IMAGE] Your Watch List News ADTK News JDS Uniphase sig=
ns development deal with Adept Tech Reuters: 10/23/2001 09:05 ET Adept Tec=
hnology and JDS Uniphase Form Automation Alliance PR Newswire: 10/23/2001 =
08:33 ET Adept Technology Announces First-Quarter 2002 Earnings Conference =
Call Wednesday, October 24, 2001, at 5:00 p.m. ET / 2 p.m. PST BusinessWir=
e: 10/19/2001 12:08 ET - - - - - MORE [IMAGE] AXYX News Axonyx Compounds =
Provided to U.S. Army for Testing Against Sarin Gas and Other Agents Busin=
essWire: 10/23/2001 09:28 ET Axonyx Announces Completion of Treatment Segme=
nt of Phase II Alzheimer's Trial With Phenserine BusinessWire: 10/02/2001 =
09:20 ET Axonyx CEO to Present At the UBS Warburg Global Life Sciences Conf=
erence BusinessWire: 09/10/2001 14:22 ET - - - - - MORE [IMAGE] VIFL New=
s Food Technology Service, Inc. Reports Continued Profits BusinessWire: 1=
0/10/2001 13:08 ET FOOD TECHNOLOGY SERVICE INC FILES FORM 10QSB (*US:VIFL) =
EDGAR Online: 10/10/2001 11:55 ET Food Technology Service, Inc. Announces=
New President/CEO; Food Irradiation Movement Gains Support As Former Stat=
e Health Official Becomes CEO BusinessWire: 09/04/2001 09:30 ET - - - - - =
MORE [IMAGE] GTTLB News Group Telecom appoints new Chairman and provides =
fourth quarter update PR Newswire: 10/03/2001 19:32 ET Moody's may cut 17 =
telecoms, billions in debt Reuters: 10/03/2001 19:24 ET GT GROUP TELECOM I=
NC FILES FORM F-3/A (*US:GTTLB) EDGAR Online: 09/26/2001 17:04 ET - - - - =
- MORE [IMAGE] SHLR News UPDATE 1-D.R. Horton to buy Schuler for $653 mil=
lion Reuters: 10/23/2001 09:20 ET D.R. Horton to buy Schuler for $653 mill=
ion Reuters: 10/23/2001 09:01 ET D.R. Horton, Inc. and Schuler Homes, Inc.=
Announce $1.2 Billion Merger PR Newswire: 10/23/2001 08:47 ET - - - - - M=
ORE [IMAGE] MCEL News MILLENNIUM CELL INC FILES FORM POS AM (*US:MCEL) E=
DGAR Online: 10/12/2001 11:38 ET Millennium Cell to Demonstrate Fuel System=
With New Ballard "Nexa" Fuel Cell At Hydrogen Expo in Germany BusinessWir=
e: 09/27/2001 23:10 ET Millennium Cell Provides Ford With Prototype Hydroge=
n On Demand Fuel System for Evaluation BusinessWire: 09/17/2001 10:46 ET -=
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arnold-j/deleted_items/432.
|
subject: Metro Briefs
content: [IMAGE]=20
=09[IMAGE]=09[IMAGE]=09=09
[IMAGE] =09[IMAGE] [IMAGE]=09 [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [=
IMAGE] [IMAGE] [IMAGE] [IMAGE][IMAGE] =09[IMAGE]=09
[IMAGE]
=09=09[IMAGE]=09=09=09
=09=09[IMAGE]=09=09[IMAGE]=09
[IMAGE] [IMAGE] =09[IMAGE]=09[IMAGE] [IMAGE] ReisCast October 23, 2001 =
Reis - America's Source for Real Estate Investing Welcome to ReisCas=
t, our weekly email newsletter. This week's edition highlights are: Met=
ro Briefs Now Underway -- Reis SE's Special Offer -- FREE MetroStats & Sub=
marketStats 2Q01 Reports! [IMAGE] [IMAGE] 1. Metro Briefs Still =
"King of the Hill - Top of the Heap" - New York Apartment Market - Second Q=
uarter 2001 Just six months ago, a "new gilded age" was permeating New Yor=
k. According to Reis, as well as other market observers, the market was ch=
aracterized as having an all-time low unemployment rate, an expanding finan=
cial industry, and a vibrant, though volatile, "Silicon Alley". Now recove=
ring from the wounds left by the events of September 11, the city's busines=
s and political leaders are faced with the daunting task of revamping secur=
ity and rebuilding the city, including the reconstruction of its communicat=
ion and transportation infrastructure, office market, and more importantly,=
healing public confidence...Yet even now, New York's 128,000-unit apartmen=
t market continues to show tremendous staying power... To get the enti=
re market excerpt as well as an opportunity to buy the full Reis Observer r=
eport, go to http://www.reis.com/learning/insights_metro_spotlight1.cfm#o=
ne Midwest Heavyweight Keeps Swinging - Chicago Retail Market - Second=
Quarter 2001 Ducking the punches thrown by today's sluggish retailing env=
ironment, the city with broad shoulders is slugging it out with a tough, tw=
o-fisted challenger-consumer apprehension and economic recession. Already =
showing signs of wear, regional malls have been hit with a crippling combo =
of departures by JC Penney, Sears, Roebuck and Co., and Montgomery Ward. F=
ortunately, Chicago has been able to "keep its dukes up" thus far,...reposi=
tioning itself to survive by relying more on big-box, value-oriented retail=
ers and community and neighborhood shopping centers... To get the enti=
re market excerpt as well as an opportunity to buy the full Reis Observer r=
eport, http://www.reis.com/learning/insights_metro_spotlight1.cfm#two =
[IMAGE] 2. Now Underway -- Reis SE's Special Offer -- FREE MetroStat=
s & SubmarketStats 2Q01 Reports! Just a reminder ... you can still get FR=
EE MetroStats and SubmarketStats reports with market trends, per second qua=
rter 2001, for office and apartment markets in our 30 expansion metros. B=
ut remember, this offer is limited to Reis SE and corporate account users a=
nd expires with the release of our third quarter 2001 update in November. =
So don't delay....download your FREE MetroStats and SubmarketStats 2Q01 rep=
orts this week. Not a Reis SE subscriber or corporate account user yet? W=
hat are you waiting for? Reis SE is very affordably priced to custom-fit yo=
ur US metro needs--be that one market or one hundred! So call now for a Re=
is SE Demo at 1(800) 366-REIS, or email us at [email protected] . As always=
, we welcome your comments and suggestions. www.reis.com [IMAGE] You a=
re receiving the email because you have subscribed to this list. If you wo=
uld like to remove yourself from this list, please click here and you will=
be removed immediately! Thank you! [IMAGE] [IMAGE] [IMAGE] [IMAGE] [I=
MAGE] ?2001 Reis, Inc. All rights reserved. =09[IMAGE]=09[IMAGE] [IMAG=
E] [IMAGE] =09
| ||
arnold-j/deleted_items/433.
|
subject: <<Concur Expense Document>> - Rangel
content: The following expense report is ready for approval:
Employee Name: Ina R. Rangel
Status last changed by: Automated Administrator
Expense Report Name: Rangel
Report Total: $35,818.66
Amount Due Employee: $35,818.66
To approve this expense report, click on the following link for Concur Expense.
http://expensexms.enron.com
| ||
arnold-j/deleted_items/434.
|
subject: RE:
content: 4-5
-----Original Message-----
From: Arnold, John
Sent: Monday, October 22, 2001 7:12 AM
To: Lavorato, John
Subject: RE:
3-5
-----Original Message-----
From: Lavorato, John
Sent: Sunday, October 21, 2001 2:30 PM
To: Arnold, John
Subject:
DENVER -3
ARIZ +2.5
MINN +3.5
PHILI +9 UNDER 41.5 TEASE
ALL 150
| ||
arnold-j/deleted_items/435.
|
subject: Are you in debt?
content: Are you in debt? Having trouble paying it off? We can help!
We can consolidate your bills into just one monthly payment
and help achieve the following:
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please reply to this email, fill out the form below, and
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never receive such advertisements from our company,
please reply to this e-mail with the word REMOVE in the
e-mail subject line. We apologize for any inconveniences
6gc86
| ||
arnold-j/deleted_items/436.
|
subject: TRV Notification: (NG - Price P/L - 10/23/2001)
content: The report named: NG - Price P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=10&report_name=NG+-+Price+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y¤t_efct_date=10/23/2001>, published as of 10/23/2001 is now available for viewing on the website.
| ||
arnold-j/deleted_items/437.
|
subject: TRV Notification: (NG - PROPT P/L - 10/23/2001)
content: The report named: NG - PROPT P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=11&report_name=NG+-+PROPT+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y¤t_efct_date=10/23/2001>, published as of 10/23/2001 is now available for viewing on the website.
| ||
arnold-j/deleted_items/438.
|
subject: Tons of new Parker 90+ Pointers!!!!
content: To Place an order . . .
PLEASE CALL 973-376-0005 ask for Order Dept.www.winelibrary.com
or e-mail us at [email protected]
1. #14146 - La Palazzola 1999 Rubino - $35.99 On Sale
93 Points - Robert Parker
A Wine Library Super Selection!!!!! - This is a tremendous effort, don't miss it!
"A cask-aged, unfined, unfiltered blend of 80% Cabernet Sauvignon and 20% Merlot. It exhibits a smoky, chocolatey bouquet with hints of cassis, tobacco, and toasty new oak. With superb definition, moderate tannin, excellent structure, and exceptional concentration as well as overall purtiy, this full-bodied, blockbuster effort can be drunk now or cellared for 10-12 years. There are approximately 1,000 cases of the Merlot and 2,000 cases of the Rubino"Have your own tasting notes? Post your own review of this wine on Wine Library.com!
2. #16358 - Tommaso Bussola 1997 Amarone TB - $71.99 (Only $57.59 when you buy a case)
92 Points - Robert Parker
"The 1997 Amarone is a broad, expansive, muscular, dense, full-bodied, pure effort offering aromas and flavors of melted asphalt, black plums, cherries, and earth. This concentrated Amarone cuts a large swath across the palate. Drink it over the next 10-15 years."Have your own tasting notes? Post your own review of this wine on Wine Library.com!
3. #16411 - Collosorbo 1999 Laurus IGT - $22.99 (Only $18.39 when you buy a case)
92 Points - Robert Parker
"The 1999 Laurus, an intriguing, explosively scented and flavored blend of equal parts Sangiovese and Cabernet Sauvignon, aged in new oak, is a Tuscan fruit bomb. It possesses a deep purple color, dazzling levels of plum, black cherry, and currant fruit, and a voluptous, opulent, thick, rich personality. Drink it during its first 6-7 years to take advantage of its exuberance and lavishly fruited qualities."Have your own tasting notes? Post your own review of this wine on Wine Library.com!
4. #15936 - Falesco 1999 Montiano IGT - $39.99 On Sale
95 Points - Robert Parker
"The profound, dense ruby/purple-colored 1999 Montiano (2,500 cases of 100% Merlot aged in 100% new French oak, and bottled unfined and unfiltered) offers a smorgasbord of aromas,including melted chocolate, with terrific purity, a multilayered texture, and suprising freshness for a wine of such depth, it can be drunk young, or cellared for 10-15 years. For technicians who care about such things, it has a whopping 37 grams per liter of dry extract."Have your own tasting notes? Post your own review of this wine on Wine Library.com!
5. #11466 - Morgante 1999 Don Antonio - $28.99 (Only $23.19 when you buy a case)
92 Points - Robert Parker
"The finest wine I have ever tasted from the Nero d'Avola grape is Morgante's 1999 Don Antonio, a cuvee of 100% Nero d'Avola aged in 100% new French oak, and bottled without filtration. Maloactic fermentation was also done in barrel. This exquisite effort boasts and opaque purple/blue color as well as an extraordinary bouquet of creamy new oak intertwined with blackberry liqueur, flowers, and cassis. This ripe, full-bodied beauty possesses great intensity, explosive richness, and a finish that lasts for over 35 seconds. This is a revolutionary example from a varietal indigneous to Sicily. Moreover, it should drink well for a decade or more. Wow!"Have your own tasting notes? Post your own review of this wine on Wine Library.com!
6. #16405 - Dry Creek 1999 Zinfandell Heritage Clone - $12.99 On Sale
90 Points - Robert Parker
"It boasts a dense purple color as well as a sweet nose of blackberries, licorice, pepper, and minerals. There is a terrific mid-palate, beautiful harmony, and well-integrated acidity, tannin, and oak. Drink this opulently-styled, pure, classic Zinfandel over the next 4-5 years."Have your own tasting notes? Post your own review of this wine on Wine Library.com!
7. #16237 - Dry Creek 1999 Zinfandel Old Vines - $15.99 On Sale
90 Points - Robert Parker
"The similarly-styled, opaque purple-colored 1999 Zinfandel Old Vines offers gorgeously sweet aromas of black cherries, raspberries, and currants. Multi-layered, powerful, and rich, with more muscle as well as structure than the Heritage Clone cuvee, it is a top flight, balanced, concentrated yet harmonious Zinfandel to enjoy over the next 4-6 years."Have your own tasting notes? Post your own review of this wine on Wine Library.com!
| ||
arnold-j/deleted_items/439.
|
subject: Enron Mentions
content: Cauley Geller Bowman & Coates, LLP Announces Class Action Lawsuit Against E=
nron Corp. on Behalf of Investors
PR Newswire- 10/23/01
Heading up --- Trade body to go ahead with conference in Qatar
The Toronto Star- 10/23/01
Inside Money
SEC INQUIRY OF ENRON RATTLES STOCK
Orlando Sentinel- 10/23/01
Enron Keeps Analysts Happy as Investors Flee: Call of the Day
Bloomberg- 10/23/01
Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
Bloomberg- 10/23/01
How Enron Blew It
Texas Monthly- November 2001 Edition
Enron Fails to Smooth Things Over
TheStreet.com- 10/23/01
Stocks=20
More Static For Enron=20
Forbes.com- 10/23/01
AES Says Indian State Interfering In Ops, Complains To PM
Dow Jones International News- 10/23/01
U.S.-based AES Corp. complains about harassment from Indian state governmen=
t
Associated Press Newswires- 10/23/01
Cauley Geller Bowman & Coates, LLP Announces Class Action Lawsuit Against E=
nron Corp. on Behalf of Investors
10/23/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)
LITTLE ROCK, Ark., Oct. 23 /PRNewswire/ -- The Law Firm of Cauley Geller Bo=
wman & Coates, LLP announced today that a class action has been filed in th=
e United States District Court for the Southern District of Texas, Houston =
Division on behalf of purchasers of Enron Corp. ("Enron" or the "Company") =
(NYSE: ENE) common stock during the period between January 18, 2000 and Oct=
ober 17, 2001, inclusive (the "Class Period"). A copy of the complaint file=
d in this action is available from the Court, or can be viewed on the firm'=
s website at http://www.classlawyer.com/pr/enron.pdf .=20
The complaint charges that Enron and certain of its officers and directors =
violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, a=
nd Rule 10b-5 promulgated thereunder, by issuing a series of material misre=
presentations to the market between January 18, 2000 and October 17, 2001, =
thereby artificially inflating the price of Enron common stock. Specificall=
y, the complaint alleges that Enron issued a series of statements concernin=
g its business, financial results and operations which failed to disclose (=
i) that the Company's Broadband Services Division was experiencing declinin=
g demand for bandwidth and the Company's efforts to create a trading market=
for bandwidth were not meeting with success as many of the market particip=
ants were not creditworthy; (ii) that the Company's operating results were =
materially overstated as a result of the Company failing to timely write- d=
own the value of its investments with certain limited partnerships which we=
re managed by the Company's chief financial officer; and (iii) that Enron w=
as failing to write-down impaired assets on a timely basis in accordance wi=
th GAAP. On October 16, 2001, Enron surprised the market by announcing that=
the Company was taking non-recurring charges of $1.01 billion after-tax, o=
r ($1.11) loss per diluted share, in the third quarter of 2001, the period =
ending September 30, 2001. Subsequently, Enron revealed that a material por=
tion of the charge related to the unwinding of investments with certain lim=
ited partnerships which were controlled by Enron's chief financial officer =
and that the Company would be eliminating more than $1 billion in sharehold=
er equity as a result of its unwinding of the investments. As this news beg=
an to be assimilated by the market, the price of Enron common stock dropped=
significantly. During the Class Period, Enron insiders disposed of over $7=
3 million of their personally-held Enron common stock to unsuspecting inves=
tors.
If you bought Enron common stock between January 18, 2000 and October 17, 2=
001, inclusive, and you wish to serve as lead plaintiff, you must move the =
Court no later than December 21, 2001. If you are a member of this class, y=
ou can join this class action online at http://www.classlawyer.com/sign_up.=
html . Any member of the purported class may move the Court to serve as lea=
d plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of =
their choice, or may choose to do nothing and remain an absent class member=
.=20
Cauley Geller Bowman & Coates, LLP has substantial experience representing =
investors in securities fraud class action lawsuits such as this. The firm =
has offices in Florida, Arkansas and California, but represents investors t=
hroughout the nation. If you have any questions about how you may be able t=
o recover for your losses, or if you would like to consider serving as one =
of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mai=
l the Firm or visit the Firm's website at www.classlawyer.com . CAULEY GELL=
ER BOWMAN & COATES, LLP=20
Investor Relations Department:=20
Jackie Addison, Sue Null or Charlie Gastineau=20
P.O. Box 25438=20
Little Rock, AR 72221-5438=20
Toll Free: 1-888-551-9944=20
E-mail: [email protected]=20
Contacts: (for media)=20
Charlie Gastineau or Sue Null=20
1-888-551-9944=20
MAKE YOUR OPINION COUNT - Click Here=20
http://tbutton.prnewswire.com/prn/11690X34851784
/CONTACT: Charlie Gastineau or Sue Null of Cauley Geller Bowman & Coates, L=
LP, +1-888-551-9944/ 11:37 EDT=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
BUSINESS
Heading up --- Trade body to go ahead with conference in Qatar
FROM THE STAR'S WIRE SERVICES; AP PHOTO
10/23/2001
The Toronto Star
Ontario
E02
Copyright (c) 2001 The Toronto Star
World Trade Organization chief Mike Moore says the 142-country body will go=
ahead with a key conference in Qatar from Nov. 9-13 that he hopes will giv=
e a major boost to the ailing global economy.=20
The announcement at a news briefing yesterday in Doha, Qatar, ended weeks o=
f uncertainty over the meeting's venue, which had been thrown into question=
by security fears, mounting international concern over terrorism and a sur=
ge of anti-Western feeling in Muslim countries since the start of U.S. atta=
cks on Afghanistan.
"If something seismic or catastrophic happens, we will reconsider, but we a=
re planning to come here in just over two weeks' time," Moore said.=20
The focus of the conference will be efforts to launch a new round of negoti=
ations among all member countries to remove many of the remaining barriers =
to free global trade.=20
3M's profit sags=20
Minnesota Mining & Manufacturing Co. says third-quarter profit fell 21 per =
cent as a slumping global economy reduced sales and workforce cuts increase=
d expenses.=20
Profit fell to $394 million (U.S.), or 99 cents a share, from $499 million,=
or $1.25, in the year-ago quarter. Sales fell 7.1 per cent to $3.97 billio=
n from $4.27 billion, the company added in a statement yesterday.=20
3M, which makes products that range from Post-It Notes to circuit boards, h=
as been eliminating 5,000 workers and cutting costs to cope with slowing sa=
les.=20
Copper plunges=20
Copper fell in London yesterday, nearing the lowest price in almost 15 year=
s, on expectations for slowing demand from users such as electronics makers=
and construction companies.=20
Copper for delivery in three months fell as much as $8 (U.S.) to $1,366 a t=
onne on the London Metal Exchange, where prices are down 25 per cent this y=
ear. A move through the 1999 intraday low of $1,365 will mark the lowest pr=
ice since February, 1987.=20
Enron information sought=20
Houston-based energy-trading giant Enron Corp. says the U.S. Securities and=
Exchange Commission has sought information on company transactions with li=
mited partnerships that were managed by an Enron senior officer.=20
In a statement yesterday, Enron said it will provide the federal regulatory=
agency with information in response to an inquiry last week.=20
The transactions to "hedge certain merchant investments and other assets" t=
ook place in 1999 and 2000, according to Enron's 2000 annual report, and re=
sulted in a $16 million (U.S.) pre-tax gain to Enron in 1999 and a $36 mill=
ion loss in 2000.=20
Enron officials declined to provide details about the transactions or name =
the limited partnerships.=20
Upset investors sent shares of Enron down $5.40 more than 20 per cent to cl=
ose at$20.65 in heavy trading in New York.=20
Moulinex takeover okayed=20
A court in the Paris suburb of Nanterre has approved a takeover offer by ho=
usehold-appliance maker Groupe SEB SA for troubled rival Moulinex SA.=20
SEB is expected to retain nearly 3,500 jobs at Moulinex, about half of them=
in France, the court said yesterday. Moulinex has 8,800 employees worldwid=
e, almost 5,600 of them in France.=20
SEB was to disclose financial details of its offer at a news conference tod=
ay.=20
Small jets seen on rise=20
Bombardier Inc. chief executive Robert Brown says use of the company's regi=
onal jets is actually increasing, even though air traffic is down in North =
America a crushing 30 per cent since the terrorist attacks in the United St=
ates.=20
Brown said yesterday he has "anecdotal evidence" that airlines are flying t=
he company's 50-seat jets more often and on more routes because the planes =
are more efficient than large planes to fly when traffic is light.=20
The trend has not brought new sales, Brown said, but has helped firm up ord=
ers for the aircraft that typically take up to more than a year from the da=
te of purchase to delivery.=20
He was speaking at an opening ceremony for Bombardier's vast new aircraft-a=
ssembly plant in Mirabel, Que.=20
Aliant shedding jobs=20
Aliant Telecom Inc. plans to reduce its non-unionized workforce by 140 peop=
le, the Atlantic region's largest phone company said yesterday.=20
A statement said that 70 of those people will receive retirement packages, =
but did not indicate when the other 70 employees in Nova Scotia, New Brunsw=
ick, Prince Edward Island and Newfoundland would lose their jobs or what se=
verance they'd receive.
Swissair planes stand on the tarmac at Zurich's Kloten Airport yesterday as=
Switzerland's government announced a rescue package totalling 4.24 billion=
Swiss francs, or about $4 billion (Canadian).=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
MONEY
Inside Money
SEC INQUIRY OF ENRON RATTLES STOCK
Associated Press
10/23/2001
Orlando Sentinel
METRO
B5
(Copyright 2001 by The Orlando Sentinel)
HOUSTON -- Shares of Enron Corp. plunged Monday after the energy trading gi=
ant said the Securities and Exchange Commission had sought information abou=
t the company's transactions with limited partnerships, which were managed =
by an Enron senior officer.=20
In a statement, Enron said it had provided the regulatory agency with infor=
mation in response to an inquiry last week.
"We welcome this request," Enron chairman and chief executive officer Kenne=
th L. Lay said Monday. "We will cooperate fully with the SEC and look forwa=
rd to the opportunity to put any concern about these transactions to rest."=
=20
Investors were upset by the news, however, sending shares of Enron down $5.=
40 to close at $20.65 on the New York Stock Exchange.=20
The transactions took place in 1999 and 2000, according to Houston- based E=
nron's 2000 annual report. They resulted in a $16 million pre- tax gain to =
Enron in 1999 and a $36 million loss in 2000.=20
Enron officials would not provide details about the transactions or identif=
y the limited partnerships, instead referring questions to a section of the=
annual report on related party transactions.=20
"Enron entered into transactions with [limited partnerships] to hedge certa=
in merchant investments and other assets," according to the section.=20
Enron spokesman Mark Palmer said the SEC first contacted Enron last week an=
d described the request is an "informal inquiry."=20
"This is not an investigation," he said. "We see the request as an opportun=
ity to put this issue behind us."=20
SEC spokesman John Heine said he could not comment on the filings.=20
The electricity marketer and natural gas provider says both internal and ex=
ternal auditors and attorneys reviewed the arrangements, the company's boar=
d was fully informed of and approved them, and they were disclosed in the c=
ompany's SEC filings.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron Keeps Analysts Happy as Investors Flee: Call of the Day
2001-10-23 17:08 (New York)
Enron Keeps Analysts Happy as Investors Flee: Call of the Day
New York, Oct. 23 (Bloomberg) -- Over lunch in a conference
room at Boston's Four Seasons Hotel last Thursday, Enron Corp.
Chairman Kenneth Lay tried to convince analysts and investors that
the company has no more surprises.
With the analysts, he apparently succeeded. Enron remains one
of Wall Street's most highly rated stocks, even after the largest
energy trader acknowledged that transactions with partnerships run
by its chief financial officer led to a writedown of $1.2 billion
in shareholder equity.
Lay wasn't so successful with investors, who have abandoned
Enron shares, slashing their value 42 percent in a week.
``You've got a lot of people lining up to say the emperor has
no clothes,'' said Richard Gross of Lehman Brothers Inc., who
today repeated his ``strong buy'' rating on Enron. Analysts at
Credit Suisse First Boston, Goldman, Sachs & Co. and other firms
have also kept their highest ratings on Enron.
Gross still likes the look of Enron's finery. ``The core
franchise here is very valuable,'' he said, and the stock's
decline more than reflects the ``worst case'' for the company.
In Boston and at similar meetings in Houston and New York,
Lay had to explain the unwinding of the partnerships. He and other
Enron executives assured investors the company has no more
surprises in store, according to Greg Phelps, who manages $1.1
billion at John Hancock Advisers Inc., and attended the Boston
session.
The partnerships functioned somewhat like private equity
funds, according to analysts and investors, and included
investments that lost money. The Securities and Exchange
Commission has asked for more information about them, Enron said
yesterday.
One Hold, One Sell
While two analysts have cut their Enron ratings after
learning about the partnerships, they only dented the company's
popularity on Wall Street.
Michael Heim of A.G. Edwards & Sons Inc. in St. Louis lowered
his rating to ``hold'' from ``buy'' on Friday. He said he has been
looking for discussion of the partnerships in Enron's SEC filings
and is only seeing ``vague references'' that don't leave him with
a ``good comfort level.''
With Heim's rating change, Enron went from being the second
most highly rated stock in the Standard & Poor's 500 Index to the
10th, according to Thomson Financial/First Call.
Today, Zach Wagner at Edward Jones & Co. in St. Louis cut
Enron to ``reduce'' from ``accumulate.'' Ratings by Edward Jones,
which caters to individual investors rather than institutions,
aren't tracked by First Call.
First Call translates analyst ratings into numbers, with
``strong buy'' a one, ``buy'' a two, and so on, then averages the
ratings to rank a company's Wall Street popularity. The most
highly rated stock is Tyco International Ltd., which has fallen 12
percent this year.
Enron shares fell 86 cents to $19.79 today.
Remaining Skeptical
However highly brokerage analysts rate the stock, ``I have to
remain skeptical,'' said Barry Borak, energy analyst at David L.
Babson & Co., which manages $60 billion in Cambridge,
Massachusetts.
``There's been a huge loss of management credibility at
Enron,'' Borak said, because of the partnerships and the
unexpected departure in August of Jeffrey Skilling, who had held
the post of chief executive officer for six months and was heir
apparent to Lay. ``Nobody I've talked to thinks (Skilling's
departure) is for personal reasons,'' Borak said.
Skilling helped transform Enron from a gas pipeline company
into the biggest energy trading company. Enron also owns power
plants in deregulated markets.
Borak said Babson doesn't own Enron shares and won't be a
buyer ``until I can get better, more thorough information about
what else might pop up in the future.''
Borak and other investors said Enron has a reputation for not
providing enough information about its businesses, and they said
this makes the positive view of the company on Wall Street more
difficult to understand.
After Skilling resigned, Lay said the company would be more
open about its businesses. A bullet point in his talk in Boston
was ``increased transparency of financial and operating results,''
according to a handout provided at the Boston meeting.
Amazed, Dismayed
Prudential Securities Inc. analyst Carol Coale wrote in a
note to clients last week that she was ``amazed at the willingness
of Enron's management to break out earnings and expenses to the
degree that it disclosed in the third quarter.''
Coale also wrote that she was ``dismayed by the apparent
`disguise' of the additional $1.2 billion equity hit that was not
disclosed in (Enron's) press release and was briefly mentioned in
the earnings conference call.'' Coale kept her rating on Enron at
``buy.''
Phelps at John Hancock said that his ``cynical side''
believes that investment banking business has helped keep Wall
Street recommending Enron stock. ``They provide some good
underwriting business,'' he said.
Credit Suisse First Boston managed a secondary sale of 12
million Enron shares in 1999, with Lehman Brothers acting
as co-manager. Credit Suisse has also managed bond sales for
Enron this year.
Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
2001-10-23 16:38 (New York)
Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
(Updates with closing share price in sixth paragraph.)
New York, Oct. 23 (Bloomberg) -- Enron Corp., the biggest
energy trader, has asked Citigroup Inc. to arrange a $750 million
loan, ensuring access to credit if the company is cut off from
money markets, say people familiar with the matter.
Enron's shares and bonds plunged yesterday after the company
said the Securities and Exchange Commission was investigating its
finances. The company depends on a $3 billion commercial paper, or
short-term debt, program to finance day-to-day operations.
Moody's Investors Service last week placed all $13 billion of
the company's long-term debt securities on watch for possible
downgrade. Any drop in the rating may cut off Enron from the
commercial paper market, raising the costs of short-term debt.
``We understand that our credit rating is critical to both
the capital markets and our counterparties,'' Enron's Chief
Financial Officer Andrew Fastow said on a conference call today.
He said Enron has $3.5 billion available on bank credit lines,
giving it enough cash to operate normally.
Dan Noonan, a spokesman for Citigroup's Citibank NA unit,
declined to comment. Mark Palmer, a spokesman for Enron, also
wouldn't comment.
Shares of Enron, based in Houston, fell 86 cents to $19.79.
They have fallen 76 percent this year.
Complex Financing
An investor sued Enron last week, saying dealings with two
partnerships run by Fastow, LJM Cayman and LJM2 Co-Investment,
cost the company $35 million. The suit also calls Fastow's
leadership of the partnerships, set up to remove debt from Enron's
books, a conflict of interest.
Enron bought back 62 million shares to unwind positions in
some partnerships run by Fastow, said Chief Executive Officer Ken
Lay on the conference call with investors today.
The number of shares differs from a Wall Street Journal
report on Thursday that said Enron had bought back 55 million
shares. The buyback reduced shareholder equity by $1.2 billion,
the Journal said.
The company set up the partnerships and other affiliated
companies to buy Enron assets such as power plants. The
partnerships allow Enron to take debt off its books, letting it
borrow to invest in its main business of commodities trading,
Enron said. Enron trades electricity, natural gas, oil, coal and
other commodities.
```They have complex off-balance sheet financing,'' said
Commerzbank analyst Andre Mead. ``It's difficult to ascertain the
full impact on shareholders.''
The SEC has asked Enron about partnerships and affiliated
companies headed by Fastow. The company has at least $3 billion in
such ``off-the-books'' financing in affiliated companies, Ray
Niles, a Salomon Smith Barney analyst, wrote in a report to
investors.
Depends on Asset Sales
One partnership, Whitewing Management, owns 250,000 preferred
shares that Enron may have to convert to common stock. Whitewing
partners can demand their preferred shares be converted if Enron
common stock falls below a certain price or if Enron's credit
rating drops under investment grade.
Whitewing and other Enron partnerships and trusts include
company executives as officers and directors, according to records
from the Texas secretary of state.
``Over the life of these trust structures, Enron has in fact
issued a sizable amount of equity,'' Enron Treasurer Ben Gilsan
said. Most of that was shares issued to Enron executives as part
of a deferred compensation plan, Gilsan said.
The Whitewing partnership was financed with $1.4 billion in
bonds sold last year. The partnership used some of the proceeds to
buy Enron power plants and plans to retire the debt by selling
them, officials said on the conference call. Other company
partnerships operate with the same strategy.
``Some investors are worried the asset sales won't cover the
full amount (borrowed), and Enron will have to furnish support to
the detriment of shareholders,'' said Commerzbank analyst Meade.
Commercial Paper Rates
Enron was paying 3.15 percent to issue commercial paper until
Oct. 31, which is as much as 15 basis points more than companies
with the same ``A2/P2'' short-term credit ratings that are not on
credit watch. Enron's short-term debt is not on review for a
possible downgrade.
Based on Bloomberg composite ratings, most of Enron's long-
term debt is rated at BBB2 and BBB1, two or three levels above
investment grade. Fitch, Standard & Poor's and Moody's rate the
company's debt at investment grade.
Enron has previously turned to Citigroup for finance and
advice. In 1999, Citigroup's Salomon Smith Barney unit advised the
company on its $1.45 billion acquisition of three natural gas-
fired power plants from Cogen Technologies Inc. Citibank, along
with J.P. Morgan Chase & Co., this year arranged a $1.75 billion
loan.
How Enron Blew It
Texas Monthly
November 2001
Less than a year ago, the Houston-based energy behemoth had everything: mon=
ey, power, glitz, smarts, new ideas, and a CEO who wanted to make it the mo=
st important company in the world. Now its stock is down, wall street is be=
arish, and the CEO is gone. What went wrong?
by Mimi Swartz <http://www.texasmonthly.com/mag/issues/authors/mimiswartz.p=
hp>
=20
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like th=
e international headquarters of the best and the brightest. The lobby in no=
way resembles the hushed, understated entryways of the old-fashioned oil c=
ompanies, like Shell and Texaco nearby. Enron, in contrast, throbs with mod=
ernity. The people hustling in and out of the elevators are black, white, b=
rown; Asian, Middle Eastern, European, African, as well as American-born. T=
hey are young, mostly under 35, and dressed in the aggressively casual unif=
orm of the tech industry-the guys wear khakis, polo shirts, and Banana Repu=
blic button-downs. Almost preposterously fit, they move through the buildin=
g intently, like winners. Enron is nothing if not energetic: A Big Brother-=
size TV screen frantically reports on the stock market near a bank of eleva=
tors, while another hefty black television relaying the same news greets pe=
ople entering from the garage. A sculpture of the corporate symbol, an E ti=
pped at a jaunty angle, radiates colors as it spins frenetically on its axi=
s; a Starbucks concession on the ground floor keeps everyone properly caffe=
inated. Multicolored, inspirational flags hang from the ceiling, congratula=
ting Enron on its diversity and its values; one more giant banner between e=
levator banks declares Enron's simple if grandiose goal: "From the World's =
Leading Energy Company to . . . The World's Leading Company!"
For a while, that future seemed guaranteed, as Enron transformed itself fro=
m a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000=
. It was a Wall Street darling, with a stock price that increased 1,700 per=
cent in that sixteen-year period, with revenues that increased from $40 bil=
lion to $100 billion. "The very mention of the company in energy circles th=
roughout the world creates reactions ranging from paralyzing fear to envy,"=
notes a 2001 report from Global Change Associates, a firm that provides ma=
rket intelligence to the energy business.
This Enron was largely the creation of Jeff Skilling, a visionary determine=
d to transform American business. Hired sixteen years ago as a consultant b=
y then-CEO Ken Lay, Skilling helped build a company that disdained the old =
formula of finding energy in the ground, hauling it in pipelines, and then =
selling it to refineries and other customers. Instead, it evolved into a co=
mpany that could trade and market energy in all its forms, from natural gas=
to electricity, from wind to water. If you had a risky drilling venture, E=
nron would fund it for a piece of the action. If you wanted your megacorpor=
ation's energy needs analyzed and streamlined, Enron could do the job. If y=
ou were a Third World country with a pitiful infrastructure and burgeoning =
power needs, Enron was there to build and build. Basically, if an idea was =
new and potentially-and fantastically-lucrative, Enron wanted the first cra=
ck. And with each success, Enron became ever more certain of its destiny. T=
he company would be the bridge between the old economy and the high-tech wo=
rld, and in February of this year, Skilling reaped his reward when he succe=
eded Lay as chief executive officer. Enron, says Skilling, "was a great mar=
riage of the risk-taking mentality of the oil patch with the risk-taking me=
ntality of the financial markets."
The Enron story reflects the culture that drove American business at the en=
d of the twentieth century. Like the high-tech companies it emulated, Enron=
was going to reinvent the American business model and, in turn, the Americ=
an economy. Maybe it was natural that this Brave New World also produced a =
culture that was based on absolutes: not just the old versus the new, but t=
he best versus the mediocre, the risk takers versus the complacent-those wh=
o could see the future versus those who could not. The key was investing in=
the right kind of intellectual capital. With the best and the brightest, a=
company couldn't possibly go wrong.
Or could it? Today Enron's stock trades at around $35, down from a high of =
$80 in January. The press cast Enron as the archvillain of California's ene=
rgy crisis last spring, and Skilling caught a blueberry pie in the face for=
his relentless defense of the free market. A long-troubled power plant pro=
ject in India threatened the company's global ambitions. Telecommunications=
, in which Enron was heavily invested, imploded. Wall Street analysts who o=
nce touted the company questioned its accounting practices. Some of the cha=
nge in Enron's fortunes can be attributed to the economic downturn in uncer=
tain times that has afflicted all of American business. But the culture tha=
t the company created and lived by cannot escape blame.
ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about b=
usiness-we got it." At Enron, in fact, you either "got it" or you were gone=
-it was as simple as black and white. It is not coincidental, then, that th=
e color scheme of Skilling's River Oaks mansion mirrors the corporation he =
once headed. Here, the living room's white walls shimmer against the mahoga=
ny floors. Black leather trims the edge of snowy carpets. Billowy sofas set=
off the jet-black baby grand. In the entry, white orchids cascade from a b=
lack vase on a black pedestal table that in turn pools onto cold, white mar=
ble. There is only one off-color note: After almost twenty years, Jeff Skil=
ling is no longer associated with Enron, having resigned abruptly after jus=
t six months as CEO. Once, Skilling was hailed as the next Jack Welch (Gene=
ral Electric's masterful CEO), as one of Worth magazine's best CEO's in Ame=
rica (anointed in 2001), and even as a daredevil who hosted the kind of unc=
hained adventure junkets in which, a friend told BusinessWeek, "someone cou=
ld actually get killed." Today, he sounds more like Ebenezer Scrooge on Chr=
istmas morning. "I had no idea what I'd let go of," Skilling says of all th=
e personal sacrifices he made while retooling Enron.=20
From a black chair in the white library, across from a huge black and white=
photograph of his daughter and two sons, Skilling clarifies. The demands o=
f working 24-7 for Enron caused him to ignore his personal finances. Divorc=
ed, he lived in a 2,200-square-foot house without a microwave or a dishwash=
er. He almost missed his brother's wedding. "Learning a foreign language-I =
never learned a foreign language!" he exclaims. He never once took his youn=
gest son to school. "I'm interested in the kids. You don't do kids in fifte=
en-minute scheduling." Travel: "You can't go to Africa for a week and get a=
nything out of it!" Skilling includes the study of architecture and design =
on his list of missed opportunities, then he stops and sighs. "I'm not sure=
that fulfillment in life is compatible with a CEO's job," he says, finally=
. Then his eyes lock on mine, and his voice, which had softened, regains it=
s pragmatic edge. "It would have been easy to stay," he says. "But that wou=
ld not have been good for me."=20
He's a smallish, ruddy-faced man who keeps himself at fighting weight, hand=
some in the way of corporate titans, with piercing cheekbones and that assi=
duously stolid gaze. But the impatience Skilling once reserved for cautious=
underlings and dull-witted utility company executives is now targeted at r=
eporters who have labeled his resignation "bizarre" and associates who are =
bitterly skeptical of his need for family time. His shrug stretches the lim=
its of his shimmering blue button-down, and his matching blue eyes look put=
upon. "I'm surprised," he says, "that people have so much trouble understa=
nding this."
PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early ni=
neties couldn't help but notice a funny and, for its time, novel scene unfo=
lding throughout the workday at the base of the Enron Building. From nine t=
o five and before and after, you could see people slipping out of the prist=
ine silver skyscraper to smoke. They perched on the chrome banisters or lur=
ked near the glass doors at the entry, puffing like mad. They always looked=
hurried and furtive, even ashamed. Whatever people knew about Enron in tho=
se days (and most people didn't know much), it was often associated with th=
at scene: Enron boasted one of the first nonsmoking corporate headquarters =
in Houston, and there couldn't have been clearer evidence of its break with=
the energy world of the past. What macho engineer would have put up with s=
uch humiliation?
But this company was a child of another time, that period in the mid-eighti=
es when chaos enveloped the gas business. Federal deregulation of natural g=
as turned a steady, secure industry, in which gas pipeline companies freque=
ntly enjoyed a monopoly in portions of the areas that they served, into a v=
olatile free-for-all. The situation was compounded five years later by fede=
ral deregulation of the pipeline business. So it happened that a gentlemanl=
y gas pipeline company, Houston Natural Gas (HNG) found itself under attack=
from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG wa=
s then run by Lay, a sturdy, taciturn former economics professor and Transc=
o chief operating officer who had a passion for military strategy. (His doc=
toral thesis at the University of Houston was on supply and demand in the V=
ietnam War.) Lay, who was from Missouri and never succumbed-at least outwar=
dly-to Texas brashness, had done well enough: Thanks to canny expansions, H=
NG's pipelines stretched from Florida to California and throughout the stat=
e of Texas.
HNG fended off Coastal, but to protect the company from other takeover atte=
mpts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska =
pipeline concern called InterNorth, one of the largest pipeline companies i=
n the country at the time. Then, a funny thing happened: HNG started acting=
in a way that would characterize the company for years to come-a lot like =
Coastal. What the Nebraskans blithely labeled "the purchase" was being call=
ed "the merger" back in Houston, and before long, following some particular=
ly brutal politicking between Omaha and Houston, the company's center of gr=
avity started shifting toward Texas, and shortly after that, Ken Lay was ru=
nning a new company called Enron. "Over time it became clear that Lay had a=
better vision of the future," says one person associated with Enron at tha=
t time. "He never fought change. He embraced change."
Lay had won, but what exactly did that mean? Enron was saddled with massive=
debt from the takeover attempt, and thanks to deregulation, no longer had =
exclusive use of its pipelines. Without new ideas-for that matter, a whole =
new business plan-the company could be finished before it really even got s=
tarted.=20
LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling ha=
d spent a lot of time in the Midwest, and he was self-made-at fourteen he h=
ad been the chief production director at a start-up TV station in Aurora, I=
llinois. (His mother would drop him off there every day after school.) "I l=
iked being successful when I was working, and I was smart," he told Busines=
sWeek earlier this year. But unlike many of his Enron colleagues, Skilling =
wasn't deliberate and soft-spoken and happy to go home at five o'clock; he =
was anxious and excitable, and nothing, but nothing excited him more than w=
hat he would come to call "intellectual capital." He loved being smart, and=
he loved being surrounded by smart people. He graduated from Southern Meth=
odist University, went into banking-assets and liability management-and too=
k on Harvard Business School, where he graduated in the top 5 percent of hi=
s class. Then Skilling took the next step on what was then the new, souped-=
up path to American success: He joined Manhattan's McKinsey and Company as =
a business consultant, and that is where Ken Lay found him in 1985.=20
It is often said of Lay that his instincts for hiring the best are flawless=
, and his choice of Skilling probably saved the company. Skilling was above=
all an expert at markets and how they worked. While everyone else was worr=
ying about the gluts and the shortages that defined the gas industry, he al=
one saw the parallels between gas and other businesses. And so in a world w=
here credit was nearly impossible to come by, Skilling came up with what he=
called the Gas Bank, which contractually guaranteed both the supply and th=
e price of gas to a network of suppliers and consumers. Enron would not be =
a broker but a banker. It would buy and sell the gas itself and assume the =
risk involved. And Enron would make money on transactions, much like an inv=
estment bank would.
Skilling worked up some numbers and found them "absolutely compelling." The=
n the McKinsey consultant took the idea to a meeting of about 25 Enron exec=
utives. He had a one-page presentation. "Almost to a person," Skilling says=
, "they thought it was stupid." Almost. After Skilling left the meeting dej=
ected, he walked Ken Lay to an elevator and apologized. Lay listened and th=
en said, "Let's go."
The Gas Bank was not an overnight success. For months Skilling woke up in a=
cold sweat, sure he had ruined not only his career but the careers of doze=
ns of colleagues who had assisted him. In fact, he had come upon one of tho=
se divides that seem to define his life: "I believed this whole world would=
be different, a huge breakthrough" is the way Skilling puts it today, and =
even if he is typically immodest, he was right. Fairly soon after launching=
, the company sold $800 million worth of gas in a week. True to Skilling's =
character, success turned out to be a matter of old versus new: He says the=
joke around Enron was that if a company's CEO was under fifty, "We were in=
." And he was in too: In 1990 Skilling finally left McKinsey and joined Enr=
on as the head of Enron Finance Corporation, a new division created just fo=
r him. In 1991 that company closed a deal that earned $11 million in profit=
. After that, says Skilling, "we never looked back."
Skilling and Lay also realized that the Gas Bank couldn't work unless it ha=
d a trading component. Myriad trades were needed to build the market that w=
ould make the project go. But by buying and selling enormous quantities of =
gas, Enron not only constructed a market but almost instantly came to domin=
ate it. The company had the best contacts, the best intelligence, and the b=
est access to supplies. That, in turn, attracted more customers who wanted =
to be part of the play. With so many customers in its pocket, Enron could b=
etter predict the direction of the market and could use that knowledge to m=
ake trades for its own benefit-Enron could in effect bet on which way the p=
rice of gas would go, as one might do with pork bellies or soybeans, but wi=
th startling accuracy, thereby generating profits higher than anyone could =
have ever imagined.
THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had m=
ade: He created, within Enron, a new culture to match its new trading busin=
ess. The idea was to build a "knowledge-based business," which demanded a s=
kill set not exactly prized by Enron's employees from the old HNG days. Mos=
t were deliberate, cautious, responsible, somewhat defensive people, most o=
f them men, of course-the kind of people you'd expect to find working in an=
industry regulated by the federal government. But now the company needed b=
older people for its bold new era: that included anyone who wanted to make =
money-lots of money-for themselves and for the company. "Enron was going to=
create a niche for itself or die," one former executive explains. "The peo=
ple who had narrow views eventually were forced out, because if they had na=
rrow views about other things, they had narrow views about the market."
Skilling wanted smart people but not just any smart people. He wanted the s=
martest people from schools like Harvard, Stanford, and maybe, Rice. And be=
cause his firm was now acting more like a bank than a pipeline company, he =
wanted to draw from the pool of recruits that would be attracted to the big=
gest and best investment banks, like Merrill Lynch or Credit Suisse First B=
oston. In addition to being smart, Enron people were also supposed to be "a=
ggressive." You were right for Enron if you didn't want to wait until you w=
ere thirty to close your own deals or move up in an organization.=20
You could see what he was looking for on "Super Saturdays" at the Houston h=
eadquarters: eight fifty-minute interviews with ten minute breaks in betwee=
n-the company might herd as many as four hundred people through in just one=
day. They were scored from 1 to 5 on their smarts, their problem-solving a=
bility, their passion for hard work, and what at Enron was called "a sense =
of urgency." People who scored less than 2.5 were scratched. The shrewdest =
candidates knew how to work Enron before they were even hired: These were t=
he types that automatically turned down the company's first offer, knowing =
Enron would come back with more. The starting salary was around $80,000. Ma=
ybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more =
than enough for a lease on the obligatory Porsche Boxster or one of the lof=
ts being renovated close to downtown. (Enron people didn't live in far-flun=
g suburbs. Suburbs were uncool and too far from the office.)
For the lucky winners, Enron offered the corporate equivalent of a gifted-a=
nd-talented program. New associates learned the latest techniques for struc=
turing energy deals, and there were rotations at Enron offices around the g=
lobe. The hours were long, but every possible need was taken care of. A com=
pany concierge handled all the things important people couldn't be bothered=
with: picking up dry cleaning or prescriptions, shining shoes, cleaning th=
e house, planning a vacation. Of course, a lot of people who worked for Enr=
on never got to take vacations-they were too busy making money-but they cou=
ld use the company gym and the company's personal trainers. If they were ov=
erweight or wanted to quit smoking, they could join Enron's Wellness Progra=
m. Massages were offered six days a week, from seven in the morning until t=
en at night. "They were so cutting edge," rhapsodizes someone involved with=
the company health care program at the time. "They really thought about th=
e psychology and what it took to keep these people going."
Skilling handed out titles analogous to those at Wall Street firms-analysts=
, associates, directors, and managing directors-but everyone knew that thos=
e titles didn't really matter. Money did. Instead of competitive salaries a=
nd decent bonuses, Enron offered competitive salaries and merit-based bonus=
es-with no cap. "If you really worked hard and delivered results, you could=
make a lot of money," says Ken Rice, who stayed with Enron for 21 years un=
til resigning recently as the head of the company's faltering broadband div=
ision. Or, as the saying goes, you got to eat what you killed. Gas traders =
with two or three years of experience could wind up with a $1 million bonus=
. And the more you produced, the closer you got to Jeff: Real hot dogs join=
ed him glacier hiking in Patagonia, Land Cruiser racing in Australia, or of=
f-road motorcycling in a re-creation of the Baja 1,000 race, ending at a sp=
ectacular Mexican villa. "Every time he'd speak, I'd believe everything he'=
d say," one loyalist says.=20
And why not? By 1995 Enron had become North America's largest natural-gas m=
erchant, controlling 20 percent of the market. But at a company where the b=
uzzword was "aggressive," that was no place to stop: Skilling and Lay belie=
ved the Gas Bank model could easily be applied to the electricity business.=
Firmly committed to the notion that a deregulated market meant better serv=
ice at lower prices for consumers (and untold profits for Enron), they bega=
n barnstorming the country, pressing their case with entrenched power compa=
ny presidents (who, with their multimillion-dollar salaries and monopoly se=
rvice areas, had little incentive to change) and energy regulators (who wer=
e somewhat more receptive, thanks in part to Enron's generous lobbying effo=
rts).
But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay m=
ade him the president and chief operating officer of the company. By then, =
the division known as Enron Capital and Trade Resources was the nations lar=
gest wholesale buyer and seller of natural gas and electricity. The divisio=
n had grown from two hundred to two thousand employees, and revenues from $=
2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil=
in the industry has convinced him that he is on the right track," the New =
York Times noted. Everyone would certainly have thought so: Enron and Skill=
ing had totally transformed one industry and were well on their way to tran=
sforming another.
"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within,"=
sang the New York Times in 1999. "In the staid world of regulated utilitie=
s and energy companies, Enron Corp is that gate-crashing Elvis," crowed For=
tune in 2000. Wall Street was demanding tech-size growth on a tech timetabl=
e, and Enron, in 2000, obliged with second quarter earnings of $289 million=
, up 30 percent from the previous year. That year the company seemed to dis=
cover a market a minute: Under Skilling, Enron was trading coal, paper, ste=
el, and even weather. No one blinked when a London wine bar became an Enron=
client. People drank more in warm weather than cold, so why not buy a hedg=
e against the usual winter downturn?
But most exciting to the financial world was Enron's entry into high-tech c=
ommunications. Because of the company's marketing dominance, EnronOnline be=
came another overnight success, handling $335 billion in commodity trades o=
nline in 2000. Enron, as usual, made its money on the spread between the bi=
d price and the asking price. Then there was the broadband business: To Enr=
on, trading excess capacity in large, high-speed fiber-optic networks (empt=
y lanes on the fabled information highway) wasn't that different from tradi=
ng the capacity of natural gas pipelines. So Enron created a market for wha=
t the industry calls bandwidth. Soon after, it also announced a twenty-year=
deal with Blockbuster to deliver movies on demand electronically to people=
in their homes. Enron looked like a company that couldn't lose. "Its strat=
egy of building businesses, shedding hard assets, and trading various commo=
dities can help it do well even in an uncertain market," BusinessWeek insis=
ted.
There was, however, another reason Enron did so well in such a short time: =
the company's hard-nosed approach toward its customers. The old notion of c=
ustomer service was based on the long haul-you had to nurse and coddle cust=
omers to keep them. But Enron had new markets and new ideas-customers had t=
o come to it. Over time, the company stopping referring to its business cli=
ents as customers and began calling them "counterparties."
Skilling wanted the biggest profits on the shortest timetable: Gains were m=
aximized by creating, owning, and then abandoning a market before it became=
overtaxed and overregulated. So if you wanted to launch a high-risk ventur=
e quickly-such as Zilkha Energy's new high-tech approach to drilling for oi=
l-you got your financing from Enron because a bank would take forever to un=
derwrite the project, if it ever would. But because Enron invented its mark=
ets and subsequently dominated them, Enron could set the terms of its deals=
, from the timeline to the method of accounting to whether the deal happene=
d at all.=20
While many businesses used what was known in the industry as "mark-to-marke=
t accounting," for instance, Enron used it on an unprecedented scale. The c=
ompany priced their deals at current market value-but it was always Enron's=
idea of the market value; companies that balked at their pricing didn't ge=
t deals. And while old-fashioned companies spread their profits out like an=
nuities over a period of years, Enron took most of its profit up-front. How=
ever many millions would be made on a deal that covered several years, they=
went on the books in the current year. If a few analysts thought there mig=
ht be something fishy about what they called "subjective accounting," inves=
tors didn't particularly care as long as the profits rolled in. As the mark=
et fluctuated and the landscape changed, the company might abandon a projec=
t that had been in the works for months because its profit margins weren't =
going to be high enough. "Enron is known for leaving people at the altar," =
says one former employee. Winning the highest possible profits for the comp=
any could even extend to Enron's attitude toward charity. When a fundraiser=
for the Houston READ Commission, a literacy group, called on Enron for a c=
ontribution, it was suggested that he start raising money for Enron's compe=
ting literacy charity: "Even the person who was supposed to give money away=
for Enron was supposed to make money for Enron," he says.
As Enron became more and more successful, the culture Skilling had created =
took on a dark side: The competition turned inward. As one member of the En=
ron family put it, "It became a company full of mercenaries." The change st=
arted at the bottom. As Enron's domination of the energy market grew, most =
of the recruiting frills fell away. New associates were treated much like t=
he commodities the company traded. Global Change's Enron spies reported ove=
rhearing orders like "I need a smart person-go buy me one" or "Buy me an in=
telligent slave, quick." Enron had never been the kind of place where peopl=
e sang to you on your birthday, but now the workaholism bordered on self-pa=
rody: A Random Acts of Kindness program lasted only a few months. It was to=
o disruptive. People couldn't get their work done.
And, of course, Enron had a program for institutionalizing creative tension=
. The Performance Review Committee, which had initially been installed by S=
killing in the Capital group, became known as the harshest forced ranking s=
ystem in the country. Employees were rated on a scale of one to five, and t=
hose with fives were usually gone within six months. (The PRC's nickname qu=
ickly became "rank and yank.") It was a point of pride that Skilling's divi=
sion replaced 15 percent of its workforce every year. As one Skilling assoc=
iate put it, "Jeff viewed this like turning over the inventory in a grocery=
store." Skilling's approach to business-get in and get out-had become Enro=
n's attitude toward its workers. In time, it would become many workers' att=
itude toward the company. Teamwork, never that valuable in a trading cultur=
e, went the way of the eyeshade and the abacus. If protocol required an Enr=
on higher-up to come from Europe to help with a project in the Third World,=
he might help-or he might not, depending on whether another, potentially m=
ore lucrative project was pending elsewhere.
Everyone felt the pressure to perform on a massive scale at massive speed: =
"They were so goal oriented toward immediate gratification that they lost s=
ight of the future," says one former employee. Anyone who couldn't close de=
als within a quarter was punished with bad PRC scores, as were the higher-u=
ps who had backed them. Past errors and old grudges were dredged up so ofte=
n as new ammunition in PRC meetings that the phrase "No old tapes" became a=
n Enron clich?. "People went from being geniuses to idiots overnight," says=
one former Enron executive.
In such a hothouse, paranoia flowered. New contracts contained highly restr=
ictive confidentiality agreements about anything pertaining to the company.=
E-mail was monitored. A former executive routinely carried two laptops, on=
e for the company and one for himself. People may have been rich at Enron, =
but they weren't necessarily happy. One recruiter described the culture thi=
s way: "They roll you over and slit your throat and watch your eyes while y=
ou bleed to death."
BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy =
company into the world's leading company, he had to make one more change: J=
ust as he had done ten years before, Skilling had to purge the company of i=
ts remaining old order. Where Enron once prized cautious executives who dea=
lt with tangible assets like pipelines, it now valued bold executives who d=
ealt with intangible assets. Pipelines, power plants-they may have been Enr=
on's pride, but Skilling wanted them gone. Expensive, long-term building pr=
ojects had no place when Wall Street was devoted to quick profits and enorm=
ous returns on investment capital, and Skilling knew it. "It wasn't the tim=
e for long-term approaches," an Enron executive says of Wall Street's mood.=
"It was the technology era."
To rid Enron of the last vestiges of its past, Skilling had to take on Rebe=
cca Mark, long considered his rival for the CEO's job. Mark was for many ye=
ars the poster child for the Enron way: Young, attractive, aggressive-her n=
ickname was Mark the Shark-she came from sturdy Midwestern stock but had th=
e requisite Harvard MBA. Mark was largely responsible for the success of En=
ron International, the asset-heavy side of the company where she developed =
$20 billion worth of gas and power plants, which accounted for 40 percent o=
f Enron's profits in 1998. For this she reaped breathtaking compensation-on=
e Enron executive estimated $10 million-and adoring press clips, including =
two appearances on Fortune's list of the fifty most powerful women in corpo=
rate America.
But then Mark ran into trouble with a gas-fired power plant in Dabhol, Indi=
a, one of the largest ever constructed. She had played the game the Enron w=
ay: Taking Enron into a new market, she had finagled low import taxes (20 p=
ercent instead of the usual 53) and hung in through 24 lawsuits and three c=
hanges in government. But the time and expense needed to make India and oth=
er Enron plants around the globe successful did not mesh with Enron's goals=
, and Skilling's impatience with Mark grew.
Forcing Mark out, however, was no easy matter. Key executives left, divisio=
ns were dismantled, but she remained. The truth was Enron didn't mind firin=
g lower-level employees, but it hated to fire the kind of aggressive, relen=
tless people it tended to promote. The company preferred humiliation-keepin=
g a director in his cubicle, say, but failing to include him in the glamour=
deals, or kicking someone upstairs with a fancy title. (One particularly d=
ifficult executive won a few years at graduate school, gratis.) A company a=
s smart as Enron could probably deduce too that dispatching one of the most=
visible businesswomen in the country would provoke a public-relations disa=
ster. So Lay and Skilling did something classically Enronian: They gave Mar=
k her own company. Despite Skilling's contempt for asset-heavy businesses, =
Enron spent more than $2 billion to buy a run-of-the-mill British water uti=
lity that could serve as Enron's entry into the emerging world of water pri=
vatization. Mark was put in charge of making Enron, yes, the world's greate=
st water company. Azurix, as the new business was called, looked like anoth=
er sure thing: Its IPO in 1999 raised $695 million.=20
But Mark had to succeed on Enron's increasingly abbreviated timetable in a =
business fraught with political and emotional complexities. Water is not li=
ke gas or electricity-owners and governments are a lot less willing to give=
it up, even for lots of money. The company stumbled, layoffs commenced, an=
d confidence evaporated. By August 2000 the stock price, which had started =
out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much=
diminished, was folded into Enron. "I think it's best for Rebecca to start=
afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal.=
Or as one critic put it, "They were more interested in destroying the old =
culture than running a business."=20
As 2000 drew to a close, Skilling was in total command. In December Ken Lay=
announced the inevitable: "The best time for the succession to occur is wh=
en the company is doing well," he told the press. "Enron is doing extremely=
well now." In February 2001 Jeff Skilling took over the CEO's job.
ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-=
power market made it an instant target in the California deregulation debac=
le. Both PBS's Frontline and the New York Times took on Enron, portraying t=
he company as a heartless colossus that used its influence in Washington (L=
ay and Enron's political action committee are the top contributors to Georg=
e W. Bush) to force old people on fixed incomes to choose between buying fo=
od or electricity. Skilling and Lay appeared on camera singing belligerent =
anthems to the free market, while another memorable scene juxtaposed one of=
the company's jackallike traders against a hapless state employee in Calif=
ornia, as both tried to buy power online. The Times reported that Lay had t=
ried to persuade a new federal commissioner to change his views on energy d=
eregulation. The bad press was, to say the least, ironic: Just as the media=
was pounding Enron for its omnipotence, Wall Street was discovering its we=
aknesses. By late March the stock price had slid to $50 a share from $80 in=
January.
Within Enron, the asset-based divisions took the rap for the decline. (The =
India plant continued to be enormously costly, at least in part because of =
constant turnover within Enron's management team.) But the California situa=
tion was more visible and therefore more damaging, despite Enron's claim th=
at the state had never built enough power plants to service its population =
and never properly managed those it had. "For three months Gray Davis did a=
very good job of blaming us," says Mark Palmer, a vice president for corpo=
rate communications. "We were a Texas company. There was a Texan in the Whi=
te House. California was a state that didn't put him in office, and his big=
gest contributor was a Texas energy company. Performance is going to take c=
are of our stock price. The truth will take care of Gray Davis." (Californi=
a utilities still owe Enron $500 million, another reason stockholders might=
be panicky.) But more problematic than the crisis itself was Skilling's al=
l too apparent lack of contrition. Facing down his critics, he cracked a jo=
ke comparing California with the Titanic. ("At least the Titanic went down =
with its lights on.")
But the biggest problem was Enron's telecommunications division, which had =
been responsible for at least one third of its heady stock price. Investors=
believed that Enron could revolutionize high-speed communications, just as=
it had revolutionized gas and power. Enron estimated the global market for=
buying and selling space over fiber-optic cable would grow from $155 billi=
on in 2001 to $383 billion by 2004-but then the tech bubble burst. So too d=
id the much-hyped movies-on-demand deal with Blockbuster. For the first tim=
e in its confoundingly successful life, Enron had nothing new to take to ma=
rket. Like the popular high school girl who suddenly packs on a few pounds,=
Enron suddenly looked less alluring to Wall Street.
Skilling launched a campaign to keep Enron's most important cheerleaders, t=
he stock analysts, in the tent, but he wasn't cut out to be a supplicant. D=
uring the reporting of first quarter profits, he called an analyst who chal=
lenged Enron's financial reporting an "asshole." When the company reported =
hefty second quarter profits, many analysts questioned whether those profit=
s had come from the generation of new business or from the sale of old asse=
ts. Ignoring the growing chorus critical of Enron's accounting, Skilling pr=
omised, as he always had, that innovations were just around the corner. "Th=
ere wasn't any positive news," Carol Coale, of Prudential Financial, says n=
ow. "Basically, he talked me out of a downgrade."
The business press, so generous in the past, turned surly. Fortune had aske=
d in March whether Enron was overpriced. ("Start with a pretty straightforw=
ard question: How exactly does Enron make its money?") The routine cashing =
in of stock options that were about to expire by key executives was portray=
ed in the media as a fire sale. (Skilling had sold $33 million worth, Ken L=
ay and Ken Rice close to four times that amount.) Then the Wall Street Jour=
nal reported on a fund run by the CFO that had been a source of strife with=
in the company. (It was essentially risk management against Enron's possibl=
e failures.) Every negative story seemed to produce a concurrent drop in th=
e stock price: By late August it had fallen below $40. Enron, so institutio=
nally unforgiving, finally got a taste of its own medicine. "When Wall Stre=
et is in love with a stock, they're forgiving of something like accounting,=
" says Carol Coale. "When a company falls out of favor, all these issues ca=
rry more weight."
This fact was not lost on people inside the company, who suddenly started e=
xperiencing an attack of conscience. Those who had looked the other way as =
the most powerful Enron executives dumped their wives and married their sec=
retaries or carried on flagrant interoffice affairs now saw the error of th=
eir ways. "It just created an attitude," one executive still at Enron says.=
"If senior people are doing that, why are we held to a higher standard? Th=
ere was a real culture of 'We're above everyone else.'"=20
Loyalty had never been prized at Enron, so there was no reason to expect it=
now. An old-fashioned, slow-moving company like Exxon could demand hardshi=
p duty in Baku with the promise of greater rewards down the road. "But," as=
one Houston oilman explains, "if you have to negotiate a hardship duty wit=
h someone who doesn't have loyalty and has money, then you have a corporati=
on that's better suited for good times than bad."
As it turned out, that description applied to Jeff Skilling too. As the sto=
ck price stubbornly refused to ascend, he made no secret of his unhappiness=
and frustration. Then, after a trip to visit the families of three employe=
es killed at a plant in England, he had an epiphany: Life was short; for hi=
m, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named =
a new president, arranged a trip to New York to calm analysts and investors=
, and promised a kinder, gentler Enron in the future. Trading anything and =
everything was out. The company, Lay says, will still innovate but "innovat=
e much closer to our core." As for the culture: "Things like the Performanc=
e Review Committee, I think we could have applied better. By trying to cate=
gorize people into so many different categories, you ended up creating a mo=
rale problem."
That Skilling's supposedly brilliant colleagues were as shocked at the news=
of his departure as the rest of the business community may be testament to=
their lack of emotional intelligence. Despite Skilling's lengthy tenure wi=
th Enron, he'd always been contemptuous of the long haul; he'd always belie=
ved in cutting losses and moving on. But now that he was abandoning them wh=
en the company was in trouble, it was different. "Even Jeff's biggest detra=
ctors wouldn't have wanted him to walk out the door," one loyalist admits.
But on the day we meet, Skilling is looking forward, not back. "Look," he s=
ays with finality, "ninety percent of my net worth is in Enron. Were my int=
erests aligned with the shareholders? Absolutely."
Free of falling stock prices and shareholder pressures, he is nestling hims=
elf back into the world of ideas. His eyes flash as he talks about new tech=
nologies. "The first wave never gets it right," he says. "The stand-alone d=
ot-coms didn't work, but the technological applications will create a secon=
d wave that will change the world." Houston, he promises, will become the w=
orld's center of commodity trading, and he intends to be a part of it. In f=
act, he is already shopping for office space.
"This is the second wave, and Enron's got it," he says, almost breathless. =
"There are thousands of people running around the streets of Houston that g=
et it."
Enron Fails to Smooth Things Over
By Peter Eavis <mailto:[email protected]>
Senior Columnist
TheStreet.com
10/23/2001 01:07 PM EDT
URL: <http://www.thestreet.com/markets/detox/10002864.html>
Enron (ENE:NYSE - news - commentary) held a special conference call Tuesday=
to address investor concerns that have weighed heavily on its stock.=20
But worries may persist after the energy trader offered few new details and=
the CEO publicly sparred with a gadfly investor over a shadowy off-balance=
sheet transaction.=20
The transaction that has drawn most attention in the past week is a complex=
financing that Enron entered into with a partnership called LJM2, which wa=
s led by Enron's finance chief Andrew Fastow. Terminating this arrangement =
led to a $1.2 billion equity reduction in the third quarter. Monday, Enron =
stock plunged 20% after the company said the Securities and Exchange Commis=
sion is probing "related party transactions." Executives declined to respon=
d to questions about Fastow's role in the LJM2 partnership on the Tuesday c=
all.=20
Another key issue is the impact of the equity reduction. The company said o=
n the call that its share count would decline by 60 million in the fourth q=
uarter, due to the termination of the LJM2 financing. But CEO Ken Lay said =
the company wouldn't be increasing its earnings guidance of $1.80 a share f=
or 2001 and $2.15 for 2002.=20
When a share count drops, earnings per share should normally increase, assu=
ming the earnings number stays constant. The 60 million shares are equivale=
nt to about 6.5% of the company's diluted total in the third quarter. As a =
result, Enron should have raised its per-share profits forecast by about th=
at much, assuming constant earnings.=20
When asked on the call if earnings per share guidance would be increasing, =
CEO Lay replied that the company had previously increased its guidance for =
this year. He then affirmed the 2002 number.=20
Now, to be fair, Enron may not be forecasting lower earnings. The planned r=
eduction in shares may simply bring the total share count back close to a l=
evel in the fourth quarter and 2002 that analysts had originally expected. =
Notably, the share count in the third quarter jumped by 20 million, meaning=
a fourth-quarter reduction might not change matters that much. Alternative=
ly, Enron may beat fourth-quarter estimates by 6.5%; perhaps the company ha=
s simply chosen not to increase guidance at this stage, given uncertainties=
in the economy. In any case, more clarity on this matter is clearly needed=
.=20
Calls to Enron weren't immediately returned. The stock edged up 2% Tuesday =
after falling nearly 40% since last week amid worries about complex off-bal=
ance sheet deals.=20
The call, arranged after Enron's Monday plunge, contained a lot of queries =
about two trusts, called Marlin II and Whitewing, against which Enron borro=
wed some $3.4 billion. Lay became testy after questioning by Richard Grubma=
n of Boston-based hedge fund Highfields Capital Management. Grubman, who wa=
s called an "a--hole" by Enron's former CEO Jeff Skilling on an April confe=
rence call, was trying to find out the value of water assets held by Marlin=
II. The optimal way of paying back money borrowed through the trust is to =
sell the water assets.=20
Grubman's line of questioning implied that the Marlin assets were worth onl=
y about $100 million, meaning Enron would have to find about $900 million t=
o pay off the Marlin II-related debt. Grubman arrived at $100 million after=
factoring in what he saw as the effects of a third-quarter writedown to wa=
ter assets, some of which are included in Marlin II.=20
Lay disputed the $100 million number. At one point, he accused Grubman of d=
riving Enron's stock down and monopolizing the Tuesday conference call. In =
the middle of Grubman's comments, Lay told the call operator to go to the n=
ext caller.=20
Grubman didn't immediately return a call seeking comment.=20
If Enron has to find $900 million, this can be done by issuing stock or rai=
sing cash on its balance sheet. If the latter route is taken, Enron says it=
's likely to use asset sales to generate the cash. Enron executives said li=
quidity would be sufficient and detailed at least $3.35 billion in availabl=
e credit lines.=20
But if Enron's debt-to-capital ratio exceeds 65%, the covenants on some of =
those lines are broken. After the $1.2 billion equity writedown and other c=
harges taken in the third quarter, that ratio is probably about 50%-55% (En=
ron hasn't released a third-quarter balance sheet to arrive at an exact cal=
culation). It would take $3 billion in further writedowns or charges to pus=
h Enron's debt-to-capital ratio up to 65%.=20
Stocks=20
More Static For Enron=20
Forbes.com staff, Forbes.com
10.23.01, 11:15 AM ET=20
NEW YORK - Enron scrambled again to reassure investors this morning, after =
it disclosed yesterday that the U.S. Securities and Exchange Commission had=
asked for information on partnerships run by Chief Financial Officer Andre=
w Fastow and other executives.=20
Enron (nyse: ENE ) last week reported a third-quarter loss of $638 million =
after taking $1.01 billion in charges on ill-fated investments. The market =
took that in stride until media reports parsed the earnings announcement an=
d disclosed that $35 million of those losses were connected with the two li=
mited partnerships run by Fastow. Enron shares, which plunged 23% last week=
, nosedived another 21% yesterday. Enron bounced back slightly in morning t=
rading.=20
The turmoil makes it clearer than ever that the energy trader's problems we=
ren't solved by the recent departure of Chief Executive Jeffrey Skilling.=
=20
AES Says Indian State Interfering In Ops, Complains To PM
10/23/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW DELHI (AP)--After Enron Corp. it is the turn of U.S.-based AES Corp. to=
seek the Indian prime minister's help to settle its grievances with a stat=
e government.=20
In a letter to Atal Bihari Vajpayee, AES Corp.'s President Dennis W. Bakke =
said his company's determination to continue in India was being tested by t=
he government of eastern Orissa state.
The letter, a copy of which was made available to the Associated Press Tues=
day, was dated Oct. 1 and appeared to have been faxed to the office of Prim=
e Minister Atal Bihari Vajpayee.=20
The Virginia-based energy company operates two power plants in Orissa, hold=
s 49% of the Orissa Power Generation Corp. and manages the main power distr=
ibution company in the state.=20
AES Corp. is the other major American power company besides Enron Corp. to =
have made big investments in India after the government allowed foreign inv=
estment in the power sector in the early 1990s.=20
In his letter, Bakke drew Vajpayee's attention to the "expropriation, repea=
ted contract violations, intimidation ... and direct interference with day-=
to-day management" by the state government and its agencies. The letter als=
o complained about government-run agencies failing to pay 2.1 billion rupee=
s ($1=3DINR47.985) in bills.=20
"If the situation faced by AES is not remedied urgently, it will undermine =
the trust and confidence of foreign investors in India," Bakke wrote. "Whil=
e AES still remains committed to India as a country it would very much like=
to serve, our determination to continue is being tested."=20
The prime minister's office said it wasn't ready to comment on the report. =
Officials of the Orissa state government weren't available to respond to Ba=
kke's charges in view of a Hindu festival.=20
AES Corp. has already offered to withdraw from the distribution company - k=
nown as the Central Electricity Supply Company of Orissa. However, it has s=
aid that the company will continue with its interests in electricity genera=
tion.=20
If AES Corp. decides to pull out completely, it will the third American com=
pany to do so.=20
Cogentrix Inc. quit a power project in southern India before it was started=
, while Houston-based Enron is in the process of withdrawing from the Dabho=
l Power Project in western Maharashtra state, India's biggest ever foreign =
investment project.=20
On Sept. 14, Enron Corp. Chairman Kenneth L. Lay wrote a letter to Vajpayee=
threatening legal action to pursue claims of up to $5 billion relating to =
the Dabhol Power Co. dispute and questioned India's ability to honor its co=
ntracts.=20
Lay had also warned that India may find it hard to attract foreign investor=
s in the future because of the payment dispute with the Dabhol project, whi=
ch stopped production and construction in May.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
U.S.-based AES Corp. complains about harassment from Indian state governmen=
t
By RAJESH MAHAPATRA
Associated Press Writer
10/23/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
NEW DELHI, India (AP) - The U.S.-based operator of two Indian power plants =
is seeking the help of Prime Minister Atal Bihari Vajpayee in its battle ag=
ainst alleged corporate intimidation leveled by local government authoritie=
s.=20
AES Corp. President Dennis W. Bakke addressed the concerns in an Oct. 1 let=
ter to Vajpayee, obtained Tuesday by the Associated Press.
In the letter, the Virginia-based energy company cited the "expropriation, =
repeated contract violations, intimidation ... and direct interference with=
day-to-day management" by the local government in the Indian state of Oris=
sa.=20
AES operates two power plants in Orissa, holds 49 percent of the Orissa Pow=
er Generation Corp. and manages the main power distribution company in the =
state.=20
The complaint follows a similar appeal made to Vajpayee on Sept. 14 by Enro=
n Corp., the only other major U.S. power company to make big investments in=
India after the government allowed foreign investment in the power sector =
in the early 1990s.=20
In that case, Enron Chairman Kenneth L. Lay threatened legal action to purs=
ue claims of up to dlrs 5 billion over a dispute with the Dabhol Power Co.,=
and questioned India's ability to honor contracts.=20
The prime minister's office said it was not ready to comment AES's complain=
t. Officials of the Orissa state government were not available to respond t=
o Bakke's charges.=20
"If the situation faced by AES is not remedied urgently, it will undermine =
the trust and confidence of foreign investors in India," Bakke wrote. "Whil=
e AES still remains committed to India as a country it would very much like=
to serve, our determination to continue is being tested."=20
AES Corp. has already offered to withdraw from the power distribution compa=
ny - known as the Central Electricity Supply Company of Orissa.=20
If AES Corp. decides to pull out completely, it will the third American com=
pany to do so.=20
Cogentrix Inc. quit a power project in southern India before it was started=
, while Houston-based Enron is in the process of withdrawing from the Dabho=
l Power Project in western Maharashtra state, India's biggest ever foreign =
investment project.=20
(rkm/lak/hg)
| ||
arnold-j/deleted_items/44.
|
subject: Enron Center South (ECS) Move Back-up Plan
content: A backup seat and a backup computer have been assigned to you. Please read this communication in detail.
Purpose: Net Works has developed a backup plan for possible work stoppages after moving to the new building. A wider business continuity plan will be rolled out next year.
Location: Large areas of the 30th and 31st floors of the current building, Enron Center North, will be set aside for recovery purposes. Your name has been put on the list and you will be notified once the seat assignments are finalized. Locations will also be posted at the entryways on the 30th and 31st floors.
Timing. Through November, backup seats assignments will be announced as each trading group moves to the new building. The backup seats will be available at least to January 1st.
Testing. Test times to try the backup PC and to familiarize yourself with your backup location will be announced by the IT team as the locations are finished.
Telephones. Only regular phones will be available. For those with speed dial phones, the IT team will download the numbers and leave them on a piece of paper at your seat assignment. Because the numbers change frequently, we ask that you rely on keeping track of the numbers yourself and use the number lists as a last resort.
Other supplies. The IT team is not responsible for non-technical or special needs. If you rely on hard copy forms, address books, etc, you will need to be sure to leave appropriate supplies when you test the computer, or bring supplies along if you are asked to move to your backup seat.
Limited Access. The backup floor is not meant as a backup day-to-day work environment. To keep the equipment functioning and secure, we plan to limit access except for test times and if we need to invoke the plan because of a work stoppage.
Escalation Procedures. The plan will be as follows:
I. During regular business hours
A. Announcement. You will be notified via the PA system if you need to move to the backup location.
-OR-
B. No Announcement. If an obvious problem like a fire or power shutdown occurs, for example, all personnel with a seat assignment will be expected to make their way to their backup seat without notification.
II. After hours
For after hours issues, greeters will announce the move to the backup location as people arrive to work. E-mails and voice mails will also be distributed.
| ||
arnold-j/deleted_items/440.
|
subject: Save $5 on Business & Investing e-Book Downloads
content: [IMAGE]
[IMAGE]
As someone who's purchased Business & Investing books at Amazon.com, you're invited to save $5 the first time you download any e-book--including hundreds of insightful Business & Investing titles--using Microsoft Reader 2.0. It's quick. It's easy. And best of all, you can be reading in minutes. Get started now . Download and activate Microsoft Reader 2.0 for free. And get $5 off your first e-book. [IMAGE] [IMAGE] [IMAGE]
We hope you enjoyed receiving this message. However, if you'd rather not receive future e-mails of this sort from Amazon.com, please visit your Amazon.com account page . Under the Your Account Settings heading, click the "Update your communication preferences" link.
Please note this e-mail was sent to the following address: [email protected]
| ||
arnold-j/deleted_items/441.
|
subject: RE: Vacation.....Cancellation
content: Well, that was a quick vacation! Monday is NX1, for some reason I was thinking NX1 was Friday....will reschedule. Thanks.
-----Original Message-----
From: Arnold, John
Sent: Monday, October 22, 2001 11:22 PM
To: Cavazos, Amy
Subject: RE: Vacation
okey-dokey
-----Original Message-----
From: Cavazos, Amy
Sent: Mon 10/22/2001 3:48 PM
To: Arnold, John
Cc:
Subject: Vacation
Since I still have 3 weeks vacation remaining, I've scheduled 2 days vacation for Monday and Tuesday (Oct 29 and 30), and I'll take 3 more days before the end of the year and just rollover 2 weeks into next year. I'll inform the appropriate parties. Thanks!
P.S......still averaging between 0-2 changes per month!!!
| ||
arnold-j/deleted_items/442.
|
subject: Trading Track Interviews
content: John/John/Frank
As we are approaching the November 1st Trading Track interview dates, we need to finalize the reminder of the external candidate's initial screen.
Can you please provide me with your feedback/status. If we need to re-assign your candidates to other traders please let me know by return.
Thanks,
Karen
x54667
| ||
arnold-j/deleted_items/443.
|
subject: Trading Track (ENA)
content: All,
We have 16 internal and 8 external candidates been interviewed for the ENA Trading Track November 1st. Please advise if you would like to make any final recommendations on internal candidates to be interviewed.
Internal Candidates:
Benke Terrell
Burt, Bart
Freeman, Scott
Giron, Gustavo
Hamlin Mason
Huang Jason
Hull Bryan
Jennaro Jason
Lenart Kirk
Lieskovsky Jozef
Ordway Chris
Pan Steve
Royed Jeff
Saavas Leonidas
Schlesenger Laura
Sell, Max
Total: 16
External Candidates:
Fred Baloutch
Randy Hebert
Ferando Leija
Agustin leon
Zoya Raynes
Carl Zavattieri
Eric Moncada
Gabe Weinart
Total: 8
NB: Awaiting feedback from 3 traders on 6 remaining external candidates.
| ||
arnold-j/deleted_items/444.
|
subject: Trading Track Contact
content: Adrianne Engler
| ||
arnold-j/deleted_items/445.
|
subject: Enron Mentions
content: Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
Bloomberg, 10/23/01
Enron Corp. Cut to `Reduce' at Edward Jones
Bloomberg, 10/23/01
Enron CFO: Company Has Sufficient Liquidity
Dow Jones News Service, 10/23/01
Enron says shareholders' 'best interests' were sought in all LJM dealings
AFX News, 10/23/01
US class action suit filed against Enron for misleading statements
AFX News, 10/23/01
Word of SEC probe puts Enron into deep dive: Problems mount
National Post, 10/23/01
City - SEC inquiry sparks Enron share fall.
The Daily Telegraphm 10/23/01
Shares of Enron Plummet 21% Energy: SEC requests information from company on series of unusual financial deals tied to executive.
Los Angeles Times, 10/23/01
Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
2001-10-23 10:11 (New York)
Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
(Adds comment from CFO Fastow in fourth paragraph, Enron's
short-term borrowing rates in seventh paragraph.)
New York, Oct. 23 (Bloomberg) -- Enron Corp., the biggest
energy trader, has asked Citigroup Inc. to arrange a $750 million
loan, ensuring access to credit if the embattled company is cut
off from money markets, say people familiar with the matter.
Enron's shares and bonds plunged yesterday after the company
said the Securities and Exchange Commission was probing its
finances. The Houston-based business, whose stock has fallen 75
percent this year amid concerns about failed investments, depends
on a $3 billion commercial paper, or short-term debt, program to
finance day-to-day operations.
Earlier this month, Moody's Investors Service placed all $13
billion of the company's long-term debt securities on watch for
possible downgrade. As a second-tier commercial paper borrower,
any drop in its rating may cut off Enron from the commercial paper
market and raise the costs of short-term debt.
``We understand that our credit rating is critical to both
the capital markets and our counterparties,'' Enron's Chief
Financial Officer Andrew Fastow said on a conference call today.
He said Enron has $3.5 billion available on bank credit lines,
giving it enough cash to operate normally.
Enron shares rose as much as 12.6 percent during the call to
$23.25. They pared the gain to $21.80, up $1.15.
Dan Noonan, a spokesman for Citigroup's Citibank NA unit,
declined to comment. Mark Palmer, a spokesman for Enron, declined
to comment.
Commercial Paper Rates
Enron was paying 3.15 percent to issue commercial paper until
Oct. 31, which is as much as 15 basis points more than companies
with the same ``A2/P2'' short-term credit ratings that are not on
credit watch. Enron's short-term debt is not on review for a
possible downgrade.
Enron has previously turned to Citigroup for finance and
advice. In 1999, Citigroup's Salomon Smith Barney unit advised the
company on its $1.45 billion acquisition of three natural gas-
fired power plants from Cogen Technologies Inc. Citibank, along
with J.P. Morgan Chase & Co., this year arranged a $1.75 billion
loan.
Earlier this week, an investor sued Enron, saying two
partnerships cost the company $35 million and Fastow's leadership
of them was a conflict of interest.
The SEC has asked Enron about partnerships and affiliated
companies headed by Fastow. Dismantling some of the partnerships
would cost Enron or its shareholders as much as $3 billion, Ray
Niles, a Salomon Smith Barney analyst, wrote in a report to
investors.
Enron created partnerships and affiliated companies to buy
and sell assets such as power plants to lower the debt on its
books.
Investors said they were concerned that Enron may be forced
to dismantle the affiliated companies by paying off the owners in
cash or stock. Chief Executive Ken Lay said last week he may have
to ``unravel'' agreements that created the companies if Enron's
debt ratings fall too far.
--Mark Lake in the New York newsroom (212) 893-5989 or
Enron Corp. Cut to `Reduce' at Edward Jones
2001-10-23 11:42 (New York)
Princeton, New Jersey, Oct. 23 (Bloomberg Data) -- Enron Corp. (ENE US)
was downgraded to ``reduce'' from ``accumulate'' by analyst Zach Wagner at
Edward Jones.
--Michael O. Donohue in Princeton, New Jersey, (+1)609-279-3756.
Enron CFO: Company Has Sufficient Liquidity
By Christina Cheddar
Of DOW JONES NEWSWIRES
10/23/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Enron Corp. (ENE) Chairman and Chief Executive Kenneth Lay said the company had procedures in place to avoid conflicts of interest in dealings between Enron and partnerships that were set up and run by its chief financial officer, Andrew Fastow.
Last week, the Securities and Exchange Commission asked the Houston energy trading company to provide additional information about the partnerships, which Enron said were off-balance sheet financing vehicles used to hedge against fluctuations in the market.
In a conference call held Monday to discuss investor concerns about the SEC investigation and related matters, Lay said there was a "Chinese wall" in place to protect the interest of Enron shareholders.
The procedures were "rigorously followed," Lay said.
In previous filings with the SEC, Enron said the terms of the transactions with the partnerships were "reasonable compared to those which could have been negotiated with unrelated third parties."
Fastow resigned from the partnerships, which were known as LJM Cayman LP and LJM2 Co-Investments LP in late July.
The company also is involved in other off-balance sheet financing vehicles, including Marlin Water Trust II and Whitewing.
During the conference call, investors said they were frustrated by the complex nature of the trusts, and asked for more information.
Lay said the company would be providing a list of "Frequently Asked Questions" on its Web site later Tuesday that may provide more details.
After Enron disclosed the SEC investigation Monday, the company's stock sunk to its lowest level in 52 weeks, $19.67. Enron shares were recently trading up 47 cents, or 2.3%, at $21.12, in brisk volume that has already surpassed its average daily turnover of 6.3 million shares.
Lay said he was "extremely disappointed" in the current stock price.
"Our businesses are performing very well and we are continuing to conduct business," he said.
During the conference call, Enron officials declined to specify Fastow's role in the partnership, citing the ongoing SEC investigation and a derivative lawsuit filed against Enron that alleges its board breached its fiduciary duties by allowing Fastow to create and run the partnerships.
Enron officials also addressed concerns that investors had about the potential need to issue additional Enron stock.
Under certain circumstances, for example, if both Enron's stock and credit rating fall to certain levels, the company would need to issue additional shares to the partnerships, diluting the holdings of current shareholders.
Enron officials declined to say how much dilution would occur under a "worst-case scenario."
However, the officials said they doubted there would be a need to issue the additional stock because the company plans to work with the credit-rating agencies to prevent such an event.
Moody's put Enron on watch for a downgrade of its long-term debt last week after the company announced a $1 billion third-quarter write-off that produced a $618 million loss.
According to Lay, Enron's debt rating would need to fall several notches to below investment grade in order to trigger the need to issue more stock.
"We are committed to maintaining our ratings," Lay said. "Moody's said they would work with us," he added.
Furthermore, Fastow said, Enron expects to have "sufficient liquidity" to meet all its capital requirements.
Enron's efforts to unwind the LJM partnerships contributed to a reduction of $1.2 billion in shareholder equity. However, Enron's Lay said the lower number of shares outstanding wouldn't affect the company's earnings outlook.
Enron has said it expects to earn $1.80 a share in 2001 and $2.15 a share in 2002. The numbers are in line with the consensus estimates reported by Thomson Financial/First Call.
"Despite the economy going softer, we think we can meet that," Lay said.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron says shareholders' 'best interests' were sought in all LJM dealings
10/23/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Enron Corp said it sought the "best interests" of its shareholders in all its dealings with LJM Cayman LP and LJM2 Co-Investment LP, two partnerships which were set-up and run until recently by Enron chief financial officer Andrew Fastow.
"The board (of Enron) was fully aware and kept a real Chinese wall between Enron and LJM. Enron's shareholders best interests were sought in all LJM dealings," said Enron chief executive officer Kenneth Lay, in a conference call with analysts.
The company scheduled the call after Enron's stock slid 21 pct yesterday, when it revealed the Securities and Exchange Commission asked the company to provide information on certain related-party transactions.
Overnight, two class action lawsuits were launched by shareholders against Enron and its officers, alleging that operating results were also "materially overstated" as a result of the company failing to timely write-down the value.
In its third-quarter results last week, Enron announced a charge of 1.01 bln usd, of 1.11 usd per share, and an incremental 1.2 bln usd reduction in stockholders' equity, related to the unwinding of investments with the LJM partnerships.
According to the Wall Street Journal, Fastow resigned from the partnerships in July, due to growing suspicion over potential conflicts of interests.
During the call, Lay said that he, and Enron's board of directors, have "the highest faith and confidence in (Fastow)."
Lay also said the company remained confident that its current liquidity position allows it to meet all its obligations, and is confident of the outlook for its corporate rating.
Analysts have raised the possibility that, should Enron's credit rating and stock price continue to fall, the company may be obligated to issue millions of new shares to meet obligations with other entities it deals with.
ng/cml For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
US class action suit filed against Enron for misleading statements
10/23/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Milberg Weiss Bershad Hynes & Lerach LLP law firm said it filed a class action lawsuit yesterday against Enron Corp alleging that it issued misleading statements between Jan 18, 2000 and Oct 17, 2001, thereby inflating the company's share price artificially.
The suit was filed on behalf of Enron shareholders between the above period and is pending in the US District Court in Houston against Enron Corp, Enron CEO Kenneth Lay, former Enron CEO Jeffrey Skilling, who resigned recently, and Enron chief financial officer Andrew Fastow.
The suit claims that Enron issued statements which failed to disclose that the company was experiencing a declining demand for bandwidth and that its efforts to create a trading market for bandwidth failed because many market participants were not creditworthy.
The company's operating results were also "materially overstated as result of the company failing to timely write-down the value of its investments with certain limited partnerships" managed by the company's CFO. The suit additionally alleges that Enron was failing to write-down impaired assets on a timely basis in accordance with GAAP.
On Oct 16, Enron announced unexpectedly that it was taking third quarter non-recurring charges of 1.01 bln after-tax, or 1.11 usd per share, which it later revealed was due largely to the unwinding of investments with certain limited partnerships controlled by Enron's chief financial officer. Enron also announced it was cutting shareholder equity by 1.2 bln usd.
Enron's share price consequently fell sharply. During the class period, Enron insiders disposed of 73 mln usd of personally-held Enron common stock.
Holders of Enron stock between the class period in question may request appointment as a lead plaintiff no later than Dec 21, Milberg Weiss said.
Yesterday, Enron announced that the Securities and Exchange Commission has requested that it provide information regarding certain related party transactions.
jkm/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Financial Post: News
Word of SEC probe puts Enron into deep dive: Problems mount
David Howard Sinkman
Reuters
10/23/2001
National Post
National
FP2
(c) National Post 2001. All Rights Reserved.
NEW YORK - Shares of Enron Corp. slumped more than 20% yesterday after it said U.S. regulators are looking into company transactions, another blow to a company whose chief executive resigned in August.
A spokesman for North America's biggest buyer and seller of natural gas and electricity declined to discuss an inquiry by the U.S. Securities Exchange Commission, but said it was cooperating.
The SEC also declined to outline details of its inquiry.
Investor confidence in the company has been rocked by reports from The Wall Street Journal about its relationship with two limited partnerships that were run until recently by Enron's chief financial officer, Andrew Fastow.
The company also reported last week its first quarterly loss in more than four years, and took US$1.01-billion in charges and writedowns on ill-fated investments.
Problems at Enron surfaced two months ago when CEO Jeff Skilling resigned after six months at the helm.
Enron shares declined US$5.49, or 21%, to US$20.56 in afternoon trade on the New York Stock Exchange yesterday, shaving off almost US$4.2-billion of its market capitalization.
The stock, the biggest decliner by percentage loss on the NYSE, fell as much as 22.8% yesterday, when it opened at its lowest level since September 1998.
Enron declined to comment on whether the SEC's inquiry into "certain related-party transactions" involved the partnerships.
"Related-party transactions" is the heading used by Enron in its 1999 and 2000 annual reports to discuss dealings with its limited partnerships, LJM Cayman LP and the larger LJM2 Co-Investment LP, which engaged in complex hedging transactions involving company assets worth hundreds of millions of dollars.
Mr. Fastow severed his ties with the partnerships in June. LJM was set up in June 1999 for energy-related investments, and LJM2 in December 1999 for energy- and communication-related investments.
The Journal reported US$35-million of its third-quarter loss of US$638-million were connected with the limited partnerships
Curt Launer, an analyst at Credit Suisse First Boston, said investors should question Enron's use of real value accounting when the value of certain assets, "most notably in telecommunications," have declined precipitously.
"Investors have had several opportunities to question Enron's credibility and at each of those turns the share price has declined," Launer said.
Some analysts, though, cautioned against assuming fire when there might only be smoke.
"This is an inquiry, not an investigation, and I cannot imagine Enron's attorneys or accountants would allow it do to something illegal," said Merrill Lynch analyst Donato Eassey.
"It's easy for the market to kick a company when its down, but these challenges do not last for a solid company, and we think Enron is one."
The price of shares in the company is down 75% this year.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
City - SEC inquiry sparks Enron share fall.
By Simon English.
10/23/2001
The Daily Telegraph
P31
(c) Telegraph Group Limited, London, 2001
in New York
ENRON, the American power giant, saw its shares slump by a fifth yesterday after it revealed that the top financial watchdog is delving into firms managed by chief financial officer Andrew Fastow.
The Securities and Exchange Commission is requesting details of deals between the company and limited partnerships with which Mr Fastow has, or had, links.
Enron chairman Kenneth Lay said in a statement: "We welcome this request. We will co-operate fully and look forward to the opportunity to put any concern about these transactions to rest."
Questions were raised last week on Wall Street after the company announced a write-down of more than $1 billion due to failed investments in telecoms and other businesses.
The disclosure alarmed investors and sent the already battered shares down 23pc. Yesterday they fell another $5.30 ( #3.80) to $20.75 in early trading.
According to the annual report the "related party transactions", as Enron describes them, took place in 1999 and 2000, resulting in losses of $16m and $36m respectively.
Mr Lay said that auditors approved the deals, but would not give further details of what they were.
They are understood to have been hedging transactions against Enron shares and other assets made by partnerships called LJM Cayman LP and LJM2 Co-Investment JP.
"We believe everything that needed to be considered and done in connection with these transactions was considered and done," added Mr Lay.
The relationship between the investment losses and the SEC probe is not clear, though the inquiry seems to focus on the partnerships responsible for the hedging transactions.
Enron owns Teesside Power Station and Wessex Water in Britain and is the largest trader of natural gas in the US. Investors are concerned that the probe and the continued uncertainty about the extent of the problem will harm the company's credit rating.
An Enron spokesman said Mr Fastow continues to work and is not under any suspicion.
The SEC inquiry is "informal", says the company. The watchdog contacted Enron last Wednesday, the day of the results announcement. The SEC declined to comment.
Enron made a loss of $638m in the third quarter, its first in over four years.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business; Financial Desk
Shares of Enron Plummet 21% Energy: SEC requests information from company on series of unusual financial deals tied to executive.
NANCY RIVERA BROOKS
TIMES STAFF WRITER
10/23/2001
Los Angeles Times
Home Edition
C-1
Copyright 2001 / The Times Mirror Company
Shares of Enron Corp. set a 52-week low Monday on word that the Securities and Exchange Commission had asked for information about a complex series of financial transactions between the Houston-based energy giant and an investment partnership tied to a company executive.
Enron, the world's largest energy trader, said it had voluntarily provided information on "certain related-party transactions" that had been previously disclosed to the SEC.
"We welcome this request," said Kenneth L. Lay, Enron chairman and chief executive.
"We will cooperate fully with the SEC and look forward to the opportunity to put any concern about these transactions to rest," he said.
The SEC request is the latest in a parade of bad news for Enron, which has seen investments sour in telecommunications, retail electricity sales and water.
Investors have battered the company's stock, which once sold for nearly $85 a share in the last year, and many have criticized Enron's stingy meting out of financial information. But several Wall Street analysts remain upbeat on the stock, noting that the bulk of its businesses continue to thrive despite the growing economic downturn.
In August, Enron Chief Executive Jeffrey K. Skilling, one of the main architects of the company's strategy of shedding physical assets in search of trading profit, stunned Wall Street by resigning.
Skilling cited personal, family-related reasons, but later he acknowledged that the precipitous plunge in the company's stock price contributed to his departure.
On Monday, Enron shares plunged $5.40, or nearly 21%, to close at $20.65 on the New York Stock Exchange.
Enron's stock has lost nearly 40% of its value in the last week since it reported a surprise third-quarter loss of $618 million after $1.01 billion in charges reflecting the costs of recent failed investments.
But the charge also included $35 million related to what Enron described only as the "early termination during the third quarter of certain structured finance arrangements with a previously disclosed entity."
In a conference call with securities analysts about the earnings, the company mentioned that it had repurchased 55 million shares as part of the dissolution of its participation in the transactions.
But investors were stunned when stories last week in the Wall Street Journal detailed that the transactions were with a limited partnership organized by Andrew S. Fastow, Enron's chief financial officer, and that Enron had whittled $1.2 billion off its shareholder equity as it repurchased the shares and canceled a $1.2-billion note it had received from the partnership. Shareholder equity now stands at $9.5 billion.
The limited partnership, called LJM2, and Fastow reaped millions of dollars of profit through complex hedging transactions that involved Enron assets and stock, the Journal reported.
Lay said the transactions were reviewed by auditors and lawyers inside and outside the company and that the company board was fully informed.
A shareholder lawsuit charging that Enron's directors violated their fiduciary duty already has been filed in Texas state court.
Many companies set up limited partnerships for tax purposes, but it is unusual to allow company executives to run them, analyst say.
Investors also are upset by the unusually zealous way that Enron has guarded financial information, making it difficult to analyze the company's complex web of businesses.
And many are not confident that all the bad news has been released.
Analyst M. Carol Coale, who follows Enron and other energy companies for Prudential Securities in Houston, downgraded Enron to a "hold" from a "buy" rating Monday out of such frustration.
Coale said she has been getting misinformation or no information out of Enron.
But Bob Christensen, energy analyst with First Albany Corp., said that despite Enron's recent difficulties, the bulk of the business remains strong.
"I continue to tell investors that 70% of this company's business is growing at a 26% rate, and that was in the third quarter when this country had a very sharp economic slowdown going on," he said.
Investors are panicking because of a "bad news story that doesn't reflect reality," said Jon Kyle Cartwright, senior energy analyst with the Raymond James & Associates brokerage firm in St. Petersburg, Fla.
"They are the world's largest energy trader, and they are very good at that," Cartwright said.
"The reality is that everything is fine here," although more charges, perhaps $500 million worth, are expected in the next few quarters, related to businesses that Enron is selling.
GRAPHIC: Losing Its Spark / Los Angeles Times;
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
| ||
arnold-j/deleted_items/446.
|
subject: BNP PARIBAS Commodity Futures Weekly AGA Survey
content: Good Morning,
Just a reminder to get your AGA estimates in by Noon EST (11:00 CST).
Last Year +71
Last Week +63
Thank You,
Daryl Dworkin
BNP PARIBAS Commodity Futures, Inc.
_____________________________________________________________________________________________________________________________________
Ce message et toutes les pieces jointes (ci-apres le "message") sont etablis a l'intention exclusive de ses destinataires et sont confidentiels. Si vous recevez ce message par erreur, merci de le detruire et d'en avertir immediatement l'expediteur.
Toute utilisation de ce message non conforme a sa destination, toute diffusion ou toute publication, totale ou partielle, est interdite, sauf autorisation expresse.
L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS (et ses filiales) decline(nt) toute responsabilite au titre de ce message, dans l'hypothese ou il aurait ete modifie.
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This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender.
Any use not in accord with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except formal approval.
The internet can not guarantee the integrity of this message. BNP PARIBAS (and its subsidiaries) shall (will) not therefore be liable for the message if modified.
_____________________________________________________________________________________________________________________________________
| ||
arnold-j/deleted_items/447.
|
subject: RE:
content: I wanted to see how they would handle themselves - glad i did. I guess Schweig did all the yelling for everyone....
-----Original Message-----
From: Arnold, John
Sent: Tuesday, October 23, 2001 8:23 AM
To: White, Bill
Subject:
do you want to go to learn what happened or do you want to go yell at those guys/see those guys get yelled at?
| ||
arnold-j/deleted_items/448.
|
subject: We need news!
content: LAST CALL for BUSINESS HIGHLIGHTS AND NEWS for this week's EnTouch
Newsletter.
Please submit your news by noon today.
Thanks!
Kathie Grabstald
x 3-9610
| ||
arnold-j/deleted_items/449.
|
subject: ALL daily charts and matrices as hot links 10/24
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. ? 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude22.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas22.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil22.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded22.pdf
Dec WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clz-qoz.pdf
Dec Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf
Dec Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf
Dec/May Heat Spread http://www.carrfut.com/research/Energy1/hoz-hok.pdf
Jan/Feb Heat Spread http://www.carrfut.com/research/Energy1/hof-hog.pdf
Nov Gas/Heat Spread http://www.carrfut.com/research/Energy1/hux-hox.pdf
Dec Gas/Heat Spread http://www.carrfut.com/research/Energy1/huz-hoz.pdf
Nov/Mar Unlead Spread
http://www.carrfut.com/research/Energy1/hux-huh.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG22.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG22.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL22.pdf
Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606
| ||
arnold-j/deleted_items/45.
|
subject: Undeliverable:
content: Your message
To: [email protected]
Subject:
Sent: Fri, 5 Oct 2001 15:45:46 -0500
did not reach the following recipient(s):
c=US;a= ;p=Corporate;o=Houston;dda:[email protected]; on
Fri, 5 Oct 2001 15:51:34 -0500
The recipient name is not recognized
The MTS-ID of the original message is: c=US;a=
;p=Corporate;l=HOUEXCH10110052051T8405ZDS
MSEXCH:IMS:Corporate:Houston:HOUEXCH1 0 (000C05A6) Unknown Recipient
From: "Arnold, John" <[email protected]>
To: [email protected]
Subject:
Date: Fri, 5 Oct 2001 15:45:46 -0500
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2448.0)
X-MS-Embedded-Report:
Content-Type: text/plain; charset="iso-8859-1"
you doing anything tonight?
**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at [email protected] and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************
| ||
arnold-j/deleted_items/450.
|
subject: Nat Gas market analysis for 10-24-01
content: Attached please find the Natural Gas market analysis for today.
Thanks,
Bob McKinney
- 10-24-01 Nat Gas.doc
| ||
arnold-j/deleted_items/451.
|
subject: eSource Presents Briefings with Senior Industry Analysts - Energy
content: A Dialogue with Frost & Sullivan's Senior Industry Analyst, Energy Markets
&
Industry Analyst and Program Lead, Telecom and Bandwidth Services
Thursday, November 1st
eSource is pleased to host our first Analyst Summit to share insights into the Energy and Telecom/Bandwidth Markets
Please join
Patti Harper-Slaboszewicz, Senior Industry Analyst, Energy Markets
&
Rod Woodward, Industry Analyst, Telecom Services & Program Lead, Wholesale Services
He has authored a report on U.S. Bandwidth Services (Trading/Brokering/Online Exchanges)
Download report for free at http://esource.enron.com/hot_topics.asp
at 3:30 - 5:30 PM EB 5C2
Each presentation will last 35 minutes with 20 minutes Q&A
Agenda - Energy 3:30-4:30
? Frost & Sullivan capabilities - 10 minutes
? Energy speaker: New Region Challenges for Retail Electric Providers - 25 minutes
Development of transactional capability
Acquiring customers
Quick survey of offers online in ERCOT region
Rate offerings will be limited by current meter capabilities
ERCOT Retail Providers
Forecasting load
? Questions & Answers - 20 minutes
Agenda - Telecom/Broadband 4:30-5:30
? Frost & Sullivan capabilities - 10 minutes
? Telecom/Broadband speaker: Industry Insights - 25 minutes
Role of "Utilicom"/Energy providers in telecom
Overall wholesale market perspective
Overview of data services market
Insight and update on bandwidth trading services
? Questions & Answers 20 minutes
Please RSVP to Stephanie E. Taylor at 5-7928
|
All Enron Houston@ENRON <??SAll Enron Houston@ENRON>
|
|
arnold-j/deleted_items/452.
|
subject: Invitaton: An Evening of Hope and Healing
content: You're invited to join community and national experts as they discuss your most pressing concerns about September 11th and the ongoing issues we face as a nation.
Operation Hope: Reclaiming Our Future
One Step at a Time
A cooperative community effort to provide a free evening of information, for the entire family (ages 5 and up)
An evening of hope and healing and a blueprint on how to adapt to these challenging times!
Sponsored by Enron
Date: Thursday, October 25, 2001
Time: Registration from 6:15 PM - 6:50 PM
Program from 7:00 PM - 9:00 PM
Place: JW Marriott across from the Galleria on Westheimer
Admission is free, but by RSVP only because of limited space
To RSVP and for more information, please call 713-303-3966
Or Log On to
www.enronoperationhope.com
|
All Enron Houston@ENRON <??SAll Enron Houston@ENRON>
|
|
arnold-j/deleted_items/453.
|
subject: BNP PARIBAS Commodity Futures AGA Survey......RESULTS!!
content: Here are this week's survey results.
AVG +50
AVG w/o High & Low +50
Median +50
Standard Deviation 8
# of Responses 54
High +74
Low +30
Last Year +71
Thank You!
Daryl Dworkin
BNP PARIBAS
_____________________________________________________________________________________________________________________________________
Ce message et toutes les pieces jointes (ci-apres le "message") sont etablis a l'intention exclusive de ses destinataires et sont confidentiels. Si vous recevez ce message par erreur, merci de le detruire et d'en avertir immediatement l'expediteur.
Toute utilisation de ce message non conforme a sa destination, toute diffusion ou toute publication, totale ou partielle, est interdite, sauf autorisation expresse.
L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS (et ses filiales) decline(nt) toute responsabilite au titre de ce message, dans l'hypothese ou il aurait ete modifie.
----------------------------------------------------------------------------------
This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender.
Any use not in accord with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except formal approval.
The internet can not guarantee the integrity of this message. BNP PARIBAS (and its subsidiaries) shall (will) not therefore be liable for the message if modified.
_____________________________________________________________________________________________________________________________________
| ||
arnold-j/deleted_items/454.
|
subject: RE:
content: as well as could be expected given the circumstances. however, there is no way to explain away the underlying conflict of interest and error in judgment of the fastow thing.
-----Original Message-----
From: Arnold, John
Sent: Wednesday, October 24, 2001 8:26 AM
To: White, Bill
Subject: RE:
schweiger's been preparing for that mtg since wednesday. how do you think lay/whalley did?
-----Original Message-----
From: White, Bill
Sent: Wednesday, October 24, 2001 7:33 AM
To: Arnold, John
Subject: RE:
I wanted to see how they would handle themselves - glad i did. I guess Schweig did all the yelling for everyone....
-----Original Message-----
From: Arnold, John
Sent: Tuesday, October 23, 2001 8:23 AM
To: White, Bill
Subject:
do you want to go to learn what happened or do you want to go yell at those guys/see those guys get yelled at?
| ||
arnold-j/deleted_items/455.
|
subject: Clavijo to Discuss Open Cup Final on ussoccerfan.com Live Chat This
content: CLAVIJO TO DISCUSS OPEN CUP FINAL ON LIVE CHAT AT ussoccerfan.com THIS THURSDAY AT 1 P.M. ET
CHICAGO (Tuesday, October 23, 2001) - New England Revolution head coach and former U.S. National Team defender Fernando Clavijo will be available for a Live Chat event at ussoccerfan.com this Thursday, October 25 at 1 p.m. ET, to discuss the Revolution's match against MLS Cup 2001 runners-up Los Angeles Galaxy in the Lamar Hunt U.S. Open Cup Final this Saturday In order to participate in the Live Chat, fans must be registered members of ussoccerfan.com. Once signed into ussoccerfan.com, participants can join the chat by selecting "Live Chat" under "Interact" on the ussoccerfan.com navigation menu.
The 2001 Lamar Hunt U.S. Open Cup Final will crown a new champion on Saturday, October 27, at Titan Stadium in Fullerton, Calif. The championship final will be televised live at 2 p.m. PT (5 p.m. ET) on Fox Sports World and Fox Sports World Espa?ol.
Clavijo, 45, became the head coach of the New England Revolution before the 2000 season, guiding the team to its most successful season ever and leading the side to its first-ever playoff victory during the 2000 season. Clavijo had a stellar career as a player for both club and country, earning 61 caps with the United States. A part of the World Cup roster in 1994, he started and played the full 90 minutes in the USA's historic 2-1 win against Colombia. A 12-time All-Star, he was named the player of the 80's for the Major Indoor Soccer League.
Dating back to 1914, the 88-year-old U.S. Open Cup is the oldest soccer cup competition in the United States and is among the oldest in the world. In Saturday's match, the Galaxy will play in their third championship game of the year having previously claimed the CONCACAF Championship in January before losing 2-1 in overtime to the San Jose Earthquakes in the 2001 MLS Cup. Los Angeles is the first U.S. team to play in a Regional Championship, a Division I Championship and the U.S. Open Cup Final in the same calendar year. The New England Revolution, after going winless in two previous tournament appearances, will now play their first-ever tournament final in club history.
----------------------------------------------------------------------------
To end your membership in ussoccerfan.com, please visit http://membership.ussoccer.com/member/unsubscribe.sps?msmid=1 and fill out an unsubscribe request. Thank you for supporting U.S. Soccer!
| ||
arnold-j/deleted_items/456.
|
subject: BNP PARIBAS Commodity Futures AGA Survey......RESULTS!!
content: ---------------------- Forwarded by Daryl DWORKIN on 10/24/2001 12:43:01 PM
---------------------------
10/24/2001 11:55
AM Daryl DWORKIN
BNP PARIBAS
10/24/2001 11:55
AM
---------------------------------------------------
To: Daryl DWORKIN
cc:
bcc:
Subject: BNP PARIBAS Commodity Futures AGA Survey......RESULTS!!
Here are this week's survey results.
AVG +50
AVG w/o High & Low +50
Median +50
Standard Deviation 8
# of Responses 54
High +74
Low +30
Last Year +71
Thank You!
Daryl Dworkin
BNP PARIBAS
_____________________________________________________________________________________________________________________________________
Ce message et toutes les pieces jointes (ci-apres le "message") sont etablis a l'intention exclusive de ses destinataires et sont confidentiels. Si vous recevez ce message par erreur, merci de le detruire et d'en avertir immediatement l'expediteur.
Toute utilisation de ce message non conforme a sa destination, toute diffusion ou toute publication, totale ou partielle, est interdite, sauf autorisation expresse.
L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS (et ses filiales) decline(nt) toute responsabilite au titre de ce message, dans l'hypothese ou il aurait ete modifie.
----------------------------------------------------------------------------------
This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender.
Any use not in accord with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except formal approval.
The internet can not guarantee the integrity of this message. BNP PARIBAS (and its subsidiaries) shall (will) not therefore be liable for the message if modified.
_____________________________________________________________________________________________________________________________________
| ||
arnold-j/deleted_items/457.
|
subject: FW: Why Palestenians throw rocks
content: -----Original Message-----
From: Moon, Eric
Sent: Wednesday, October 24, 2001 10:28 AM
To: Griffith, John
Subject: FW: Why Palestenians throw rocks
-----Original Message-----
From: "Tami, Eric and Jake Moon" <[email protected]>@ENRON
Sent: Wednesday, October 24, 2001 9:58 AM
To: Julie Turner; Papa; Moon, Eric; Granny; Frank Jimenez
Subject: Fw: Why Palestenians throw rocks
Subject: FW: Why Palestenians throw rocks
> --------------------------------------------------------------------------
--
> --- <<ATT279523.txt>> <<WHYPALES.MPE>>
>
- ATT279523.txt
- WHYPALES.MPE
| ||
arnold-j/deleted_items/458.
|
subject: K@W Newsletter Oct. 24-Nov 6, 2001: What's Hot - How Swissair
content: Knowledge@Wharton Newsletterhttp://knowledge.wharton.upenn.edu
October 24-November 6, 2001
What's Hot
How Swissair Landed in Trouble
The problems of Swissair clearly multiplied after the September 11 terrorist attack and subsequent plunge in ticket sales. But industry experts say the company's woes run deeper, involving management missteps that could occur at any corporation as well as troubles rooted in the economics, politics and culture of Europe.http://knowledge.wharton.upenn.edu/whatshot.cfm
Finance and Investment
A New Approach to Valuing Biotech Stocks
Now that the U.S. faces a bioterrorist attack in the shape of anthrax, stocks of biotechnology companies are soaring. But while these companies have promising technologies, they are years away from profits. The boomlet shows, however, how hard it is to value biotech stocks. Analysts often use proxy drivers such as the number of patents or the dollar value of partnerships to value such companies, but these drivers fail to show if the companies will be able to turn their research into marketable products. Research by Karl Ulrich, a Wharton professor of operations and information management, and other colleagues offers insights into a new approach to value biotech companies. Hint: Look at how the company's drug discovery process is organized.http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=454
Finance and Investment
James J. Cramer Finds Truth and Inspiration in the Shopping Habits of Americans
When James J. Cramer, co-founder of Smart Money and TheStreet.com and analyst on CNBC, wants to know where the U.S. economy is headed, he looks at the performance of major retailers. That, and his observations on everything from gasoline to telecom to Winston Churchill, formed the basis for an optimistic economic outlook he recently shared with participants at the Wharton Investment Management Conference.http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=456
Finance and Investment
Should Hong Kong Worry When China Joins the WTO?
As Frederick Lau sees it, what's good for China is good for Hong Kong. Lau, chief representative of the Hong Kong Monetary Authority's New York office, talked about China's entry into the World Trade Organization - and other events that will have an impact on Hong Kong's future - during a meeting earlier this month with the Wharton Asia Club.http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=449
Managing Technology
Behind the Telecom Meltdown: Too Much Money, Too Little Foresight
While investors in the late 1990s remained oblivious to signs of trouble, it is clear in hindsight that the telecommunications bubble could not possibly have lasted, according to a panel of telecom experts at the October 12 Wharton Finance Conference. They cite a number of reasons for the unraveling of the industry, and point to Europe and Asia as the real leaders in telecom.http://knowledge.wharton.upenn.edu/articles.cfm?catid=14&articleid=451
Finance and Investment
Citigroup CFO Sees Economic Recovery in Mid-2002
"It is going to be a very, very tough next couple of quarters," is how Todd S. Thomas, CFO of Citigroup, described the near-term economic outlook to an audience at the Wharton Finance Conference on Oct. 12. But longer-term, Thomson was more optimistic, predicting that increased government spending and/or tax cuts would stimulate a recovery. He also suggested that the financial markets must learn to adapt to the reality of "continued minor terrorism."http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=450
Managing Technology
An Insider's Scathing Look at E-commerce Excesses
As a manager in an Old Economy firm, Brian Ross naturally felt defensive when proselytizers of the New Economy preached that the Internet "had changed everything" and folks (like him) who "just didn't get it" would soon be by-passed by competitors who did. Well, Ross has done more than survive; he has written a book entitled, When the Caffeine Wears Off: De-Hyping the New Economy, in which he cheerfully kicks 'em while they're down.http://knowledge.wharton.upenn.edu/articles.cfm?catid=14&articleid=452
-------------------------------------------------------------------------------
Links from Knowledge@Wharton Sponsors
GE Capital:
Sales-Leasebacks: Benefits and Challenges
Today CFOs must negotiate their way through a weakened economy. But even as they search for new ways to generate revenue and conserve capital, CFOs from a variety of industries are discovering the value of one strategy -- sale-leasebacks -- that for many years was primarily focused on real estate transactions. Sale-leasebacks are generally structured to unlock the equity a business has in its assets (like machinery and equipment), converting that equity into cash.http://www.gecfo.com/resources/wharton.html?c=Wharton&n=September&t=email
GE Capital:
Maximizing Your Trucking Fleet in Tough Times
Tough times have hit the trucking industry as shippers evaluate the best way to move goods around the country: Lease or buy? For-hire truckers or private fleet? The queries arise as a glut of used trucks comes on the market and some shippers evaluate how long they can stretch existing leases. Learn how to maximize your trucking fleet in tough times from the experts at Wharton and GE Capital.http://www.getrucking.com/resources/wharton.html?c=Wharton&n=Sept&t=email
-------------------------------------------------------------------------------
Help Spread Knowledge
Do you know people who might be interested in these research studies and
more? If you do, please forward this e-mail message to them.
The Knowledge@Wharton Newsletter is a free service of The Wharton School
(http://www.wharton.upenn.edu/ ) of the University of Pennsylvania. Its
companion web site, Knowledge@Wharton, includes full details of the
stories listed here. To read these stories, go tohttp://knowledge.wharton.upenn.edu/
To comment on these stories, go to:http://knowledge.wharton.upenn.edu/feedback.cfm
To unsubscribe from this newsletter, visit:http://knowledge.wharton.upenn.edu/unsubscribe.cfm
| ||
arnold-j/deleted_items/459.
|
subject: AGA Weekly Data
content: Attached please find this weeks summary of the most recent AGA working gas storage data.
Thanks,
Mark
- 10-24-01 AGA.doc
| ||
arnold-j/deleted_items/46.
|
subject: FW: Shut In Now and Generate Cash Flow
content: forgot to send this last week..
hope you had a good wknd..
ca
-----Original Message-----
From: Abramo, Caroline
Sent: Wed 10/3/2001 9:14 AM
To: Gomez, Julie A.; Lagrasta, Fred
Cc:
Subject: FW: Shut In Now and Generate Cash Flow
Morning.. this was produced by our marking desk in Houston who deals with small to midsize independent E&Ps who are small and predominately unhedged
The idea originated from statements by Mark Pappa at EOG.. that EOG could possibly shut in some production at certain price levels. It is a response to their intent NOT a suggestion.
This is not Enron's TRADING view.. we do not think there will be shut-ins the near term because:
The producers are looking to shut in at $1.75 levels.. this would have to occur for several months.. cash is currently at this level but contangos are at all time highs..Nov01 is 42 cents above this level, Dec01 is 83 cents above this level. CY02..$1.05 and CY03 $1.525!!!
so.. no one is shutting in now. as soon as we hear of anyone doing so, we will let you know..
So from a trading perspective we still advocate being short Nov, Dec, and 1st 6 months of CY02..
Please call me with questions.. I am in Houston this week (713-853-4759) and can set up discussions with John Arnold, Julie Gomez (our fundy specialist) or Jim Schweiger our Texas storage operator.
Coming... Rockies/ Canadian shut in thoughts..
<<Shut In Now and Generate Cash Flow.pdf>>
| ||
arnold-j/deleted_items/460.
|
subject: Don't need to call me back
content: Sorry I completely forgot it was Wednesday
| ||
arnold-j/deleted_items/461.
|
subject: New Products, Low Prices!
content: [IMAGE] =09
[IMAGE] [IMAGE] [IMAGE] Dear John, It's time to stock up on your =
favorite music, movies, books and more at buy.com! We just got in a number=
of new releases, and at just the right prices, too!As always, we thank you=
for choosing buy.com. Robert R. Price President, buy.com [IMAGE] [IM=
AGE] [IMAGE] Sony KV-36FV26 36" FD Trinitron=20
WEGA? Television $1,599.95 [IMAGE]more info You save 24% [IMAGE] Son=
y DVP-NS400D DVD/CD Player $199.95 [IMAGE]more info SAVE 14% [IMAGE] =
[IMAGE] [IMAGE] [IMAGE] Sopranos (Complete 2nd Season VHS) $73.=
99 [IMAGE]more info SAVE 26% [IMAGE] Shrek (Special Edition VHS) $1=
5.99 [IMAGE]more info SAVE 37% [IMAGE] Lara Croft - Tomb Raider (Spe=
cial Collector's Edition DVD) $18.49 [IMAGE]more info SAVE 39% [IMA=
GE] Legally Blonde (DVD) $19.99 [IMAGE]more info SAVE 25% [IMAGE] =
Harry Potter Boxed Set: #1-4 $49.95 [IMAGE]more info SAVE 31% [IMAG=
E] Britney: Britney Spears $11.95 [IMAGE]more info SAVE 38% [IMAGE=
] Invincible: Michael Jackson $13.99 [IMAGE]more info SAVE 27% [IMA=
GE] Lenny: Lenny Kravitz $12.95 [IMAGE]more info SAVE 27% [IMAGE] =
In addition to computer and software products, buy.com also offers top-o=
f-the-line electronics , best-selling books , videos , music and much more=
. [IMAGE] - I would like to unsubscribe to this eMail - I would like to =
visit buy.com now - I would like to view my account - I would like to con=
tact customer support [IMAGE] All prices and product availability sub=
ject to change without notice. Unless noted, prices do not include shipping=
and applicable sales taxes. Product quantities limited. List price refe=
rs to manufacturer's suggested retail price and may be different than actua=
l selling prices in your area. Please visit us at buy.com or the links abo=
ve for more information including latest pricing, availability, and restric=
tions on each offer. "buy.com" and "The Internet Superstore" are trademark=
s of BUY.COM Inc. ? BUY.COM Inc. 2001. All rights reserved. =09
[IMAGE]
| ||
arnold-j/deleted_items/462.
|
subject: TRV Notification: (NG - Price P/L - 10/24/2001)
content: The report named: NG - Price P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=10&report_name=NG+-+Price+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y¤t_efct_date=10/24/2001>, published as of 10/24/2001 is now available for viewing on the website.
| ||
arnold-j/deleted_items/463.
|
subject: The Daily Quote
content: [IMAGE]=09Quote.com=09 Log In| Sign Up| Account Mgt.| Insight Center=09[IMA=
GE]=09 Get Quote/LiveCharts: [IMAGE] [IMAGE] Find Symbol =09[IMAGE]=09
[IMAGE]=09=09=09=09[IMAGE]=09[IMAGE]=09
[IMAGE]=09=09=09=09[IMAGE]=09[IMAGE]=09
[IMAGE]=09=09=09=09[IMAGE]=09[IMAGE]=09
[IMAGE]=09 My Portfolio | LiveCharts | Stocks | News | Msg Boards =
| Markets | Funds | IPO | Options =09[IMAGE]=09
[IMAGE]=09[IMAGE] The Daily Quote=09[IMAGE]=09[IMAGE]=09
[IMAGE]=09=09Brought to you every morning as of 10 AM ET. Click on the MORE=
link for the most current information.=09[IMAGE]=09
=09=09=09=09[IMAGE]=09=09=09=09
=09=09 =09=09 [IMAGE] Markets Index Last Change % Chg Dow 9,345.62 =
[IMAGE]5.54 0.05% NASDAQ 1,731.54 [IMAGE]27.10 1.58% S?500 1,085.20 [IMAGE]=
0.42 0.03% 30 Yr 53.17 [IMAGE]0.64 -1.18% Russell 427.65 [IMAGE]0.28 0.06% =
- - - - - MORE[IMAGE][IMAGE] Enter multiple symbols separated by a space =
[IMAGE] [IMAGE]=09 =09 [IMAGE] Economic Calendar Date Release 10=
/24 Fed's Beige Book 10/25 Durable Orders 10/25 Employment Cost Index 10/25=
Initial Claims 10/25 Existing Home Sales - - - - - MORE[IMAGE] [IMAGE] =
[IMAGE] [IMAGE]Qcharts=09[IMAGE]=09
=09=09 =09 Quote of the Day =09=09=09 I always know we are very close =
to a rally when I start to question my own work.: Elaine Garzarelli =09[I=
MAGE]=09
[IMAGE]=09 [IMAGE] US Stocks Pct Gainers As of 10/24/2001 18:41 =
ET Symbol Last Change % Chg [IMAGE] BCON 1.74 [IMAGE]0.72 70.58% [IMA=
GE] SURE 15.41 [IMAGE]4.71 44.01% [IMAGE] PEGA 4.01 [IMAGE]1.21 43.21% =
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ocks finished narrowly higher after a fairly uneventful trasing day. Both s=
pent the session in a narrow range today, as market forces seemed fairly ba=
lanced. Rumors were circulating this morning before the bell that Osama Bin=
Laden had fallen victim to a coalition bomb, pushing futures up, but those=
rumors turned out to be false, and stocks slipped back down in early tradi=
ng. Traders are buying into companies who met or exceeded expectations, and=
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=09 [IMAGE] Stocks to Watch Abbott buys genetic test firm Vysis for =
$355 million Drugmaker Abbott Laboratories Inc. (NYSE:ABT) said on Wednesda=
y it has agreed to acquire laboratory products maker Vysis Inc. (NASDAQ:VYS=
I) in a stock deal worth about $355 million that is aimed at strengthening =
Abbott's position in the market for diagnosing diseases. Kodak quarterly pr=
ofit falls Eastman Kodak Co. (NYSE:EK), the No. 1 maker of photographic fil=
m, on Wednesday said its third-quarter profits fell sharply, hurt by slumpi=
ng consumer demand for its film and camera products. DuPont quarterly earni=
ngs drop on weak demand DuPont Co.(NYSE:DD), the No. 1 U.S. chemical compan=
y, on Wednesday posted a sharp drop in third-quarter earnings, citing tough=
economic conditions and weaker demand for its chemicals and plastics. Hone=
ywell's 3rd-Quarter Ongoing Net Income Is $360 Million - EPS $0.44 Honeywel=
l (NYSE:HON) said today third-quarter ongoing net income was $360 million o=
r $0.44 per share, excluding $668 million (after-tax) in repositioning and =
other charges. Reported third-quarter loss per share was ($0.38). A leaner =
Sears seen cutting jobs, product lines Sears, Roebuck and Co. (NYSE:S), wil=
l likely emerge from a wide-ranging review of its retail operations as a le=
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ro forma loss Reuters: 10/17/2001 16:39 ET - - - - - MORE[IMAGE] PEGA New=
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evenue BusinessWire: 10/23/2001 19:36 ET PEGASYSTEMS INC FILES FORM 10-Q (*=
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arnold-j/deleted_items/464.
|
subject: Want to find out how risky your portfolio is?
content: -----------------------------------------------------------------
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arnold-j/deleted_items/465.
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subject: <<Concur Expense Document>> - JRostant 10/24/01
content: The following expense report is ready for approval:
Employee Name: Justin K. Rostant
Status last changed by: Automated Administrator
Expense Report Name: JRostant 10/24/01
Report Total: $125.01
Amount Due Employee: $125.01
To approve this expense report, click on the following link for Concur Expense.
http://expensexms.enron.com
| ||
arnold-j/deleted_items/466.
|
subject: Jeff McMahon Named CFO
content: Today we announced the appointment of Jeff McMahon as Enron's chief financial officer. In my continued discussions with the financial community yesterday and today, it became clear that this move was required to restore investor confidence. Jeff has unparalleled qualifications and a deep and thorough understanding of Enron. He is already on the job and hard at work on the issues before us. Andy Fastow will be on a leave of absence from the company.
Jeff had been serving as chairman and CEO of Enron Industrial Markets. He joined Enron in 1994 and spent three years in the London office as chief financial officer for Enron's European operations. Upon returning to the U.S., Jeff was executive vice president of finance and treasurer for Enron Corp. In 2000, he was named president and chief operating officer of Enron Net Works.
I know all of you are concerned about the continuing decline in our share price. I am too, and we are working very hard to turn it around. Appointing Jeff as CFO is one important step in that process. But most of the solution involves just continuing to do our jobs with excellence. The fundamentals of our business are strong, and I think the market will begin to see that as we continue to perform.
Please join me in giving Jeff your full support, and thank you for all of your continued hard work.
|
All Enron Worldwide@ENRON <??SAll Enron Worldwide@ENRON>
|
|
arnold-j/deleted_items/467.
|
subject: FW:
content: -----Original Message-----
From: Davenport, Lacrecia
Sent: Wednesday, October 24, 2001 3:34 PM
To: Hayden, Frank
Subject: FW:
-----Original Message-----
From: Paraschos, Nick
Sent: Wednesday, October 24, 2001 3:32 PM
To: Lebrocq, Wendi; Wilhite, Jane; Valdez, Veronica; Davenport, Lacrecia; Figueroa, Xochitl
Subject:
Enron Names Jeff McMahon Chief Financial Officer
HOUSTON, Oct 24, 2001 /PRNewswire via COMTEX/ -- Enron Corp. (NYSE: ENE) announced today that it has named Jeff McMahon chief financial officer. McMahon had been serving as chairman and CEO of Enron's Industrial Markets group. From 1998 to 2000, McMahon was Enron's treasurer.
"Jeff has unparalleled qualifications and a deep and thorough understanding of Enron," said Kenneth L. Lay, Enron chairman and CEO. "He has the trust and confidence of our investors and financial institutions."
Andrew Fastow, previously Enron's CFO, will be on a leave of absence from the company. "In my continued discussions with the financial community, it became clear to me that restoring investor confidence would require us to replace Andy as CFO," Lay said.
McMahon, 40, joined Enron in 1994 and spent three years in the London office as chief financial officer for Enron's European operations. Upon returning to the United States, McMahon was executive vice president of finance and treasurer for Enron Corp. In 2000, he was named president and chief operating officer of Enron Net Works, where he had responsibility for Enron's e-commerce activities.
McMahon has a bachelor's degree in business from the University of Richmond in Virginia. He is a Certified Public Accountant, SFA registered and is a member of the American Institute of Public Accountants and Association of Corporate Treasurers.
Enron is one of the world's leading energy, commodities and services companies. The company markets electricity and natural gas, delivers energy and other physical commodities, and provides financial and risk management services to customers around the world. Enron's Internet address is www.enron.com . The stock is traded under the ticker symbol "ENE".
Mark Palmer
(713) 853-4738
| ||
arnold-j/deleted_items/468.
|
subject: Enron Mentions
content: Enron May Issue More Stock to Cover Obligations
The Wall Street Journal, 10/24/01
Enron Tries To Dismiss Finance Doubts
The New York Times, 10/24/01
Surge in Optimism Prompts Straddles In Enron and Cisco
The Wall Street Journal, 10/24/01
Lay tries to assure Enron investors
Houston Chronicle, 10/24/01
OBSERVER - Busy signal.
Financial Times (U.K. edition), 10/24/01
USA: Enron mulls ways to cover portfolio shortfalls-WSJ.
Reuters English News Service, 10/24/01
Enron May Issue More Stock to Cover Obligations
Dow Jones Business News, 10/24/01
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Los Angeles Times, 10/24/01
United States
The Globe and Mail, 10/24/01
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
The Wall Street Journal, 10/24/01
U.S. Energy Giant Weighs a Move To Pull Out of India
The Asian Wall Street Journal, 10/24/01
UK: LNG delays could spawn shipping crisis - analysts.
Reuters English News Service, 10/24/01
INDIA PRESS:British Gas Seeks ONGC Deal For Field Control
Dow Jones International News, 10/24/01
BG Offers ONGC Brazilian Assets to Get Managing Rights in India
Bloomberg, 10/24/01
House stimulus bill would give billions to huge companies; Senate Democrats present alternative
Associated Press Newswires, 10/23/01
Wechsler Harwood Halebian & Feffer LLP Announces Class Periods
PR Newswire, 10/23/01
Stock Analysis/Call In
CNNfn: Markets Impact, 10/23/01
Economy
Enron May Issue More Stock to Cover Obligations
By Rebecca Smith and John R. Emshwiller
Staff Reporters of The Wall Street Journal
10/24/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created. Covering such shortfalls could involve issuing additional Enron shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
During the past week, shares of the energy-trading giant have dropped more than 40%. Early last week, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. The company also disclosed a $1.2 billion reduction in shareholder equity for the quarter as a result of terminating certain transactions related to a partnership that for a time was headed by Enron Chief Financial Officer Andrew S. Fastow. In July, Mr. Fastow ended his connection to the partnership in the face of growing concerns by analysts and major investors. On Monday, Enron disclosed that the Securities and Exchange Commission was looking into the transactions related to Mr. Fastow. Enron has said its dealings with the partnership were proper.
The turmoil of the past several days prompted Enron to schedule a conference call yesterday morning with Wall Street analysts and others in an effort to reassure investors. Enron Chairman and Chief Executive Kenneth Lay said while "we are extremely disappointed with our stock price . . . our businesses are performing very well." Mr. Lay and other executives said Enron has adequate liquidity to meet its needs.
Mr. Fastow, the chief financial officer, took part in the conference call. But neither he nor Mr. Lay would answer any questions concerning the Fastow-related partnership, which was known as LJM2 Co-Investment LP. Mr. Lay said the SEC was in the midst of an inquiry concerning that partnership arrangement, which has raised conflict-of-interest questions among analysts and others. Mr. Lay cited shareholder suits filed recently as another reason not to discuss the partnership questions. Mr. Lay said he was "very concerned about the way Andy's character has been loosely tossed about." He added "we continue to have the highest faith and confidence in Andy."
Internal LJM2 documents indicate that Mr. Fastow and perhaps a handful of fellow Enron officials made millions of dollars in management fees and capital increases from running the partnership. Billions of dollars of Enron assets and stock were involved in LJM2-related transactions, according to Enron SEC filings.
During the conference call, analysts -- even some who have been longtime Enron fans -- challenged executives about the Fastow partnership arrangement and the company's often opaque financial reports. "There's the appearance you are hiding something," said Goldman Sachs analyst David Fleischer. "You need to do everything in your power to demonstrate to investors that your dealings are above board."
Mr. Lay responded, "We're trying to be as transparent as we can."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business/Financial Desk; Section C
Enron Tries To Dismiss Finance Doubts
By FLOYD NORRIS
10/24/2001
The New York Times
Page 1, Column 5
c. 2001 New York Times Company
Enron has ample access to cash, the company's chief executive said yesterday as he assured investors that there was no need for additional write-offs stemming from unusual financing activities.
In a conference call with investors that was hastily scheduled after Enron's stock plunged on Monday, the chief executive, Kenneth W. Lay, strongly defended the company's chief financial officer and said there was no conflict of interest involved in transactions that the Securities and Exchange Commission was looking into.
But he refused to go into detail on the transaction that Enron made with partnerships run by Andrew S. Fastow, the chief financial officer. In addition, Mr. Fastow, while declaring that Enron ''expects to continue to have sufficient liquidity to meet normal obligations,'' declined to answer any questions about it.
The conference call, which began just as trading opened on the New York Stock Exchange, at first seemed to be reassuring investors. Within minutes of the beginning of the call, the share price rallied to $23.25. But it soon began falling, and ended the day down 86 cents, at $19.79. The day's low of $19.62 was the lowest since Jan. 12, 1998, and was down 78 percent from the high set by the stock in the summer of 2000.
Until recently, most investors focused on the company's reported operating earnings, which showed good results as it became a leading player in energy markets. But the focus has shifted to a series of transactions, some involving off-balance-sheet financing. One, involving partnerships controlled by Mr. Fastow, led to a $1.2 billion reduction in shareholder equity that raised concern last week and led to S.E.C. inquiries that the company disclosed on Monday.
One of the company's strongest supporters has been David Fleischer, an analyst at Goldman, Sachs. But he told Mr. Lay on the call yesterday that Enron had to be more forthcoming with information. ''There is an appearance that you are hiding something,'' he said.
After the call, Mr. Fleischer expressed disappointment. ''They've engaged in a number of transactions that one wonders about, and that are hard to understand,'' he said in an interview. ''They have not been as forthcoming in explaining them'' as is needed, he said. But he said he was still recommending the stock. ''I don't think accountants and auditors would have allowed total shenanigans,'' he said. ''In the absence of total shenanigans going on at this company, there is tremendous value here.''
Mr. Lay cited the S.E.C. inquiries as a reason for not discussing details on the transactions involving the partnerships that were controlled by Mr. Fastow. But he emphasized that both he and the company's board ''continue to have the highest faith and confidence in Andy.''
Mr. Lay said that auditors from Arthur Andersen had carefully reviewed Enron's reporting in conjunction with another off-balance-sheet vehicle, called Marlin. That company owns one-third of Azurix, an Enron subsidiary that owns Wessex, a British water utility. The auditors ''have determined there is no write-down required,'' he said under questioning by Richard Grubman of Highfields Capital Management, a money management firm.
Mr. Grubman said that Marlin owed almost $1 billion on debt that was guaranteed by Enron but had no assets other than the Azurix stake. Noting that Enron had paid about $300 million to buy a third of Azurix from public shareholders and had since taken write-downs on its investment in Azurix, Mr. Grubman asked why the company was not setting up reserves to cover its exposure on that debt, which under a complicated arrangement could end up being satisfied through the issuance of Enron shares.
Mr. Lay said that no action was needed but declined to address details. Eventually he cut off Mr. Grubman. ''I know you're trying to drive the stock price down, and you've done a pretty good job of it,'' Mr. Lay said. ''But let's move on to the next question.''
Mr. Fastow said the company was having no problem issuing commercial paper and had $1.85 billion in such debt outstanding. He said it was backed by $3.35 billion in bank lines of credit, of which $1.75 billion will expire next May if it is not renewed.
Mr. Lay said he was sorry about ''the misunderstanding'' that resulted when his brief mention of the $1.2 billion reduction in shareholder equity in a conference call last week was not noticed by some analysts. That reduction would have been apparent if the company had released its balance sheet with the earnings report, but it did not. He said the company would consider releasing balance sheets with earnings reports in the future, but made no promises.
The large reduction in shareholder equity did not affect reported earnings, and so was not in the earnings release. But it raised concerns that some of the sophisticated financing techniques used by the company might be effectively keeping losses off the earnings statement. The S.E.C. is expected to look into whether the accounting for that transaction was correct.
After one questioner on the call said it would be easier to understand Enron if it released financial statements for the special purpose vehicles that were set up to enter into such transactions as Marlin, Mr. Lay said the company ''will look into providing'' such statements.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Options Report
Surge in Optimism Prompts Straddles In Enron and Cisco
By Kopin Tan
Dow Jones Newswires
10/24/2001
The Wall Street Journal
C14
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -- Bullish calls traded heavily early as investors, encouraged by the ability of stocks to shrug off anthrax scares, bought calls to replace stock holdings and to ride any rallies.
At one point, the ratio of equity calls traded to puts at the Chicago Board Options Exchange fell to 0.28, compared with 0.68 Friday and Monday's three-month closing low of 0.42.
The surge of optimism -- also evident in the CBOE market-volatility index, or VIX -- prompted traders to begin covering the downside, just as the widely watched stock indexes began to retreat. Contrarians believe the CBOE equity put/call ratio sends a bearish signal when it is below 0.40. By the session's end, the ratio was at 0.49.
Buyers drove robust call trading in Cisco Systems, a maker of Internet switching equipment, and the implied volatility also rose, noted a trader at Letco, the CBOE specialist for Cisco options. One investor bought thousands of January 20 calls, paying about $115 a contract for the right to buy 100 shares of the stock at $20 a share until mid-January. At 4 p.m. in Nasdaq Stock Market trading, Cisco was down 42 cents at $16.41. The January 20 calls fell 10 cents to 90 cents on CBOE volume of 27,048 contracts, while 6,861 contracts traded at the Pacific Exchange.
The implied volatility of Enron's near-month options remains high, even as the energy concern's executives sought to calm investors and address their concerns, following news that the Securities and Exchange Commission is looking at the Houston company.
The volatility spike makes Enron a viable candidate for investors looking to sell straddles -- selling calls and puts with the same strike price and expiration. In particular, Enron's at-the-money January 20 straddles offer rich premiums, said Lillian Seidman of the Seidman/Skupp options team at Miller Tabak & Co., of New York. With Enron down 86 cents at $19.79 in New York Stock Exchange composite trading, selling January 20 straddles would earn an investor about $750 a straddle -- a rich premium that could offset the cost of buying stock.
To be sure, selling straddles can be risky and the losses significant if the stock, which already had fallen about 38% in a week, makes a big move in either direction before the straddles expire. Investors typically buy straddles if they expect a big move in the underlying stock, while sellers pocket premium and hope the stock remains in a tight trading range.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Oct. 24, 2001, 12:05AM
Houston Chronicle
Lay tries to assure Enron investors
Company's credibility questioned
By LAURA GOLDBERG
Copyright 2001 Houston Chronicle
Enron had safeguards in place to protect shareholder interests while its chief financial officer ran two investment partnerships that did business with Enron, the company's chief executive officer said Tuesday.
The Houston-based energy trader has been caught in a storm of criticism over Chief Financial Officer Andrew Fastow's former role with two partnerships, LJM Cayman and LJM2 Co-Investment, that entered into complex financing and hedging arrangements with Enron.
Enron disclosed Monday that the Securities and Exchange Commission opened an "informal inquiry" into transactions between Enron and the two partnerships.
It declined to say if the SEC is looking into other transactions.
After the disclosure, Enron's stock fell almost 21 percent Monday. Tuesday it dropped another 86 cents to close at $19.79.
The news brought to the forefront ongoing complaints from some on Wall Street that some of Enron's financial mechanisms are difficult to understand and that Enron doesn't provide detailed enough financial data about its performance.
Tuesday morning, Enron Chairman and CEO Ken Lay held a conference call for investors and analysts, aimed at addressing their concerns.
It remains to be seen whether he succeeded, but based on the tenor of questions during the call, it's doubtful he achieved that result.
David Fleischer, a Goldman Sachs analyst, told Lay that the company's credibility was being severely questioned and called on him to do everything in his power to explain to investors that Enron's dealings are aboveboard.
"I, for one, find the disclosure is not complete enough for me to understand and explain all the intricacies of all those transactions," he said.
Lay told callers he was limited in speaking about the LJM partnerships because of the SEC inquiry.
He did say Enron was aware an "inherent conflict of interest" would result from its chief financial officer running investment partnerships doing business with Enron.
In response, Enron set up procedures, which Lay said were rigorously followed, to ensure shareholder interests wouldn't be compromised.
"There was a Chinese Wall between LJM and Enron," he said, adding that Enron wasn't obligated to do deals with the LJM entities and did so when it was in Enron's best interest.
Lay and Enron's board continue to have the "highest faith and confidence" in Fastow, he added.
Fastow resigned his roles with the LJM entities in June after criticism from Wall Street.
Enron ended its financial relationships with the partnerships.
It took a $35 million charge in the third quarter and reduced shareholders' equity by $1.2 billion as a result.
During the call Enron executives also addressed other issues.
They stressed that Enron expects to continue having sufficient liquidity to carry out normal operations and took questions about two financing vehicles, Whitewing and the Atlantic Water Trust, that it set up so it could invest in certain assets without issuing debt or Enron shares at the time of the investments.
If Enron should lose its current investment-grade quality debt rating, commitments made as part of those financing vehicles could trigger steps that would cause the value of Enron's current outstanding shares to become diluted.
Jeff Dietert, an analyst with Simmons & Co. International in Houston who follows Enron, was among those on the call. He said afterward he received some new information about Enron's lines of credit.
"I had hoped to get a little bit more out of the call," he said.
OBSERVER - Busy signal.
10/24/2001
Financial Times (U.K. edition)
(c) 2001 Financial Times Limited . All Rights Reserved
Busy signal
Enron should know plenty about bandwidth.
Through Enron Broadband Services, the giant energy company boasts about "developing an open and efficient market for bandwidth that provides liquidity, reliability, price transparency and guaranteed service levels".
But there were no guarantees about service levels yesterday, when Enron held a conference call to "address investor concerns" about its financial dealings.
Despite the bandwidth expertise, the call - the first time that Andrew Fastow, chief financial officer, has faced questions about the transactions from analysts - was available to just 300 lucky telephone diallers. A live webcast of the call was accessible on Enron's website, but without the chance to grill Enron brass.
Those investors and journalists who did make it through (some waited 20 minutes for their place at the party; others found their lines dropped mid-stream) heard volatile exchanges between analysts and company executives. An analyst chided for his part in lowering the company's share price was told by Ken Lay, Enron's chairman, that his question quota was up and it was time to move on.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Enron mulls ways to cover portfolio shortfalls-WSJ.
10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 24 (Reuters) - Enron Corp. Treasurer Ben Glisan said the company thinks it can repay about $3.3 billion in notes sold by investment vehicles it created without having to issue more stock, the Wall Street Journal reported in its online edition on Wednesday.
Enron may need to come up with funds to cover potential shortfalls in those investment vehicles, which could involve issuing additional shares, thereby diluting the position of current shareholders, the report said.
The report, which cites a Tuesday interview with Glisan, said the notes were sold to investors during recent years by several entities and are coming due during the next 20 months. The entities are known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I Inc, the report said.
According to the report, Glisan said assets from those entities could be sold to pay off some of the notes. Enron is selling other assets, the report said. According to the newspaper, proceeds from those sales could go toward repaying the notes, which are ultimately guaranteed by Enron.
Glisan, according to the report, said it looks like asset sales will raise at least $2.2 billion by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Glisan said, according to the report. "But if we are wrong, we will issue equity."
According to the report, Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock.
Enron held a conference call on Tuesday, seeking to assuage investor concerns after U.S. regulators said they were looking into transactions involving the company's chief financial officer and its stock shed more than $10 billion in value over the past week.
Enron said on the call it can tap $3.35 billion from a credit line, suggesting it has enough liquidity to operate its core trading and marketing business, which can experience wide swings in cash flow, depending on commodity prices and market hedges.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron May Issue More Stock to Cover Obligations
10/24/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created, Wednesday's Wall Street Journal reported.
Covering such shortfalls could involve issuing additional Enron (ENE) shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business; Financial Desk
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Bloomberg News
10/24/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company
Enron Corp., the biggest energy trader, has asked Citigroup Inc. to arrange a $750-million loan, ensuring access to credit if the beleaguered company is cut off from money markets, say people familiar with the matter.
Enron's shares and bonds plunged after the firm said the Securities and Exchange Commission was probing its finances.
The Houston-based business, whose stock has fallen 75% this year amid concerns about failed investments, depends on a $3-billion commercial paper, or short-term debt, program to finance day-to-day operations.
As a second-tier commercial paper borrower, any ratings drop may cut off Enron from the commercial paper market and raise costs of short-term debt.
Enron shares dropped 86 cents to close at $19.79 on the New York Stock Exchange.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Report on Business: The Wall Street Journal
What's News
United States
Wall Street Journal
10/24/2001
The Globe and Mail
Metro
B9
"All material Copyright (c) Bell Globemedia Publishing Inc. and its licensors. All rights reserved."
Enron Corp. might have to come up with several hundred million dollars over the next 18 months to cover potential shortfalls in investment vehicles it created, treasurer Ben Glisan said. The possible shortfall related to about $3.2-billion (U.S.) in notes that related entities sold to investors since 1999, he said. Proceeds from those notes were invested in various Enron assets. Mr. Glisan said those notes come due over the next 18 months and Enron still hopes to sell enough assets to fully repay the notes. However, making up any shortfall with funds raised by selling stock has become more expensive as Enron's share price has plunged. Over the past week, shares of the energy trading giant have fallen more than 40 per cent.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Abreast of the Market
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
By Robert O'Brien
Dow Jones Newswires
10/24/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -- Stocks ended only slightly lower as the recently resilient market largely withstood the effects of dismal corporate profit statements.
Shares of drug maker Pharmacia fell $4.37, or 13%, to $38.39, after the company issued third-quarter results that topped Wall Street's forecasts, but also issued 2002 profit projections that left some analysts disappointed.
In fact, several drug companies saw their stock prices fall as investors responded to their quarterly profit statements. Shares of Bristol-Myers Squibb, for example, gave up 1.68, or 2.8%, to 58.02, American Home Products lost 1.40, or 2.3%, to 58.90, and Schering-Plough eased 74 cents, or 1.9%, to 38.17.
Shares of several insurance and reinsurance providers also pulled back in reaction to profit statements, with Everest Re falling 6.40, or 8.4%, to 69.50, and St. Paul dropping 93 cents, or 1.9%, to 49.25.
Power utility Exelon, Chicago, was set back 3.42, or 7.7%, to 41.08, after its third-quarter results topped forecasts, but drew critical comments from several analysts.
Nevertheless, even with the grim earnings outlook, investors showed continued reluctance to throw in the towel.
"Institutional investors are busy trying to gauge the sentiment in the market," Richard Cripps, market strategist at Legg Mason, said. "Their fear is that the market makes a four or five percent upside run very quickly, which is eminently possible, and they can't afford to miss it."
Some seasonal factors also have played a role in supporting stock prices recently. For many mutual funds, for example, their fiscal year concludes at the end of October. Some are doing what is called window dressing -- buying stocks that their investment disciplines say should be in their portfolio -- while others need to boost their overall exposure to the equities market.
Whatever the reason, the market has been making some big moves when prices have risen, and modest moves when they have declined. The Dow Jones Industrial Average, which ran up 172.92 points Monday, declined 36.95 points yesterday, a loss of 0.39%, to 9340.08.
The Nasdaq Composite Index declined 3.64 points, or 0.21%, to 1704.44. Volume levels showed some improvement over Monday's rather sluggish pace.
Investors haven't completely rolled over. In a handful of the situations in which their ire has been raised, they have lashed those stocks repeatedly. Shares of SBC Communications, one of Monday's disappointments, got punished again, falling 2.62, or 6.3%, to 38.78, and fell back in range of a 52-week low of 38.20, set June 26.
Consumer lender Providian Financial got sent to a fresh 52-week low, off 41 cents, or 8.3%, to 4.55. Enron, which has fallen on concerns about conflicts of interest in dealings among the company, a power marketer, and partnerships that were set up and run by its chief financial officer, dropped an additional 86 cents, or 4.2%, to 19.79, hitting a 52-week low intraday.
There were some winning profit statements. Shares of CSX, for example, rose 2.45, or 7.5%, to 35.19, after the Richmond, Va., rail-freight concern reported third-quarter earnings that, while they fell short of year-ago performance, nevertheless managed to top Wall Street's forecasts.
Vitesse Semiconductor (Nasdaq), a Camarillo, Calif., maker of integrated circuits used in high-bandwidth communications networks, added 43 cents, or 4.5%, to 9.99, even though the company's losses for its fiscal fourth quarter proved sharper than expected.
NetIQ (Nasdaq) dropped 4.23, or 14%, to 26.17, even though the Santa Clara, Calif., developer of networking software posted fiscal first-quarter results late Monday that topped what analysts had been looking for.
Chartered Semiconductor (Nasdaq) advanced 40 cents, or 2.1%, to 19.10. The Singapore chip foundry reported third-quarter results that showed a loss for the period, but nevertheless proved to be a little more encouraging than analysts had projected.
Shares of several cable-television operators moved higher. Charter Communications added 59 cents, or 4.5%, to 13.62, Comcast gained 40 cents, or 1.1%, to 36.82, and Cox Communications rose 44 cents, or 1.1%, to 40.15. Thomas Weisel Partners said that cable operators should benefit from SBC Communications' decision, revealed Monday with its quarterly results, to scale back the growth of its digital subscriber line service offering.
EarthLink (Nasdaq) slid 2.51, or 14%, to 14.85. The Atlanta Internet service provider issued stronger-than-expected third-quarter results, but also signaled that its customer growth had slowed.
AT&T Wireless increased 1.26, or 9.7%, to 14.20. The Redmond, Wash., provider of wireless communications services reported third-quarter results that topped what analysts had been looking for.
Several steelmakers moved higher following a ruling late Monday by the U.S. Trade Commission, which said it determined that domestic steelmakers have been significantly harmed by cheap imports; the ruling could lead to the erection of barriers limiting steel imports. USX-U.S. Steel Group gained 28 cents, or 1.9%, to 15.02, Nucor rose 1.05, or 2.5%, to 42.87, and AK Steel improved 41 cents, or 4.6%, to 9.31.
McKesson advanced 1.56, or 4.2%, to 38.95. The San Francisco drug distributor and health-care information technology provider posted stronger-than-expected fiscal second-quarter results.
Watson Pharmaceuticals fell 3.05, or 6%, to 48.11. UBS Warburg reduced its rating on the Corona, Calif., drug maker, and lowered its earnings projections for the company.
Furniture Brands dropped 2.04, or 8.9%, to 20.96. UBS Warburg cut its rating on the St. Louis furniture manufacturer, saying it believes the company has lost market share to rival manufacturers.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
International News
U.S. Energy Giant Weighs a Move To Pull Out of India
Associated Press
10/24/2001
The Asian Wall Street Journal
9
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW DELHI -- Following Enron Corp. U.S. energy company AES Corp. has turned to the Indian prime minister for help in settling its grievances with a state government.
In a letter to Atal Bihari Vajpayee, AES Corp.'s President Dennis W. Bakke said his company's determination to continue in India is being tested by the government of eastern Orissa state.
A copy of the letter, dated Oct. 1, was made available to the Associated Press.
AES operates two power plants in Orissa, holds 49% of the Orissa Power Generation Corp. and manages the main power distribution company in the state.
AES and Enron are the only major American power companies to make big investments in India since the government allowed foreign investment in the sector in the early 1990s.
In his letter, Mr. Bakke drew Mr. Vajpayee's attention to the "expropriation, repeated contract violations, intimidation . . . and direct interference with day-to-day management" by the state government and its agencies.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
UK: LNG delays could spawn shipping crisis - analysts.
By Pete Harrison
10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.
LONDON, Oct 24 (Reuters) - The transport chain supporting the global LNG industry will be finely poised in coming years between profitability and a crisis of oversupply if projects miss their deadlines, shipping analysts warn.
More LNG tankers than ever before are being constructed in the shipyards of the Far East, many of them ordered speculatively against anticipated demand, which might emerge later than scheduled.
"The issue is timing," Jarle Sjo, shipping equity analyst at Oslo-based investment bank First Securities told Reuters.
"Historically, LNG projects have been delayed - you can estimate at about six months - and if that happens it will probably get ugly in the short term," he added.
The world fleet of LNG tankers currently numbers 123, but will have swollen by about 37 percent by the end of 2004, according to shipping database Fairplay.
Gas industry analysts expect some LNG projects to be delayed as a result of the economic downturn, excess capacity at existing plants in Asia and a sharp fall in U.S. natural gas prices this year.
Svein Erik Amundsen, Managing Director of Norwegian shipping group Bergesen, said that a sustained economic downturn could have "consequences."
"I wouldn't be surprised by project delays," he told Reuters. "This could result in some tonnage coming out of the yards without immediate employment."
"I think you can say we're still optimistic, but more cautiously optimistic than before," he added. Bergesen has three new LNG ships on order, two of which have already been contracted out to Belgian gas distributor Distrigas.
STOP AND THINK
The world's largest and only pure LNG shipping player, Golar LNG, historically bullish in its outlook, has also been forced to stop and consider the problem.
Golar has six ships locked into long-term contracts, but four more are under construction at South Korea's Daewoo and Hyundai yards and do not yet have firm future employment.
"There is a reasonable balance between the production coming onstream and the amount of ships ordered," Golar Executive VP Sveinung Stohle told Reuters, "The only risk is things might be delayed."
Stohle said that contracting out the new ships remained an option, but it was also developing an LNG trading arm, which might have a use for some of them.
Golar's closest competitor in terms of size, Exmar, is taking a more traditional approach. It has six ships on order and said it would leave as little as possible to chance.
"We've chartered out all of them except the Samsung ship, which is under offer for the (Qatari) RasGas tender," Managing Director Nicolas Saverys told Reuters. Four are booked out to El Paso and one to Enron.
He said that until all the upcoming projects had their Supply Production Agreements in place, it would be too risky for companies to place fresh ship orders.
"It's a good time to wait," said Saverys.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
INDIA PRESS:British Gas Seeks ONGC Deal For Field Control
10/24/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW DELHI -(Dow Jones)- British Gas has offered India's Oil & Natural Gas Corp. (P.ONG) equity in its exploration acreage in Brazil and a cash settlement in lieu of operatorship of the Tapti Panna and Mukta oil fields, the Economic Times reported Wednesday.
ONGC and Reliance Industries Ltd. (P.REL) are claiming operatorship of the Tapti Panna and Mukta oil fields following Enron Oil & Gas India Ltd.'s 30% stake sale to BG, according to the report.
State-owned ONGC holds a 40% stake in the Panna-Mukta and Tapti fields and Reliance owns 30%.
The Enron Oil & Gas stake sale will fall through if BG isn't given the operatorship of the oil fields, Nigel Shaw, vice president of BG India said in the report.
Shaw said the equity partners are in discussions on the issue of operatorship, the report said.
British Gas is a unit of BG Group PLC (BRG). Enron Oil & Gas is a unit of Enron Corp. (ENE).
Newspaper Web site: http://www.economictimes.com
-By Dow Jones Newswires; 91-11-461-9426; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
BG Offers ONGC Brazilian Assets to Get Managing Rights in India
2001-10-24 01:12 (New York)
Mumbai, Oct. 24 (Bloomberg) -- BG Group Plc has offered Oil &
Natural Gas Corp. a stake in exploration projects in Brazil if
India's biggest oil producer allows BG to run the oil fields it
bought from Enron Corp. in India, the Economic Times reported,
without citing any officials.
BG's purchase of Enron's 30 percent stake in the three oil
and gas areas in India is contingent on winning the right to
manage the developments. Reliance and ONGC, which together own 70
percent of the exploration venture, have both claimed rights to
run the oil and gas fields.
BG has asked ONGC to waive its right to decide the operator
after Enron quits in return for a stake in its oil and gas sites
in Brazil, the paper said. It didn't give details on the Brazilian
interests BG may offer ONGC. BG has set Oct. 31 as a deadline to
resolve the ownership dispute, the paper said.
The purchase from Enron would give BG a 30 percent stake in
the Tapti and Panna-Mukta oil and gas fields, as well as 63
percent of an untapped deposit on the west coast of India. The
assets hold more than 170 million barrels of oil and gas.
Before agreeing with BG, Enron rejected bids from its Indian
partners, ONGC and Reliance, as well as from the nation's biggest
refiner, Indian Oil Corp.
House stimulus bill would give billions to huge companies; Senate Democrats present alternative
By CURT ANDERSON
AP Tax Writer
10/23/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
WASHINGTON (AP) - General Motors, IBM and Kmart are among corporations that would receive billions of dollars in tax refunds under a $100 billion House Republican economic stimulus package. Democrats say it is far too generous to companies and does too little for individuals.
Seven companies would get a total of $3.3 billion in refunds of alternative minimum taxes they paid as far back as 1986. The tax, which the House legislation also would repeal outright, is intended to ensure a basic minimum income tax is paid by companies and individuals that claim numerous deductions and credits.
IBM would get a $1.4 billion refund, according to the nonpartisan Congressional Research Service, while GM would get $832 million, Kmart $102 million and General Electric $671 million. Others specified for big refunds include energy giant Enron, at $254 million; U.S. Steel, $39 million; and grocery chain Kroger, $9 million.
In addition, the study found that Ford Motor Co. would get a refund that could total $2.3 billion, while Chevron's could reach $314 million.
Counting repeal of the tax, corporations would get more than $25 billion in tax relief from these minimum tax provisions in 2002 alone. In addition, the bill would make permanent a temporary tax break for financial services firms doing a lot of overseas business, providing them $21 billion in tax relief over 10 years.
The generous corporate tax breaks are among the most contentious items in the House GOP measure, scheduled for a floor vote Wednesday. Democrats say the measure is certain to change once it reaches the Senate; the Bush administration also has signaled that $100 billion is too costly.
"It's clear the House bill cannot pass the Senate as it is," said Sen. John Breaux, D-La.
For individuals, the House legislation includes a new round of tax rebate checks for workers who didn't get them this summer and a cut in the current 27 percent income tax rate to 25 percent in 2002, four years earlier than under the just-enacted tax cut. The measure also reduces capital gains rates from 20 percent to 18 percent for most taxpayers, enhances business equipment write-offs and allows companies to deduct current losses against taxes paid five years earlier.
The primary sponsor, Ways and Means Committee Chairman Bill Thomas, said in a newspaper opinion piece published Tuesday in USA Today that the legislation "is a shot of adrenaline" that will help restart the economy while not triggering inflation.
"Businesses generate jobs, and jobs are the core of a strong economy," wrote Thomas, R-Calif.
While bipartisan support backs some of the House items, Senate Democrats have been pushing for expanded unemployment benefits and help for workers who lose health insurance. Sen. Max Baucus, chairman of the Senate Finance Committee, presented a $70 billion proposal Tuesday that would extend unemployment benefits by 13 weeks, provide a 50 percent federal match for COBRA health insurance policies and allow more workers to qualify for Medicaid.
The legislation also includes rebate checks and some business items similar to the House bill but not the capital gains reduction or the alternative minimum tax relief. Tax cuts in the Baucus measure would total $35 billion in 2002, far below the House GOP level.
"This proposal appropriately responds to the sign of the times, helping this nation get back to work and recover quickly," said Baucus, D-Mont.
Other Democrats were working on spending programs. Senate Appropriations Committee Chairman Robert Byrd, D-W.Va., said he was putting together a $20 billion package that included hiring extra customs and border agents and food inspectors, augmented security at nuclear plants and purchase of more vaccines.
Sen. Charles Grassley, R-Iowa, said President Bush does not want the stimulus bill laden with additional spending.
"Everything in this package needs to be stimulative," Grassley said. "There needs to be more done on the investment side."
---
On the Net: House members: http://www.house.gov/house/MemberWWW.html
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Wechsler Harwood Halebian & Feffer LLP Announces Class Periods
10/23/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)
DQE, Inc. (DQE); Enron Corp. (ENE)
NEW YORK, Oct. 23 /PRNewswire/ -- Notice to persons who transacted in the following securities and respective class periods: CORPORATION CLASS PERIOD DUE DATE
DQE, Inc. 12/06/00-04/30/01 12/05/01
(NYSE: DQE)
Enron Corp. 01/18/00-10/17/01 12/21/01
(NYSE: ENE)
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") (http://www.whhf.com) has been retained to investigate claims or filed class action complaints involving the securities of the above companies on behalf of investors.
Wechsler Harwood has extensive experience representing shareholders in class actions and has served as lead counsel on behalf of shareholders in many such actions. The reputation and expertise of this firm in shareholder and other class actions has repeatedly been recognized by the courts.
If you wish to discuss these actions, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, by calling toll free 877-935-7400 or by contacting: Patricia Guiteau
Wechsler Harwood Shareholder Relations Department; DQE, Inc.:
[email protected] or [email protected].
Ramon Pinon, IV
Wechsler Harwood Shareholder Relations Department; Enron Corp.:
[email protected] or [email protected].
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X72542557
/CONTACT: For DQE - Patricia Guiteau, [email protected], or For Enron - Ramon Pinon, IV, [email protected], both of Wechsler Harwood Shareholder Relations Department, [email protected]/ 18:37 EDT
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business
Stock Analysis/Call In
Bruce Francis, Kathleen Hays
10/23/2001
CNNfn: Markets Impact
(c) Copyright Federal Document Clearing House. All Rights Reserved.
KATHLEEN HAYS, CNNfn ANCHOR, MARKETS IMPACT: Both the Dow and the Nasdaq lost ground today after another big round of earnings news.
FRANCIS: Lets go to Keith in Alaska with a quick question for Don and Don let`s give us a zippy answer to.
LUSKIN: All right.
CALLER: Hey Don I like to know as far as Enron (URL: http://.www.enron.com/) is concerned, how representative of the energy sector is this because I`ve been watching as a small investor that`s kind of brand new, watching it just kind of plummet. So and I`m only investing a little bit every month in it but you think that`s pretty wise idea just kind of keep on doing small investments?
LUSKIN: Well as a general investing strategy yes but Enron is a special case where we have a company that`s in bad trouble. We had a CEO who basically left without explanation a couple of months ago, then yesterday the CFO has been accused of some pretty strange looking self dealing issues. We don`t know how that`s going to resolve but this is a company under a cloud so you might want to hold off on your buying program until that cloud lifts a little bit.
FRANCIS: All right Don, thank you very much; we appreciate it. Don Luskin.
LUSKIN: All right.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
| ||
arnold-j/deleted_items/469.
|
subject: Natural update
content: Just a followup to our phone call earlier this morning. Have begun to see short-term intraday topping patterns. Natural has reached its mid-range of price objectives. See no rationale for holding significant length here. Winter months seem especially high and most vulnerable to correction. The first hour's negative close produced a sell signal against today's high. Still too early to ascertain if this is the end of entire up move. Have targets into early next week, but mkt. has reached where it needed to.
| ||
arnold-j/deleted_items/47.
|
subject: FOLIOfn Monthly Statement
content: Dear FOLIOfn Member,
You have a new monthly statement in your filing cabinet.
Please review it as soon as possible to make sure it is
accurate. Also, please print out a copy for your records
because monthly statements are deleted from your filing
cabinet after six months.
To view your monthly statement, please follow these steps:
1. Visit our Web site at http://www.foliofn.com
and log in with your user name and password.
2. View your filing cabinet by clicking on the filing cabinet
icon at the top of the My Accounts page. Or, you can select
"View Filing Cabinet" in the drop-down box for your account.
3. Once you're in your filing cabinet, please click on your
monthly statement at the bottom of the page.
If you have any questions, please reply to this email or call
us toll-free at 1-888-973-7890, 24 hours a day, seven days a
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Thank you for using FOLIOfn.
Sincerely,
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Member NASD and SIPC
| ||
arnold-j/deleted_items/470.
|
subject: RE: ng: z1,f2.g2,h2
content: JA:
I concur.
Producer shutins are BS- they have not felt any pain
Economic recovery is a no show
Im trying to understand next summer a little better
still owe u my notes on FP&L and AEP --will do when i Get back on Thursday
u still long GD? great job this month!
-----Original Message-----
From: Arnold, John
Sent: Mon 10/22/2001 11:25 PM
To: Fraser, Jennifer
Cc:
Subject: RE: ng: z1,f2.g2,h2
bearish still but a matter of timing. current rally a function of reshaping the curve with incremental stg still available to ecourage economic withdraws come december. think recent increase in bullish fundamental situation is more a result of price (1.80 in bid week) than anything else. Think that with this bidweek being, as we stand now, above resid and above the coal stack, fundamentals worsen considerably to the point where price must go down. Still very bearish first half '02.
-----Original Message-----
From: Fraser, Jennifer
Sent: Mon 10/22/2001 12:18 PM
To: Arnold, John
Cc:
Subject: ng: z1,f2.g2,h2
any thoughts?
| ||
arnold-j/deleted_items/471.
|
subject: Enron Mentions
content: SEC Seeks Information on Enron Dealings With Partnerships Recently Run by F=
astow
The Wall Street Journal, 10/23/01
Where Did the Value Go at Enron?
New York Times, 10/23/01
FRONT PAGE - FIRST SECTION: SEC probes Enron over financial dealings=20
Financial Times; Oct 23, 2001
COMPANIES & FINANCE THE AMERICAS: Group full of surprises after failing to =
open up=20
Financial Times; Oct 23, 2001
Enron Discloses SEC Inquiry=20
The Washington Post, Oct 23, 2001
Enron Suffers After Unclear Disclosure, New York Times Says
Bloomberg, 10/23/01
SEC asks Enron for investing data
Houston Chronicle, 10/23/01
Minnesota Mining and GM Climb In a Rally That Builds Late in Day
The Wall Street Journal, 10/23/01
WORLD STOCK MARKETS: Wall St bargain hunters counter earnings gloom AMERICA=
S=20
Financial Times; Oct 23, 2001
Milberg Weiss Announces Class Action Suit Against Enron Corp.
Business Wire, 10/22/01
Enron To Host Conference Call Tues 9:30 am EDT
Dow Jones News Service, 10/22/01
Janus Had Biggest Enron Stake at End of 2nd-Quarter (Update1)
Bloomberg, 10/22/01
Enron Says SEC Asks About Related-Party Transactions (Update9)
Bloomberg, 10/22/01
Trusts Keeping Enron Off Balance
TheStreet.com, 10/22/01
Why Enron's Writedown Unnerves Some Investors
TheStreet.com, 10/22/01
SEC Seeks Information on Enron Dealings With Partnerships Recently Run by F=
astow
By Rebecca Smith and John R. Emshwiller
Staff Reporters of The Wall Street Journal
10/23/2001
The Wall Street Journal
A3
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Enron Corp. said it has been contacted by the Securities and Exchange Commi=
ssion seeking information on the energy giant's controversial dealings with=
partnerships that were set up and run until recently by its chief financia=
l officer, Andrew S. Fastow.=20
Following Enron's announcement yesterday morning of the SEC inquiry, the co=
mpany's stock took another big slide, falling more than 20% in New York Sto=
ck Exchange trading. As of 4 p.m., Enron shares were trading at $20.65, off=
$5.40, knocking about $4 billion off Enron's market capitalization. Volume=
topped the Big Board's most-active list at about 36 million shares. A week=
ago, Enron stock was trading at about $33 a share. Subsequently, the compa=
ny announced a $1.01 billion third-quarter write-off that produced a $618 m=
illion loss.
Analysts also voiced concerns yesterday about possible other bad news lurki=
ng amid Enron's vast and extremely complex operations. The company has deal=
ings with a number of related entities. Under certain circumstances, if Enr=
on's credit rating and stock price fall far enough, the company would be ob=
ligated to issue tens of millions of additional shares to these entities, d=
iluting the holdings of current shareholders.=20
Enron has previously acknowledged the provisions but said its business is s=
trong and it feels confident that there will be no defaults.=20
In a statement, Enron Chairman and Chief Executive Kenneth Lay said the com=
pany "will cooperate fully" with the SEC inquiry and "look(s) forward to th=
e opportunity to put any concern about these transactions to rest." Enron h=
as consistently said that it believes its dealings with the Fastow-related =
partnerships were proper and properly disclosed. The company has said it pu=
t billions of dollars of assets and stock into partnership-related transact=
ions as a way to hedge against fluctuating market conditions.=20
The SEC inquiry came from the agency's Fort Worth, Texas, regional office. =
According to a person familiar with the matter, this would indicate that th=
e inquiry comes from the SEC's enforcement arm, as opposed to its corporate=
-finance section. The participation of the enforcement branch would indicat=
e that the agency is looking into whether there were possible violations of=
securities law. However, enforcement-branch inquiries often don't produce =
any allegations of wrongdoing. It also appears that the SEC hasn't yet take=
n the step of launching a formal investigation, which would be a sign that =
the agency believes securities laws might have been violated. The SEC decli=
ned to comment.=20
Certainly, there have been questions and concerns about those partnership t=
ransactions, which contributed to a $1.2 billion reduction in shareholder e=
quity last week as part of Enron's efforts to unwind the deals. Mr. Fastow,=
who has declined repeated interview requests, resigned from the partnershi=
ps, known as LJM Cayman LP and LJM2 Co-Investment LP, in late July in the f=
ace of rising conflict-of-interest concerns by Wall Street analysts and maj=
or company investors.=20
Since then, internal partnership documents have shown that Mr. Fastow and p=
erhaps a handful of Enron associates made millions of dollars last year in =
fees and capital increases as general partner of the LJM2, the larger of th=
e two partnerships.=20
Mr. Fastow's partnership arrangement caused some unhappiness inside Enron, =
according to people familiar with the matter. For instance, these people sa=
y, sometime after the creation of the partnerships in 1999, Enron Treasurer=
Jeffrey McMahon went to company president Jeffrey Skilling and complained =
about potential conflicts of interest posed by Mr. Fastow's activities. Mr.=
Skilling didn't share Mr. McMahon's concern, these people say, and Mr. McM=
ahon requested and received reassignment to another post.=20
Mr. Skilling resigned as Enron president and chief executive in mid-August,=
citing personal reasons and the fall in Enron's stock price, which peaked =
at about $90 a share last year. Mr. McMahon and Mr. Skilling haven't respon=
ded to repeated interview requests.=20
Investors are also concerned about potential problems arising in Enron's de=
alings with other related entities. In some cases, Enron could be required =
to issue large amounts of stock to noteholders in some of the entities if c=
ertain so-called double trigger provisions occur.=20
For example, last July Enron helped create the Marlin Water Trust II, which=
sold $915 million in notes that are due July 15, 2003. However, Enron can =
be considered in default, in advance of that date, if its stock price falls=
below $34.13 for three trading days and its senior debt is downgraded to b=
elow investment grade by either Moody's Investors Service or Standard & Poo=
r's.=20
Currently, Enron debt is still investment-grade at both ratings agencies an=
d would have to be lowered by several notches to fall into a noninvestment =
grade category. Last week, Moody's put Enron on review for a possible downg=
rade. However, observers believe that even if Moody's lowers Enron's rating=
, the company will still be investment-grade.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
October 23, 2001
Where Did the Value Go at Enron?
By FLOYD NORRIS
New York Times
What really went on in some of the most opaque transactions with insiders e=
ver seen?
Wall Street has been puzzling over that since Enron (news/quote </redirect/=
marketwatch/redirect.ctx?MW=3Dhttp://custom.marketwatch.com/custom/nyt-com/=
html-companyprofile.asp&symb=3DENE>) released its quarterly earnings a week=
ago. Yesterday shares in Enron plunged $5.40, to $20.65, after the company=
said that the Securities and Exchange Commission was looking into the tran=
sactions.
The reaction was in some ways puzzling. Given the questions that have been =
raised since the earnings announcement - some of them prominently featured =
in The Wall Street Journal - it was likely that the S.E.C. would begin a pr=
eliminary inquiry.
Whether it will go farther than that is not clear, but if nothing else the =
slide in Enron shares over the last week shows the hazards that can confron=
t a company that allows word of a major reduction in its balance sheet valu=
e to dribble out. Enron's shares rose 67 cents, to $33.84, last Tuesday, as=
investors first reacted to the earnings announcement. But since then they =
have fallen $13.19, or 39 percent.
The $1.2 billion reduction in shareholders' equity was not mentioned in a n=
ews release Enron issued on its quarterly earnings last Tuesday. It was bri=
efly mentioned in a conference call with analysts, but many of the listener=
s seem to have not noticed that, wrongly thinking Kenneth L. Lay, Enron's c=
hairman and chief executive, was referring to a $1 billion write-off that w=
as disclosed in the earnings release.
When questions were asked in the following days, the explanations were less=
than thorough. Enron explained that the reduction in shareholders' equity =
was related to the termination of "structured finance vehicles" involving p=
artnerships that had been controlled by the company's chief financial offic=
er.
"Both the debt and the equity people are looking for more clarity about how=
the company goes about its business," said Ralph Pellecchia, a credit anal=
yst at Fitch Investors Service. He added that the issue of the company's "c=
redibility related to this transaction really seems to have a life of its o=
wn."
Enron declined yesterday to allow any officials to be interviewed about its=
financial reports. But last night it said Mr. Lay would hold another confe=
rence call with investors at 9:30 a.m. today.=20
The company's earlier disclosures regarding the partnerships baffled many a=
nalysts. They referred to such things as "share settled costless collar arr=
angements" and "derivative instruments which eliminated the contingent natu=
re of existing restricted forward contracts." The disclosures said the comp=
any entered into the transactions "to hedge certain merchant investments an=
d other assets."
It appears that Enron was able to report profits from them, even though the=
underlying assets included investments that declined in value. The Wall St=
reet Journal, citing reports the partnerships made to institutional investo=
rs, has reported the partnerships did well enough to make large cash distri=
butions to their investors. Enron officials in recent days have refused to =
discuss the arrangements in any detail.
One of the questions that the S.E.C. may look into is whether the terminati=
on of those transactions should have been treated as a balance sheet item, =
or whether it should have been taken as a loss that affected reported earni=
ngs. An S.E.C. spokesman declined to comment.
Under accounting rules, a company's transactions in its own shares cannot p=
roduce profits or losses, whatever the effect on cash flow. So a company th=
at sells its shares for $10 each, and buys them back at $50, or at $1, will=
report no earnings effect. Enron said that the reduction to shareholders e=
quity, and a related reduction in notes receivable, "is the result of Enron=
's termination of previously recorded contractual obligations to deliver En=
ron shares in future periods."
Stephen Moore, an analyst with Moody's Investors Service who has put Enron'=
s debt on review for a possible downgrade, said that while some of the deta=
ils were not clear, "Essentially, Enron's promise was that a certain amount=
of Enron's shares would be worth $1 billion. The shares plummeted, and the=
y were not" worth that much.
Enron emphasizes its own version of earnings, which leaves out some expense=
s, and directs attention away from its balance sheet, which is disclosed on=
ly in S.E.C. filings, not in the earnings news release. The reduction in sh=
areholders' equity would be shown only on the third-quarter balance sheet, =
which has yet to be released.
Earlier this year, Jeffrey Skilling, then Enron's chief executive, reacted =
strongly when a questioner on a conference call challenged the failure to p=
rovide balance sheet numbers when earnings were released. He called the que=
stioner a common vulgarity that surprised many listeners. Mr. Skilling late=
r resigned for what he said were personal reasons and Mr. Lay, the chairman=
and former chief executive, took back the latter title.
While Enron was riding high, its often difficult-to-understand reports were=
generally seen as not being a problem. The company appeared to be the domi=
nant force in the business of energy trading, and to be able to produce phe=
nomenal profits. When Mr. Lay was reported as having played an important ro=
le in formulating the Bush administration's energy policies, the aura was o=
nly enhanced. In January, the shares traded for $84.
But now, with some of the company's ventures clearly having run into proble=
ms, it appears that investors are growing less willing to accept the compan=
y's reports. That the partnership transactions were disclosed at all was be=
cause of the involvement of the chief financial officer, and some have wond=
ered if there might have been similar deals with others.
Mr. Lay has promised to make the company's financial reports easier to unde=
rstand, and last week's report was at first praised by some analysts for do=
ing just that.
In a news release yesterday, Mr. Lay said the company welcomed the S.E.C.'s=
request for information. "We will cooperate fully with the S.E.C. and look=
forward to the opportunity to put any concern about these transactions to =
rest," he said.
FRONT PAGE - FIRST SECTION: SEC probes Enron over financial dealings=20
Financial Times; Oct 23, 2001
By JULIE EARLE, JOHN LABATE and SHEILA MCNULTY
Enron, the US energy giant, disclosed yesterday that the Securities and Exc=
hange Commission had asked it to provide financial information at the start=
of an informal inquiry.=20
The announcement follows a rapid sell-off in the stock in reaction to Enron=
's surprise revelation last week of a Dollars 1.2bn charge to equity to eli=
minate the dilutive effects of closing one of its controversial financing v=
ehicles.=20
In revealing the SEC call for more detailed information "regarding certain =
related party transactions", Enron hopes to counter growing criticism that =
it should be more transparent. "We welcome this request," said Kenneth Lay,=
Enron chairman and chief executive officer. "We will co-operate fully with=
the SEC and look forward to the opportunity to put any concern about these=
transactions to rest."=20
The SEC probe into Enron's financial dealings is an informal one at this st=
age, according to the company, and the request for documents is voluntary. =
However, SEC probes often begin lightly as investigators gather information=
on an issue.=20
Such a probe could turn into a formal investigation at any time. In that ca=
se, regulators would be armed with subpoena powers and could demand certain=
documents be handed over. The SEC would not confirm or deny the existence =
of the Enron probe.=20
Mr Lay did not say which transactions the SEC was reviewing, although analy=
sts believe they relate to Andrew Fastow, Enron chief financial officer, wh=
o has been reported to have run a limited partnership that bought assets va=
lued at hundreds of millions of dollars from Enron.=20
Analysts say the transactions, while controversial because of Mr Fastow's l=
inks to the company, have been disclosed. What concerns them, however, is h=
ow Enron valued the assets involved. www.ft.com/energy=20
Copyright: The Financial Times Limited
COMPANIES & FINANCE THE AMERICAS: Group full of surprises after failing to =
open up=20
Financial Times; Oct 23, 2001
By SHEILA MCNULTY
Ronald Barone joked he would have to get plenty of rest ahead of Enron's re=
sults last week, noting the US energy company's reputation for producing wh=
at some analysts say is the most complicated of earnings reports.=20
The UBS Warburg analyst was, nevertheless, as ill-prepared as his peers for=
the announcement of a Dollars 1.2bn charge to equity to eliminate the dilu=
tive effects of closing one of its controversial financing vehicles.=20
The news overshadowed Enron's on-target 26 per cent increase in third-quart=
er earnings per share, sending the stock plunging.=20
The Securities and Exchange Commission's subsequent request for more inform=
ation about Enron's financial activities has reinforced analyst perceptions=
that the company should have been more transparent in its reporting.=20
Curt Launer, of Credit Suisse First Boston, says expectations for more disc=
losure had built up over the past two months. Kenneth Lay, Enron chairman, =
had promised to be more forthcoming when he resumed the duties of chief exe=
cutive following the resignation of Jeff Skilling in August.=20
While Mr Lay did improve Enron's disclosure by creating headings for new bu=
siness segments and providing more detail within each of them, the Dollars =
1.2bn charge still caught the market off guard.=20
"It came as a surprise to us," said Stephen Moore, of Moody's Investors Ser=
vice. "We should have been informed that it was there."=20
Mr Barone found it disturbing that Enron disclosed the charge in "a fleetin=
g comment" during its conference call with analysts and did not mention it =
in its nine-page news release.=20
"Despite progress in other areas, there appears to be much more work ahead =
before the lingering credibility issues that have vexed this company in the=
past are fully resolved," he said.=20
Enron contends that "we did disclose it in the conference call, and it was =
one of the first points raised in the Q and A session (on the conference ca=
ll)".=20
Mr Lay has pledged to co-operate with the SEC's request, which appears to b=
e part of an informal inquiry rather than an official investigation. In the=
meantime, he adds, Enron will focus on its core businesses.=20
That is something analysts say Enron has strayed too far away from. Ray Nil=
es of Salomon Smith Barney says the company's core franchise - its wholesal=
e business - is doing well. Most of Enron's problems have arisen from stepp=
ing out of this area.=20
"They need to come clean on the financial effects of all of their off-balan=
ce sheet financing," Mr Niles says. "Investors want to see clear, easy-to-u=
nderstand financial information." Moody's has placed Enron's Dollars 13bn i=
n debt securities on review for possible downgrade and Mr Moore believes th=
ere is potential for more write-offs.=20
Enron is embroiled in a legal dispute with an Indian state electricity boar=
d over a power project and is one of several energy traders facing question=
s in California over accusations of a manipulation of power prices - a char=
ge it denies.=20
Analysts say its UK businesses are not seeing big multiples, and Enron says=
it only expects to take Dollars 200m in "goodwill" versus Dollars 5.7bn on=
its books.=20
Copyright: The Financial Times Limited
Enron Discloses SEC Inquiry=20
Information Request Involves Ties to Money-Losing Partnerships=20
Washington Post
By Peter Behr
Washington Post Staff Writer
Tuesday, October 23, 2001; Page E03=20
Enron Corp. shares sank more than 20 percent yesterday after the Houston en=
ergy company disclosed a Securities and Exchange Commission request for inf=
ormation about Enron's ties to outside investment partnerships set up by th=
e company's chief financial officer.
The SEC would not comment on its action, which Enron spokesman Mark Palmer =
called an "informal inquiry," not an investigation. "We welcome this reques=
t," said Kenneth L. Lay, chairman and chief executive of the Houston-based =
company.
But the announcement jarred investors' confidence in the giant energy-tradi=
ng company, already hurt by the unexpected resignation of chief executive J=
effrey K. Skilling in August, and heavy losses from investments in broadban=
d Internet and other technology ventures.
"A lot of people threw in the towel today," said Anatol Feygin, an analyst =
with J.P. Morgan in New York.
The SEC request was made privately last Wednesday, the day after Enron repo=
rted a $1 billion write-off of investment losses and restructuring charges =
from unsuccessful technology ventures and other operations. The write-offs =
left Enron with a $618 million loss in the third quarter (84 cents a share)=
.
The Wall Street Journal reported last week that $35 million of the write-of=
f was tied to losses at limited partnerships established by Enron's chief f=
inancial officer, Andrew Fastow, and run by him until July.
Enron told investment analysts last week that it had repurchased 55 million=
shares of its stock held by the partnerships that Fastow had directed, red=
ucing shareholder equity by $1.2 billion.
According to the Wall Street Journal, Fastow set up several investment part=
nerships with the approval of Enron's board. The partnerships engaged in bi=
llions of dollars in complex financial transactions involving Enron and mad=
e major investments in power plants and other assets alongside Enron.
An Enron shareholder has filed suit in Texas state court alleging that Enro=
n's board violated its duty to the company by permitting the chief financia=
l officer to engage in the outside transactions that allegedly earned milli=
ons of dollars in fees for himself and other investors in the partnerships.=
What Enron received from the relationships is not clear.
Feygin said that the company had informed analysts about the limited partne=
rships, which offered Enron a way to take positions in strategic but uncert=
ain technology ventures without detailing the outcomes in its public financ=
ial statements.=20
"In hindsight, that was an error in judgment. I don't think it was an error=
in principle," the analyst said.
Enron could have revealed the SEC inquiry last week but did not disclose it=
until yesterday, and for many investors, that was the last straw, Feygin s=
aid.
The stock closed yesterday at $20.65, down $5.40, as 36 million shares chan=
ged hands.
Staff researcher Richard Drezen contributed to this report.
Enron Suffers After Unclear Disclosure, New York Times Says
2001-10-23 06:31 (New York)
Houston, Oct. 23 (Bloomberg) -- The U.S. Securities and
Exchange Commission's decision to look into some Enron Corp.
transactions and the company's recent decline in value show what
can happen when a company lets a major reduction in its balance
sheet dribble out, Floyd Norris of the New York Times reported in
his column, citing analysts.
Investors are concerned as to how Enron reduced shareholders'
equity by $1.2 billion and why this was not mentioned in a news
release the company issued with its quarterly earnings last
Tuesday, the paper said.
Enron Corp.'s shares fell 21 percent yesterday after the
Houston-based company said the Securities and Exchange Commission
requested information on partnerships run by Chief Financial
Officer Andrew Fastow and other executives. Enron created
partnerships and other affiliated companies to buy and sell assets
such as power plants to lower the debt on its books.
``Both the debt and the equity people are looking for more
clarity about how the company goes about its business,'' said
Ralph Pellecchia, a credit analyst at Fitch Investors Service,
according to the Times.
(New York Times 10-23 1)
Oct. 23, 2001
Houston Chronicle
SEC asks Enron for investing data=20
Stock price declines as regulators seek details on partnerships=20
By LAURA GOLDBERG=20
Copyright 2001 Houston Chronicle=20
Shares in Enron Corp. fell almost 21 percent Monday after the company discl=
osed federal securities regulators asked for details on investment partners=
hips formerly run by its chief financial officer.=20
The request covers transactions between Enron and two private partnerships,=
LJM Cayman and LJM2 Co-Investment, that did business with Enron.=20
The partnerships entered into complex financing and hedging arrangements wi=
th Enron.=20
Enron declined to say if the SEC's request -- which it called voluntary and=
said represents an "informal inquiry" -- included other issues.=20
The SEC request, made by fax Wednesday to Enron and followed up with a call=
Thursday, comes as the Houston-based energy trader was already fighting to=
put a series of problems behind it and regain credibility with investors a=
nd analysts.=20
"It's further bad news, further question marks related to Enron in general =
and this transaction specifically," Andre Meade, an analyst with Commerzban=
k Securities in New York, said of the SEC request.=20
Some investors prefer to sit on the sidelines until the issue clears up, Me=
ade said, adding: "The level of uncertainty with this stock has gotten pret=
ty high."=20
An SEC spokesman declined comment.=20
Enron's Chief Financial Officer, Andrew Fastow, managed both of the LJM par=
tnerships, according to SEC filings made by Enron last year.=20
Both partnerships are described as investment companies that primarily buy =
or invest in businesses involved in energy and communications.=20
Fastow resigned his roles with the LJM partnerships in June amid criticism =
and questions from some on Wall Street about a potential conflict of intere=
st.=20
Investors worried Monday that Fastow's duty to Enron shareholders competed =
with his duties to LJM, Meade said.=20
In a written statement Monday, Ken Lay, Enron's chairman and chief executiv=
e officer, said the company welcomed the SEC's request.=20
"We will cooperate fully with the SEC and look forward to the opportunity t=
o put any concern about these transactions to rest," said Lay, who reassume=
d the duties of CEO after Jeff Skilling resigned unexpectedly in August.=20
Enron said its external and internal auditors and attorneys reviewed the ar=
rangements, its board was fully informed of and approved the arrangements, =
which were disclosed in Enron's SEC filings.=20
The issue drew renewed interest from investors and analysts after Enron rel=
eased third-quarter earnings last Tuesday.=20
During the quarter, Enron took $1.01 billion in one-time charges to reflect=
losses in its broadband, retail electricity and water investments.=20
The amount also included $35 million related to "early termination" of Enro=
n's relationships with the LJM partnerships.=20
During a call with analysts the same day, Enron said it recorded a $1.2 bil=
lion reduction to shareholder equity, or the shareholders' ownership stake =
in the company, as part of the LJM termination.=20
Enron declined to answer questions Monday about the LJM entities, including=
those about their relationship with Enron or Fastow's role with them.=20
The day after Enron's third-quarter earnings release, the Wall Street Journ=
al ran the first of three articles highlighting the LJM partnerships, Fasto=
w and Enron.=20
The Journal's Friday report said LJM2 "realized millions of dollars in prof=
its in transactions it did with Enron," and that "Fastow, and possibility a=
handful of partnership associates, realized more than $7 million last year=
in management fees."=20
Shares in Enron, which closed last Tuesday at $33.84, ended the day Friday =
at $26.05. Then Monday, shares in Enron dropped by $5.40 to close at $20.65=
.=20
Anatol Feygin, an analyst with J.P. Morgan in New York, believes there were=
no improprieties surrounding LJM.=20
"From inception, the LJM situation was obviously one that would raise eyebr=
ows," said Feygin, adding Enron anticipated that and made sure proper legal=
structures were in place.=20
The LJM entities are what's known as off-balance sheet financing vehicles, =
he said. Generally, they allow a corporation to take on financial obligatio=
ns without having to report them as liabilities.=20
Feygin also said it appeared Enron intended to give Fastow an "opportunity =
to participate in the upside from these entities" to reward him.=20
Even though the LJM transactions have been disclosed by Enron, Meade noted =
that they are complicated, difficult to follow and their implications tough=
to understand.=20
In transactions detailed in an SEC filing made by Enron last year, LJM Caym=
an received shares of Enron common stock and LJM2 acquired assets from Enro=
n.=20
Another filing last year said LJM Cayman and/or LJM2 acquired various debt =
and equity securities of certain Enron subsidiaries and affiliates.=20
Investors are also concerned about potential shareholder lawsuits as well a=
s equity commitments facing Enron from two other financing vehicles called =
Whitewing and Marlin, Jeff Dietert, an analyst with Simmons & Co. Internati=
onal in Houston, wrote in a research note Monday.=20
If Enron should lose its current investment-grade quality debt rating, thos=
e equity commitments from Whitewing and Marlin could trigger steps that wou=
ld cause the value of Enron's current outstanding shares to become diluted.=
=20
At least two shareholders have already sued Enron's board in state district=
court, while two law firms filed suit on behalf of Enron shareholders Mond=
ay in federal court seeking class-action status.=20
Carol Caole, an analyst with Prudential Securities in Houston, downgraded E=
nron from a buy to a hold Monday primarily because of issues surrounding th=
e credibility of Enron's management.=20
Several times over the past six months, Caole asked specific questions of s=
enior Enron executives, she said. They denied problems existed, but six wee=
ks to two months later it was revealed there were, indeed, issues, she said=
.=20
Coale recently asked about an SEC investigation and was told there wasn't o=
ne. But, she said, it turns out it's an "inquiry," not an investigation.=20
Abreast of the Market
Minnesota Mining and GM Climb In a Rally That Builds Late in Day
By Robert O'Brien
Dow Jones Newswires
10/23/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -- During yesterday's Wall Street rally, investors responded with =
accommodation toward the release of third-quarter earnings results and four=
th-quarter forecasts.=20
Shares of Minnesota Mining & Manufacturing added $5.22, or 5.1%, to $107.39=
after the manufacturing company released third-quarter earnings, which nar=
rowly edged out analysts' projections, and spoke frankly of the challenges =
the company continues to face this quarter in light of economic weakness.
Despite this kind of hesitation about the economy's outlook, investors grav=
itated toward some of the manufacturing and capital-equipment stocks that t=
end to struggle during periods of weak economic activity. Shares of General=
Motors, for example, added 1.21, or 2.9%, to 42.57, Alcoa gained 1.16, or =
3.7%, to 32.83, and Fluor, an engineering and construction company, rose 1.=
79, or 4.2%, to 44.77.=20
Stock averages initially struggled for direction, reflecting some skepticis=
m about the sustainability of the market's recent success, before turning f=
irmly higher in the final two hours of trading. Trading levels thinned out,=
as well; on the New York Stock Exchange, less than 1.1 billion shares chan=
ged hands, compared with 1.2 billion shares Friday, an options-expiration s=
ession.=20
Nevertheless, market averages posted impressive gains. The Dow Jones Indust=
rial Average improved 172.92 points, or 1.88%, to 9377.03. The Nasdaq Compo=
site Index gained 36.77 points, or 2.2%, to 1708.08.=20
"We had another one of those days where there is a lack of liquidity, so an=
y moves, in either direction, just get exaggerated," Bob Basel, senior trad=
er at Salomon Smith Barney, said yesterday.=20
Shares of semiconductor companies, including makers of both chips and chip-=
making equipment, rose sharply after a spending forecast from Intel, the le=
ading chip maker, proved less grim than some experts had anticipated. The c=
ompany said its capital spending could be cut 10% to 20% in 2002 from this =
year's levels; that wouldn't be as severe as some chip industry experts had=
forecast.=20
Shares of Applied Materials advanced 2.22, or 6.8%, to 34.77 on Nasdaq, whi=
le KLA-Tencor gained 2.74, or 7.5%, to 39.25, and Lam Research improved 1.3=
6, or 7.8%, to 18.80, all on Nasdaq. Among chip makers, Analog Devices rose=
2.57, or 7.1%, to 38.74, LSI Logic gained 89 cents, or 5.6%, to 16.83, and=
Texas Instruments tacked on 1.17, or 4.2%, to 28.91. For its part, Intel r=
ose 1.15, or 4.8%, to 25.30 on Nasdaq.=20
Shares of Lexmark International dropped 5.58, or 11%, to 44.77. The Lexingt=
on, Ky., maker of computer printers reported third-quarter results that mat=
ched Wall Street's forecasts, but warned that it continues to face sluggish=
demand in the fourth quarter.=20
SBC Communications declined 2.24, or 5.1%, to 41.40. The telecommunications=
service provider reported third-quarter earnings that fell short of analys=
ts' forecasts, and warned that the company won't show "meaningful growth" n=
ext year.=20
Citrix Systems fell 4.14, or 16%, to 21.08 on Nasdaq. Dain Rauscher reduced=
its rating on the Fort Lauderdale, Fla., maker of computer networking prod=
ucts, saying the company faces competitive pressures from products introduc=
ed by rival vendors.=20
Jabil Circuit eased 16 cents, or 0.7%, to 22.90. The St. Petersburg, Fla., =
contract electronics maker adopted a so-called shareholder rights plan, whi=
ch is aimed at preventing an acquirer from gaining control of the company.=
=20
EMC advanced 68 cents, or 5.9%, to 12.19. The Hopkinton, Mass., maker of da=
ta-storage systems signed what was described as a multibillion-dollar enter=
prise storage agreement with Dell Computer. Dell improved 50 cents, or 2.1%=
, to 24.55 on Nasdaq.=20
SeaChange International advanced 88 cents, or 3.6%, to 25.03 on Nasdaq, boo=
sted by an upbeat research note from Dain Rauscher, which said the Maynard,=
Mass., provider of video-on-demand technology figures to have posted an up=
beat quarter.=20
Lucent Technologies declined 20 cents, or 2.8%, to 6.90. UBS Warburg, in a =
research note, expressed some caution about the outlook for the telecommuni=
cations equipment maker's quarterly results.=20
Emerson Electric gained 1.38, or 2.8%, to 50.27, even though the St. Louis =
manufacturer, which makes electronics and telecommunications products, amon=
g other product lines, reduced its earnings guidance for fiscal 2001.=20
Enron lost 5.40, or 21%, to 20.65, setting a 52-week low. The Houston energ=
y trader, whose stock has weakened since recent articles in The Wall Street=
Journal raised questions about the company's relationship with two limited=
partnerships organized by its chief financial officer, said it had receive=
d a request for information on Wednesday from the Securities and Exchange C=
ommission regarding some of its transactions with those partnerships.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
WORLD STOCK MARKETS: Wall St bargain hunters counter earnings gloom AMERICA=
S=20
Financial Times; Oct 23, 2001
By MARY CHUNG
US equities rose sharply yesterday with bargain hunting in technology stock=
s countering a slew of mostly disappointing corporate earnings and more ant=
hrax scares.=20
Gains accelerated late in the session as the Dow Jones Industrial Average s=
urged 172.92 to close at at 9,377.03 while the S&P 500 index added 16.42 at=
1,089.90. The Nasdaq Composite rose 36.78 at 1,708.09. Volume remained lig=
ht with 1.1bn trades in the NYSE.=20
Investors were upbeat in spite of a lack of positive news, suggesting under=
lying strength in the market and optimism for a rebound, some analysts said=
. The indices were slightly rattled after news that two postal workers in W=
ashington died after suffering symptoms consistent with anthrax, but the ma=
rket quickly regained its footing.=20
"The market is acting very well. It's come an awful long way in a short tim=
e and had to deal with anthrax," said Alfred Goldman, chief market strategi=
st at AG Edwards. "The message is that investors and consumers and the coun=
try are in a recovery mode."=20
Semiconductor stocks showed strength with Intel up 4.7 per cent at Dollars =
25.30 and Advanced Micro Devices 4.2 per cent at Dollars 9.58.=20
Microsoft rose 3.9 per cent at Dollars 60.16 before the launch this week of=
its Windows XP operating system. Lexmark dropped 11 per cent at Dollars 44=
.77 after the company reported third-quarter results that met estimates, bu=
t warned of a fourth-quarter revenue shortfall. Applied Digital Solutions g=
ained 66 per cent at 58 cents after the company said it had formed a subsid=
iary to develop and market its ThermoLife thermoelectric generator product =
powered by body heat.=20
3M gave a lift to Dow components, up 5.1 per cent at Dollars 107.39 after t=
he maker of Post-it notes said quarterly earnings beat expectations by a pe=
nny a share. The company forecast fourth-quarter profit would be in line wi=
th analyst estimates.=20
SBC Communications was the biggest decliner within the Dow, down 5.1 per ce=
nt to Dollars 41.40 after it said earnings failed to meet Wall Street conse=
nsus estimates.=20
American Express gained 3.4 per cent to Dollars 30.32 despite reporting a 6=
0 per cent drop in third-quarter earnings.=20
Dow components Citigroup and JP MorganChase tacked on 2.5 per cent and 4.2 =
per cent respectively. Shares in Alcoa were up 3.7 per cent at Dollars 32.8=
3 and ExxonMobil 1.4 per cent at Dollars 41.12.=20
Enron fell 20.7 per cent at Dollars 20.65 after the energy trading company =
said the Securities and Exchange Commission requested it voluntarily provid=
e information regarding certain transactions.=20
In Toronto the S&P 300 composite index fell just 0.08 per cent to 6,905.21 =
at the close.=20
Copyright: The Financial Times Limited
Milberg Weiss Announces Class Action Suit Against Enron Corp.
10/22/2001
Business Wire
(Copyright (c) 2001, Business Wire)
NEW YORK--(BUSINESS WIRE)--Oct. 22, 2001--The law firm of Milberg Weiss Ber=
shad Hynes & Lerach LLP announces that a class action lawsuit was filed on =
October 22, 2001, on behalf of purchasers of the common stock of Enron Corp=
. ("Enron" or the "Company") (NYSE:ENE) between January 18, 2000 and Octobe=
r 17, 2001, inclusive. A copy of the complaint filed in this action is avai=
lable from the Court, or can be viewed on Milberg Weiss' website at: http:/=
/www.milberg.com/enron/=20
The action, numbered H013630, is pending in the United States District Cour=
t for the Southern District of Texas, Houston Division, located at 515 Rusk=
Street, Houston TX 77002, against defendants Enron, Kenneth Lay, Jeffrey K=
. Skilling and Andrew Fastow. The Honorable Melinda Harmon is the Judge pre=
siding over the case.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of =
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder,=
by issuing a series of material misrepresentations to the market between J=
anuary 18, 2000 and October 17, 2001, thereby artificially inflating the pr=
ice of Enron common stock. Specifically, the complaint alleges that Enron i=
ssued a series of statements concerning its business, financial results and=
operations which failed to disclose (i) that the Company's Broadband Servi=
ces Division was experiencing declining demand for bandwidth and the Compan=
y's efforts to create a trading market for bandwidth were not meeting with =
success as many of the market participants were not creditworthy; (ii) that=
the Company's operating results were materially overstated as result of th=
e Company failing to timely write-down the value of its investments with ce=
rtain limited partnerships which were managed by the Company's chief financ=
ial officer; and (iii) that Enron was failing to write-down impaired assets=
on a timely basis in accordance with GAAP. On October 16, 2001, Enron surp=
rised the market by announcing that the Company was taking non-recurring ch=
arges of $1.01 billion after-tax, or ($1.11) loss per diluted share, in the=
third quarter of 2001, the period ending September 30, 2001. Subsequently,=
Enron revealed that a material portion of the charge related to the unwind=
ing of investments with certain limited partnerships which were controlled =
by Enron's chief financial officer and that the Company would be eliminatin=
g more than $1 billion in shareholder equity as a result of its unwinding o=
f the investments. As this news began to be assimilated by the market, the =
price of Enron common stock dropped significantly. During the Class Period,=
Enron insiders disposed of over $73 million of their personally-held Enron=
common stock to unsuspecting investors.=20
If you bought the common stock of Enron between January 18, 2000 and Octobe=
r 17, 2001, you may, no later than December 21, 2001, request that the Cour=
t appoint you as lead plaintiff. A lead plaintiff is a representative party=
that acts on behalf of other class members in directing the litigation. In=
order to be appointed lead plaintiff, the Court must determine that the cl=
ass member's claim is typical of the claims of other class members, and tha=
t the class member will adequately represent the class. Under certain circu=
mstances, one or more class members may together serve as "lead plaintiff."=
Your ability to share in any recovery is not, however, affected by the dec=
ision whether or not to serve as a lead plaintiff. You may retain Milberg W=
eiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve =
as your counsel in this action.=20
Milberg Weiss Bershad Hynes & Lerach LLP, a 190-lawyer firm with offices in=
New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle =
and Philadelphia, is active in major litigations pending in federal and sta=
te courts throughout the United States. Milberg Weiss has taken a leading r=
ole in many important actions on behalf of defrauded investors, consumers, =
and companies, as well as victims of World War II and other human rights vi=
olations, and has been responsible for more than $30 billion in aggregate r=
ecoveries. The Milberg Weiss Web site (http://www.milberg.com) has more inf=
ormation about the firm.=20
If you wish to discuss this action with us, or have any questions concernin=
g this notice or your rights and interests with regard to the case, please =
contact the following attorneys:=20
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New=
York, NY, 10119-0165=20
Phone number: (800) 320-5081 Email: [email protected] Website: http:/=
/www.milberg.com=20
William S. Lerach or Darren J. Robbins 600 West Broadway1800 One America Pl=
azaSan Diego, CA 92101-3356 Phone number: (800) 449-4900
CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP Steven G. Schulman or Sam=
uel H. Rudman 800/320-5081 Email: [email protected] Website: http://w=
ww.milberg.com or William S. Lerach or Darren J. Robbins 800/449-4900=20
19:16 EDT OCTOBER 22, 2001=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron To Host Conference Call Tues 9:30 am EDT
10/22/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -(Dow Jones)- Enron Corp. (ENE) will hold a conference call at 9:30=
a.m. EDT Tuesday to address investor concerns, the company said in a press=
release Monday.=20
Earlier Monday, a shareholder filed a derivative lawsuit against Enron alle=
ging the board breached their fiduciary duties by allowing Chief Financial =
Officer Andrew Fastow to create and run certain limited partnerships.
Last week, Enron said it received a request for information about "certain =
related party transactions" from the Securities and Exchange Commission.=20
On Oct. 16, Enron announced that it would take a $35 million charge relatin=
g to the limited partnerships and revealed that the company had to repurcha=
se 55 million of its shares in order to unwind its involvement in the partn=
erships, thereby reducing the company's shareholder equity by $1.2 billion.=
=20
Shares of Enron closed Monday at $20.65, down $5.40, or 20.7%, on New York =
Stock Exchange volume of 36.4 million shares. Average daily volume is 5.8 m=
illion shares. In intraday trading, the shares reached a 52-week low of $19=
.67. The previous 52-week low was $24.46, reached on Sept. 27.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Janus Had Biggest Enron Stake at End of 2nd-Quarter (Update1)
2001-10-22 18:04 (New York)
Janus Had Biggest Enron Stake at End of 2nd-Quarter (Update1)
(Adds Stilwell shares at bottom.)
Denver, Oct. 22 (Bloomberg) -- Janus Capital Corp., whose
stock funds have lost more than a third of their value this year,
may get another jolt from Enron Corp.
As of June 30, Denver-based Janus was the biggest
institutional holder of Enron, owning 42.8 million shares, or a
5.71 percent stake in the largest U.S. energy trading company,
according to Thomson Financial/Carson.
Enron shares have fallen 39 percent over the past four days
on concern that the company's dealings with partnerships run by
its chief financial officer contributed to investment losses. The
Securities and Exchange Commission has asked for information on
the partnerships, Enron said.
Janus, which boosted its Enron stake in the past year in an
effort to diversify its technology-heavy stock funds, is among a
handful of firms including Putnam Investments, Alliance Capital
Management, Barclays Global Investors and Fidelity Investments
that owned more than 2 percent of the Houston-based company as of
June 30, according to Bloomberg data.
``It was definitely a real growth darling,'' said Christine
Benz, a senior analyst at Chicago-based fund tracker Morningstar
Inc. ``In a year like 2000, when almost nothing was working for
growth managers, Enron emerged as a story that a lot of growth
managers could like.''
Fund Holdings
According to Thomson Financial, 1,187 mutual funds, or 15.4
percent of all U.S. stock funds, owned a combined 207.9 million
Enron shares as of June 30. Combined losses on the holdings amount
to $2.7 billion since Tuesday.
According to the latest available data compiled by Thomson,
the biggest fund holders of Enron were: Janus Fund, with 2.15
percent; Janus Twenty Fund, with 1.19 percent; Alliance Premier
Growth Fund, with 1.14 percent; American Century Ultra Fund, with
1.01 percent; Janus Mercury Fund, with 0.88 percent; Vanguard 500
Index Fund, with 0.82 percent; Fidelity Magellan Fund, with 0.73
percent; AIM Value Fund, with 0.6 percent; CREF Stock Account,
with 0.58 percent; and, Putnam Investors Fund, with 0.52 percent.
Janus Fund has lost 33.2 percent this year through Friday,
while Janus Twenty Fund has lost 33.4 percent and Janus Mercury
Fund has fallen 34 percent. A Janus spokeswoman wasn't immediately
available to comment.
Morningstar's Benz said she suspects Janus fund managers have
already begun trimming their Enron positions.
Enron shares had fallen 59 percent this year before last
week's news on concerns about financial reporting and money-losing
investments outside energy trading, such as trading space on
broadband telecommunications networks and building water treatment
plants.
The stock fell $5.40, or 21 percent, to $20.65 in New York
trading today.
``Anecdotal evidence that I'm hearing from the fund managers
there is that they had been trimming pretty aggressively,'' said
Benz. She added that it's ``difficult to make the assertion that
they are in the clear.''
Janus Capital is owned by Kansas City, Missouri-based
Stilwell Financial Inc., whose shares gained 73 cents today to
$22.52. Stilwell shares have fallen 43 percent this year.
Enron Says SEC Asks About Related-Party Transactions (Update9)
2001-10-22 18:30 (New York)
Enron Says SEC Asks About Related-Party Transactions (Update9)
(Adds information on conference call in 26th paragraph.)
Houston, Oct. 22 (Bloomberg) -- Enron Corp.'s shares fell 21
percent after the Houston-based company said the Securities and
Exchange Commission requested information on partnerships run by
Chief Financial Officer Andrew Fastow and other executives.
Enron, the largest energy trader, created partnerships and
other affiliated companies to buy and sell assets such as power
plants to lower the debt on its books. An investor sued Enron's
board Wednesday, saying two partnerships cost the company $35
million and Fastow's leadership of them was a conflict of
interest.
Investors today said they were concerned that Enron may be
forced to dismantle the affiliated companies by paying off the
owners in cash or stock. Chief Executive Ken Lay said last week he
may be have to ``unravel'' agreements that created the companies
if Enron's debt ratings fall too far.
``We need confidence their long-term credit rating won't go
below investment grade,'' said Roger Hamilton, an analyst at John
Hancock's value funds, which own 600,000 Enron shares.
Enron reduced shareholders' equity by $1.2 billion when it
repurchased 55 million shares of two such partnerships controlled
by Fastow, LJM Cayman and LMJ2 Co-Investment, the Wall Journal
reported last week.
Dismantling more of the affiliated companies and partnerships
would cost Enron or its shareholders as much as $3 billion, Ray
Niles, a Salomon Smith Barney analyst, wrote in a report to
investors today.
Shares Plunge
Enron shares fell $5.40 to $20.65. They touched $19.67 during
the day's trading, the lowest level since Jan. 15, 1998.
The stock has fallen 75 percent this year amid concerns about
failed investments in trading of space on fiber-optic
communications networks and a water company, and the resignation
of Jeff Skilling as CEO in August after seven months on the job.
While Skilling said he resigned for personal reasons,
investors say his departure led them to question whether the
company was concealing problems, including possible liabilities
from affiliated companies.
On Tuesday, Enron surprised many investors when it reported a
$618 million third-quarter loss, the result of writing off $1.01
billion in failed investments.
Moody's Investors Service placed the company's debt on watch
for possible downgrade. The company's debt is rated at investment
grade by Fitch, Standard & Poor's and Moody's.
The company received a faxed request for information from the
SEC on Wednesday asking for information, spokesman Mark Palmer
said, and will respond ``as soon as possible.''
``We will cooperate fully with the SEC and look forward to
the opportunity to put any concern about these transactions to
rest,'' Lay, who is also Enron's chairman, said in a statement.
Dilution Fears
Enron has formed at least 18 companies to serve as financing
vehicles for its projects, based on filings with the Texas
secretary of state. Fastow and other Enron executives are named as
the controlling partners or the board members in the companies.
Some have bought Enron assets such as power plants, removing
the debt for those projects from Enron's books. That allows Enron
to keep cash earned from the main trading business from supporting
what it views as secondary businesses, Standard & Poor's debt
analyst Todd Shipman said.
Enron brokers trades of electricity, natural gas and other
commodities as well as owns power plants and natural-gas
pipelines.
Dismantling the affiliates would be costly. Whitewing
Management, an affiliated company that has bought 14 Enron power
plants and lists Fastow as managing director, holds 250,000
preferred shares of Enron.
Enron may have to convert the preferred shares to common
stock if share prices fall below a certain level and the credit
rating drops below investment grade, according to company filings.
That would dilute the value of common shareholders' investment.
``The concern is how many of these dilutive structures are
out there?'' Shipman said. ``Investors are worried they might have
to share their Enron earnings with a lot more people than they
originally thought.''
Worrisome Financing
Enron's auditors and attorneys reviewed the company's
``related party arrangements,'' the board approved them, and they
were disclosed in SEC filings, Enron said in its statement.
That hasn't eased concerns. The reduction of shareholder
equity by $1.2 billion from the LJM partnerships is reason to
worry about Enron's other financing vehicles, wrote Niles, the
Salomon analyst. Enron also may take another $2.4 billion in
losses from investments in the Dabhol power plant in India and
projects in South America, he wrote.
Bonds Fall
Enron's 8 percent coupon bonds due in 2005 fell $34 per
$1,000 face value to be offered at $1,022 today from $1,056 on
Friday, traders said. Yield on the debt rose to 7.33 percent from
6.33 percent.
Based on Bloomberg composite ratings, most of Enron's long-
term debt is rated at BBB2 and BBB1, two or three levels above
investment grade.
Fastow continues to work, and Enron hasn't punished him,
Palmer said. Fastow declined to be interviewed, spokeswoman Karen
Denne said. SEC spokesman John Heine declined to comment on the
agency's request to Enron.
``We believe everything that needed to be considered and done
in connection with these transactions was considered and done,''
Lay said in the statement.
Enron will hold a conference call to discuss investors'
concerns at 9:30 a.m. New York time Tuesday. The call may be
accessed through the ``Investors'' section of Enron's Web site at
http://www.enron.com.
--Russell Hubbard in the Princeton newsroom at 609-750-4651, or at
[email protected] and Mark Johnson in the Princeton newsroom
at (609) 750-4662, or [email protected], with reporting by
Terry Flanagan/slb/alp/pjm/slb/*atr/alp/taw
Trusts Keeping Enron Off Balance
By Peter Eavis <mailto:[email protected]>
Senior Columnist
TheStreet.com
10/22/2001 07:15 AM EDT
URL: <http://www.thestreet.com/markets/detox/10002702.html>
Enron (ENE:NYSE - news - commentary) stock plunged 20% last week after the =
energy giant revealed that a complex financing deal caused a $1.2 billion h=
it to its equity. But other big deals that have yet to receive much public =
scrutiny could further damage the company's balance sheet.=20
In the spotlight last week were transactions done with investment partnersh=
ips called LJM2 and LJM Cayman. An examination of the LJM2-related equity w=
ritedown can be found here.=20
However, the LJM deals make up only part of Enron's sophisticated financing=
arrangements. Also at issue are two large trusts that contain assets Enron=
shifted from its balance sheet. These are the $1 billion Marlin Water Trus=
t II and the $2.4 billion Osprey Trust, usually known as Whitewing.=20
The key risk for investors is how Enron chooses to repay these trusts if th=
ey don't unwind as planned. The company may end up issuing stock to repay m=
oney borrowed through the trusts. This would dilute existing shareholders. =
Alternatively, Enron could resort to using cash raised through sales of on-=
balance sheet assets. But this would hamper efforts to reduce debt and depr=
ive the company's profitable business lines of much-needed capital.=20
Whitewing and a Prayer?
Though set up by Enron, Marlin II and Whitewing are legally distinct from t=
he company. Institutional investors bought notes issued by the trusts. The =
$3.4 billion in proceeds from the notes flowed to Enron.=20
Both trusts are scheduled to unwind in 2003. Originally, Enron had hoped to=
repay them by selling the trusts' underlying assets. This repayment method=
would have had a minimal impact on Enron's balance sheet.=20
However, there's a potential problem brewing with this approach. The value =
of the assets may be too low to raise sufficient funds to pay back the trus=
t investors. Hence Enron's two unenviable options: issuing stock, or raisin=
g cash from its own balance sheet.=20
Enron treasurer Ben Glisan concedes that assets in Marlin II won't be suffi=
cient to pay it back. But he adds that proceeds from planned sales of on-ba=
lance sheet assets will provide Enron with the necessary funds for Marlin I=
I. When asked if Whitewing's assets are adequate for repayment, Glisan repl=
ied: "We believe so."=20
In reference to the two trusts, Enron CEO Kenneth Lay said on a conference =
call Tuesday: "We anticipate the sale of assets will be the primary source =
of repayments."=20
Sterling Marlin
TheStreet.com hasn't seen offering documentation for Whitewing; Enron didn'=
t provide it when requested. But TSC has reviewed the Marlin II prospectus.=
Here's how Marlin II works. Enron took water assets, primarily based in th=
e U.K., off its balance sheet, and the Marlin II trust took a stake in them=
. Meanwhile, Marlin II issued senior debt to investors, the proceeds of whi=
ch went to Enron. The company didn't have to recognize these notes as debt =
on its balance sheet, due to the structure of the trust. Marlin II replaced=
a similar trust called Marlin that was set to mature at the end of this ye=
ar.=20
Ideally, the aim was for Enron managers to maximize the value and profitabi=
lity of the assets over the life of Marlin and Marlin II so it could sell t=
hem off and pay down the trusts. To cover the risk that asset sales wouldn'=
t raise enough money, Enron also pledged to issue as much new convertible p=
referred stock as might be needed to pay off the notes.=20
As it happened, the water assets didn't perform well. In fact, Enron set up=
Marlin II in July to succeed the original Marlin because it wanted to avoi=
d paying off the first Marlin with convertible stock, or with cash from its=
own balance sheet. This move risked angering the rating agencies that had =
agreed not to treat Marlin as debt because of Enron's pledge to backstop it=
with preferred stock. Suddenly, it seemed Enron was wriggling out of its c=
ommitment to make good with stock.=20
Enron's Glisan responds that many of the investors in the first Marlin also=
invested in Marlin II, illustrating that investors weren't upset by the ma=
neuver.=20
Glisan says Enron almost certainly won't decide to issue stock to pay off M=
arlin II. Instead, he adds, money from pending asset sales can be used to p=
ay it off when it matures in July 2003. When asked if Enron might use the e=
xpected $1.9 billion in proceeds from selling Portland General, the utility=
based in Portland, Ore., Glisan replied: "That's a good one."=20
But using the Portland General windfall would run counter to Enron's freque=
ntly stated strategy of selling off low-yielding assets and investing the p=
roceeds in higher-yielding businesses. Portland General is almost certainly=
a more profitable business than the U.K.'s Wessex Water, which is the domi=
nant asset in Marlin II. In addition, doing so would mean Enron couldn't us=
e all the Portland proceeds to pay off debt. Enron aims to get its debt-to-=
total-capital ratio down to 40%, from the current 50%.=20
Maturity
What about Whitewing, which matures in early 2003? Glisan lists Whitewing's=
assets as: Central American gas distribution assets; turbines destined for=
European power stations; interests in European power stations; and various=
debt and equity participations in energy investments. Glisan says these as=
sets can be sold to pay off the $2.4 billion in notes issued by the trust.=
=20
But what would happen if the Whitewing assets can't fetch the necessary pri=
ce? Enron could sell off more on-balance-sheet assets. But, again, this wou=
ldn't help debt-reduction efforts, and it may be running short of large ass=
ets that it can quickly sell.=20
Whitewing is backed with Enron convertible stock. But Enron may be reluctan=
t to issue paper when its stock is so far below recent highs, and current s=
hareholders may begrudge the prospect of further dilution.=20
Investors also need to keep their eyes on the early-repayment triggers of t=
he trusts. In fact, the stock price-related element of the triggers has alr=
eady been set off. For Whitewing, the stock has to fall below $59.78; for M=
arlin II, the stock has to be under $34.13. However, something else has to =
happen before the trust investors can claim their money back through asset =
sales and stock issuance. Enron's credit rating must fall below investment =
grade. That looks to be a long shot, since its rating is currently three no=
tches above subinvestment grade. But it is something the market will watch =
after Moody's said last week that it was putting Enron on review for a poss=
ible downgrade.=20
Despite all the questions stemming from the trusts, Enron still seems keen =
to use the structure. Last week, Barclays Capital was inviting investors to=
subscribe to an Enron-related entity called the Besson Trust. This is bein=
g set up to enable Enron "to monetize substantially all of its interests in=
EOTT Energy Partners," an Enron affiliate that markets and transports crud=
e oil. Expected proceeds from the deal are $227 million, according to the p=
rospectus. Could Enron be setting up new trusts to pay off damaged old trus=
ts?=20
Due to off-balance sheet financings like Marlin II and Whitewing, it's clea=
r that uncertainty could weigh on Enron's battered stock for some time.=20
Why Enron's Writedown Unnerves Some Investors
By Peter Eavis <mailto:[email protected]>
Senior Columnist
TheStreet.com
10/22/2001 07:15 AM EDT
URL: <http://www.thestreet.com/markets/detox/10002713.html>
Enron is trying to improve disclosure to investors, but its decision to red=
uce equity by $1.2 billion in the third quarter has created dismay and conf=
usion in the market.=20
The action was disclosed in a dubiously discreet manner. More important, in=
vestors are struggling to pinpoint how the shrinkage will affect Enron's ba=
lance sheet, profits and earnings guidance.=20
Enron didn't provide answers to questions submitted on the equity reduction=
.=20
Enron doesn't include a balance sheet in its earnings release, so the equit=
y decrease couldn't be spotted in numbers supplied Tuesday. And even though=
Enron did break out $1 billion in earnings charges in its release, the com=
pany didn't feel it necessary to mention the equity write down anywhere in =
the text.=20
Instead, the public first heard about it on a Tuesday conference call. CEO =
Kenneth Lay said Enron had shrunk its equity as a result of terminating a s=
o-called "structured finance arrangement." The Wall Street Journal later re=
ported that Enron's counter-party in this transaction was an investment par=
tnership called LJM2 Co-Investment, which has set up and run by Enron's fin=
ance chief, Andrew Fastow.=20
This is what Lay said on the Tuesday call about the equity move: "In connec=
tion with the early termination, shareholders' equity will be reduced appro=
ximately $1.2 billion, with a corresponding significant reduction in the nu=
mber of diluted shares outstanding." According to The Journal, Lay then sai=
d Wednesday on another call that Enron had repurchased 55 million shares.=
=20
Enron's supporters count Lay's mention of a reduction in the share count as=
bullish, because it should boost earnings per share numbers in the future.=
=20
But there are two possible problems with this theory.=20
First, Enron affirmed its previous earnings guidance that it expects to mak=
e $2.15 per share in operating earnings next year. Critically, the company =
did not say whether its guidance was given using a share count without the =
55 million shares or not. If the forecast does assume the exclusion of the =
55 million shares, the company should have upped its 2002 per-share earning=
s forecast by around 6%, since that's the amount by which the share count w=
ill be reduced. Enron needs to say what share count it's using in its guida=
nce.=20
Second, it's almost impossible to determine where these shares were ever re=
corded, casting a certain amount of doubt on Lay's assertion that the share=
count will come down.=20
Why question the CEO? Well, in its 2000 annual report, Enron included some =
disclosure of the 55 million shares connected with LJM2. It reads: "At Dece=
mber 31, 2000, Enron had derivative instruments...on 54.8 million shares of=
Enron common stock." The derivative instruments appear to be types of opti=
ons, or agreements that give the counterparty the right to buy or sell stoc=
k at agreed prices.=20
But these derivatives-linked shares don't show up where they should in the =
annual report: in the table that breaks out the difference between the basi=
c and diluted share counts. The line item in this table that shows options-=
related shares totals only 43 million shares, which is close to the amount =
of employee pay options that qualified for inclusion. Therefore, that numbe=
r almost certainly doesn't include the 55 million LJM2-related shares. The =
fact is, at least some of the 55 million derivatives-linked shares should b=
e included if the derivatives were like normal options. That's because the =
LJM2 derivatives appear to have been "in the money", or profitable for the =
holders. Typically, all in-the-money options-based stock has to be included=
in the diluted share count. And these LJM2 derivatives did appear to have =
that status at the end of 2000. Back then, Enron stock was trading around $=
80, way above the average $68 level at which these derivatives made money f=
or LJM2.=20
Maybe these weren't simple options and had other conditions attached that e=
xcluded them from the diluted share count. That's what disclosure elsewhere=
in the annual report appears to imply. Alternatively, the options were emb=
edded somewhere else in the share count table or equity disclosure, though =
it's hard think where.=20
Presumably, investors will get a full explanation in Enron's quarterly fina=
ncial results filing with the Securities and Exchange Commission, due by th=
e middle of November.
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arnold-j/deleted_items/472.
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subject: JDRF Cyber Auction & Update Information
content: This Sunday, October 28th, is the Juvenile Diabetes Research Foundation (JDRF) Walk to Cure Diabetes at Greenspoint Mall at 8:00 a.m. In preparation for the big event, we have several fun activities scheduled to take place this week as detailed below.
JDRF Cyber Auction - The Cyber Auction will take place this Wednesday, October 24th, through Thursday, October 25th. For details please go to the Enron home page and click on JDRF Cyber Auction or click http://ecpdxapps01.enron.net/apps/auction.nsf for the direct link. The Auction this year is hosted by EGS.
Big E Caf? - This Friday, October 26th, 11:30 - 1:00 p.m. on Andrews Street in front of the Enron Center North building.
Lunch - Fajita lunch with all the trimmings provided by Taquera del Sol for $5.00.
Entertainment - Live entertainment provided by Mango Punch.
JDRF Raffle - Raffle tickets for two roundtrip Continental Airline tickets for $5.00 each. Raffle tickets for two roundtrip British Airways tickets for $10.00 each. Winning tickets will be drawn at 2:00 p.m. on Friday, October 26th.
JDRF Bake Sale - Cakes, cookies and Halloween treats will be available for purchase.
JDRF T-shirt Sale - Enron/JDRF T-shirts will be available for a $25 donation.
JDRF Sneaker (paper) Sales - The competition continues between business units - sneakers will sale for $5.00 each.
For those of you that have signed up to join us for the walk, please continue to collect donations and watch your email this week for further information regarding the Walk. For those of you that have not signed up, please join us for the Walk. Although we have only a few days remaining until the walk, it is not too late to sign up and join us for this great event. It only takes a moment to fill out a walk form and you will get an Enron/JDRF T-shirt for collect or donating $25 or more, and will join hundreds of Enron employees and several thousand Houstonians on the Walk. This event will be a blast. The Enron tent will be great with lots of good food and entertainment and everyone will have a fun time. Parking at the walk site will be free.
If you cannot attend the Walk, please support one of your local walkers, participate in the cyber auction or join us for the Big E Caf? on Friday to participate in some of our other great fundraising activities. We want to keep our standing as the number one walk team in the Gulf Coast area, Texas, and the entire Southern Region of the U.S., as well as in the top 10 nationally.
Please contact Janice Riedel at X-37507 or Cathy Phillips at X-36898 to sign up as a walker, make a donation, or ask any questions you may have. Come join the fun.
Thank you for your support and generosity.
Mike McConnell
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All Enron Houston@ENRON <??SAll Enron Houston@ENRON>
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arnold-j/deleted_items/473.
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subject: hi
content: How are you? Ok I'm beginning to think that I am going to have to ask you out on a date in order to get my necklace back. (which by the way I've never done) What do you have going on this week? Do you want to get together? I have band practice tonight and that's about it for the week. Let me know.
Kim
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arnold-j/deleted_items/474.
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subject: Natural Gas Origination
content: Our natural gas business continues to benefit from effective account management and resource allocation focused on identifying and responding to the needs of our varied customers. In order to keep our organization optimally structured and to facilitate additional growth, we are making the following changes:
Producer/Wellhead Group
The current mid-market, origination and wellhead pricing activity currently within the Central and Eastern Gas Regions will be consolidated with the Derivatives group under Fred Lagrasta. This will create a single business unit focused upon the needs of the producing industry within the Eastern U.S. The producer focus in the Western U.S. and Texas will remain unchanged reporting to Mark Whitt and Brian Redmond respectively.
Strategic Asset Development
Laura Luce will move from her role in the Central Region to lead an effort focused strictly on identifying and entering into long-term strategic arrangements within the Central and Eastern Regions. This initiative will focus on a limited number of selected markets that provide strategic opportunities for partnering in asset development, asset management and optimization. This effort will continue to work very closely with the regional leads.
Central Origination and Mid-Market
Frank Vickers will continue his current role in the Eastern Region and will assume the leadership role for Mid-Market and Origination activity in the Central Region.
There will be no changes to the West and Texas Origination groups headed respectively by Barry Tycholiz and Brian Redmond.
Please join us in congratulating Fred, Laura and Frank in their new roles.
Louise & John
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All Enron Employees North America@ENRON <??SAll Enron Employees North America@ENRON>
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arnold-j/deleted_items/476.
|
subject: ALL daily charts and matrices as hot links 10/25
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. ? 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude21.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas21.pdf
No distillate or unleaded charts today.
Dec WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clz-qoz.pdf
Dec Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf
Dec Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf
Dec/May Heat Spread http://www.carrfut.com/research/Energy1/hoz-hok.pdf
Jan/Feb Heat Spread http://www.carrfut.com/research/Energy1/hof-hog.pdf
Nov Gas/Heat Spread http://www.carrfut.com/research/Energy1/hux-hox.pdf
Dec Gas/Heat Spread http://www.carrfut.com/research/Energy1/huz-hoz.pdf
Nov/Mar Unlead Spread
http://www.carrfut.com/research/Energy1/hux-huh.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG21.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG21.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL21.pdf
Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606
| ||
arnold-j/deleted_items/477.
|
subject: Nat Gas market analysis for 10-25-01
content: Attached please find the Natural Gas market analysis for today.
Thanks,
Bob McKinney
- 10-25-01 Nat Gas.doc
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arnold-j/deleted_items/478.
|
subject: Reminder About Hourly Power
content: Hourly Power Launched on ICE Tomorrow!!
As a reminder, IntercontinentalExchange will be launching Hourly Power tomo=
rrow for all hubs currently traded in the West as well as PJM in the East. =
All commissions for Hourly transactions will be waived for one month. Eff=
ective December 1, traders will pay a flat fee of $4.00 per side for each t=
rade. Please call your ICE representative with any questions.
24-hour Help Desk 770-738-2101
=
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=20
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arnold-j/deleted_items/479.
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subject: There's Still Time to See America at Great, Low Weekend Rates!
content: =09=09=09[IMAGE]=09=09
=09=09=09=09[IMAGE]=09
[IMAGE]=09[IMAGE][IMAGE] Go Work Go PlayGo USA Click here to book online=
today From sea to shining sea, with over 300 unique destinations, we'v=
e got you covered. There's still time to See America with Starwood Hotels =
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rates and earn 500 bonus Starpoints with every online booking or call 1 87=
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de is not required for online booking. Visit starwood.com and book now. =
Terms & Conditions Offer is valid at participating hotels only. The St. =
Regis New York and St. Regis Club at the Essex House in New York and Hawai=
i hotels do not participate in this promotion. When reserving by phone, c=
all 1-877-782-0114, for weekend promotion you must request promotion code G=
O USA. Weekend rates are for single or double occupancy per night and are =
available Thursday-Sunday only with a Friday and/or Saturday night stay re=
quired from 10/5/01-1/27/02. Weekend reservations must be made between 10/5=
/01-1/27/02. A limited number of rooms may be available at these rates. Not=
to be combined with other offers. Weekday savings of up to 40% are based o=
n comparisons of rates quoted for select dates and locations midweek (Mon-W=
ed) from 10/5/00-1/27/01. Percentages may vary by market. Rates are subject=
to availability based on occupancy. Blackout dates may apply at some prope=
rties. Advance reservations are required. All rates are quoted in U.S. Doll=
ars. Rates are based on standard room type, and do not include taxes, gratu=
ities, or additional charges. Additional temporary energy charge plus appli=
cable tax per room/per night may apply. Offer is not available to groups. C=
hildren under 17 stay free in parent's room, using existing bedding. Certai=
n restrictions apply. See Web site for details. Starwood Hotels & Resorts i=
s not responsible for typographical errors. For Starwood Preferred Gues=
t members: room upgrade to a Preferred room based on availability at check=
-in. 4pm checkout is subject to availability at resorts. ? 2001 Starwood=
Hotels & Resorts Worldwide, Inc. If you would like to receive future e-=
mails in text-only format, click here . You are subscribed as: jarnold@enr=
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lease click here . Click here to review the Starwood Hotels & Resorts Wor=
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[IMAGE] ?2001 Starwood Hotels & Resorts Worldwide, Inc. =09
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arnold-j/deleted_items/48.
|
subject: U.S. Soccer Presents
content: "Center Circle" (October 2001, Inaugural Issue)
In this Inaugural Issue of U.S. Soccer's new monthly fan newsletter / e-zine, you'll find the items listed below. Some will return next month, others will be entirely fresh for November.
1) Armchair Midfielder (MLS Playoffs)
2) Word Association (w/ MNT defender Jeff Agoos)
3) At the Movies (w/ U-17 MNT defenders Chris Lancos and Gray Griffin)
4) Queries and Anecdotes (w/ WNT midfielder Julie Foudy)
5) Big Woman on Campus (w/ WNT/U-21 WNT midfielder Aleisha Cramer)
6) Superstar!!! (w/ WNT forward Tiffeny Milbrett)
7) Mark That Calendar (2001 Lamar Hunt U.S. Open Cup)
8) Point-Counterpoint (w/ journalists Jere Longman and Steve Davis)
9) From the Bleachers (w/ PHILIPS chant contest winner Randal Bird)
10) "You Don't Know Jack (Marshall)" (U.S. Open Cup history)
1) ARMCHAIR MIDFIELDER
A monthly column about the State of Soccer, from the world game to Team America to pro soccer in the good ‘ole U-S-of-A, all with a healthy dose of cynicism.
This month, the Armchair Midfielder will handicap the second round of the MLS playoffs and go on record with a pick for MLS Cup 2001 champion.
So the defending champs are gone, and with them went their blase brand of defensive-minded soccer. MLS Cup will not be "Goin' to Kansas City" this year. And let's face it, we as soccer fans are all better off with the Wizards watching the final from an Irish pub in downtown K.C.
Instead, we get a classic (okay, the word is a bit of a leap considering MLS is just a toddler) match-up between the Galaxy and the Fire. Here are two teams that have been good every year that they've been in MLS. Sure, they've each had their ups and downs, but you can always count on them to play attractive soccer.
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2462
"BEHIND CLOSED DOORS"
A section that will let you get to know the real personalities of your favorite Men's, Women's and Youth National team players through various funny and unique first-person accounts. In this issue, you'll find:
2) "WORD ASSOCIATION" (w/ Jeff Agoos)
Jeff Agoos may or may not need some sort of therapy. Regardless, with 25 prompts on topics both easy and tough, we play psychiatrist to get a candid look inside the mind of San Jose Earthquakes star Jeff Agoos, one of the most accomplished defenders and one of the most enduring personalities in U.S. Soccer history.
"Goose" has been a member of the U.S. Men's National Team program since 1985 and has the rare distinction of being the only men's player to compete on every major national team level offered by U.S. Soccer (U-15, U-17, U-20, Olympic, full Men's National Team and ... that's right, the game everyone loves to ignore ... Futsal). The 33-year-old veteran has won championships both at the college (at the Univ. of Virginia) and pro (D.C. United of MLS) levels and is currently being counted on to help the U.S. Men qualify for the 2002 World Cup after missing out on chances to play in both the 1994 and 1998 World Cups.
Prompt ... Response
Dallas ... Home
Music ... Rock n' roll
Pony Tail ... Goose
Style ... Armani
Bora Milutinovic [MNT coach 1991-95] ... Teacher
Steve Sampson [MNT coach 1995-98] ... No comment
Bruce Arena [current MNT coach] ... Winner, motivator
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2463
3) "AT THE MOVIES" (w/ U-17s Chris Lancos and Gray Griffin)
What to do between meals and training and meals and light out? For any and all of those that have been called into a U.S. National Team camp, the answer is: see a movie.
Perhaps no U.S. team sees more movies than those precocious teenagers from the U.S. Under-17 Men's National team. Strip mall cinema connoisseurs Chris Lancos and Gray Griffin recount summer blockbuster "American Pie 2", a shining beacon of good taste and sophisticated humor. It should be noted that both players were accompanied by an adult (most likely U-17 MNT head coach John Ellinger or goalkeeper coach Peter Mellor) to the viewing of the aforementioned movie.
Chris Lancos, U.S. U-17 defender and native of Belford, N.J.: "Gotta admit it – I'm a big fan of the first American Pie. Great movie – one of the funniest I have seen in a while. So I went in with high hopes for the second one... "
Gray Griffin, U.S. U-17 captain/defender and native of Huntersville, N.C.: "GREAT MOVIE! Without a doubt, you need to see it if you haven't seen it. I've seen it twice... "
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2464
4) "QUERIES AND ANECDOTES" (w/ Julie Foudy)
Off-the-wall Questions and Answers, Queries and Anecdotes from the veteran U.S. WNT captain and jokester herself
Center Circle: Who's your favorite superhero and why?
Julie Foudy: "It has to be Spiderman. Simply because I love the Spiderman theme song and I like to think I move across the field with the speed, agility and grace of a spider. Then I woke up."
CC: What's your biggest brush with greatness, meaning, who's the biggest celebrity you've met?
JF: "Aside from Mia Hamm, who doubles as my caddy for her second job, I'd have to say Socks, the White House feline. Socks was extremely hospitable and chatty, and made my White House experience very enjoyable."
CC: If you were a cartoon character, who would you be? (And why?)
JF: "Scooby Doo, because he always gets to eat."
CC: Is there a better city than San Diego?
JF: "If you can find me a place where the sun shines about 360 days a year and the temperature stays in the range of 65-85 degrees 12 months a year, you have blue water and sandy beaches and the greatest soccer fans in the WUSA, then maybe. But I doubt it."
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2465
5) "BIG WOMAN ON CAMPUS" (w/ Aleisha Cramer)
A monthly "How's School?" report from the campus of one of the many players on U.S. Youth National Teams who finds themselves cramming for exams in between U.S. training camps.
This month, we get a page from the journal of BYU sophomore and Lakewood, Colo., native Aleisha Cramer, the U.S. Under-21 WNT veteran and rising star on the full U.S. Women's National Team.
If you've ever been to Provo, Utah, you probably know that there is not a heck of a lot do. But after over a year at BYU, I am starting to realize that the city and surrounding area has a lot to offer -- you just have to be creative.
Still, most of my time during the college season is spent on the soccer field, traveling to the soccer field or coming back from the soccer field. Oh yeah, our coach Jen Rockwood likes to have a lot of meetings too. Basically, most of my day is taken by soccer and studying.
But despite all the time dedicated to soccer, believe it or not, I do have a social life and I'm really enjoying college. I have a great group of friends and we always have fun. The coolest thing is that we have fun just doing nothing. It's amazing that we can laugh as much as we do just hanging out.
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2466
6) "SUPERSTAR!!!" (w/ Tiffeny Milbrett)
A monthly feature about a U.S. Men's, Women's or Youth National Team player from the U.S. Soccer Communications Department.
This month, we turn the big spotlight on all 5 feet 2 inches of superstar U.S. Women's National Team forward and WUSA Most Valuable Player Tiffeny Milbrett.
"Without Time For a Pit Stop, Forward Tiffeny Milbrett Powers Her Way to WUSA MVP Honors"
Like many young and successful professional athletes, Tiffeny Milbrett owns two cars. And like many who love their cars, they reflect the owner in many ways.
The first, a jet-black 2001 Chevrolet S10 4x4 pickup truck, which Milbrett received for being named the 2000 U.S. Soccer Chevrolet Female Player of the Year. (She upgraded from a four-door. Not her style). The truck represents the ruggedness of the five-foot-two Milbrett, who despite her small stature, has scored 86 career international goals, good for sixth best in world history. It also represents the outdoors woman and adventurer that she is, a small-town Oregon girl who loves nature and travel, and who spent a good part of three years of her life in Japan playing professional soccer.
Her other car is a gleaming, silver 2000 Audi S4 sports car is unique, sleek and does zero-to-60 in nothing flat. With 275 horsepower, it darts past other cars, takes curves like it was on rails and looks good doing it. It can go as fast as 165 miles an hour (Note to Oregon Highway Patrol: Tiffeny has never taken it that fast, as far as you know).
Milbrett drives it like she plays, at a few gears higher than the rest, and hell-bent to get where she is going, which is usually the goal, a journey that is almost always successful.
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2467
7) "MARK THAT CALENDAR" (2001 Lamar Hunt U.S. Open Cup Final)
A stern reminder about an upcoming U.S. Soccer event, whether you plan to check it out live and in person or on the tube.
October has always been known for three things: Fall foliage, Halloween, and the abrupt cancellation of weak new TV shows like "Emeril!" (How bad can 22 minutes of entertainment be?) or another lame "Seinfeld" spinoff (Note to Michael Richards: Kramer's only funny in small doses). But for soccer fans, it's all about championship soccer. For U.S. Soccer, that championship is the 2001 Lamar Hunt U.S. Open Cup, American soccer's oldest tournament.
This year's title match is a first for both the Los Angeles Galaxy and the New England Revolution when it comes to the 88-year-old annual competition, which is open to all teams (amateur or pro) affiliated with U.S. Soccer and has made its mark as a ripe ground for inter-league upsets of David vs. Goliath.
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2468
8) "POINT-COUNTERPOINT" (w/ journalists Jere Longman and Steve Davis)
Every month, we'll pose a question or make a statement about something in soccer that will be debated on by two individuals from the same walk of life. Be it a coach, player, general manager, the two will each give their side of the story, so to speak.
In this case, we've enlisted the help of two soccer journalists. In one corner, wearing a Mia Hamm replica jersey under his shirt and blue blazer ... Jere Longman, who covers international sport and the Olympics for the New York Times and whose extensive coverage of the 1999 Women's World Cup turned into a book about the U.S. Women's National Team entitled "The Girls of Summer." In the other corner, wearing a worn-out replica of the now infamous U.S. Men's "denim star" jersey ... Steve Davis, a general columnist who's also been covering soccer for The Dallas Morning-News for over a decade and has covered the last two Men's World Cups.
This month's question: What event had a greater impact on soccer in the United States: World Cup ‘94 or Women's World Cup ‘99?
Jere Longman, pro-WWC99:
It is indisputable that the 1999 Women's World Cup had a greater impact on soccer in the United States than the 1994 men's World Cup.
The Women's World Cup produced an American champion, and the American public loves a winner. In three weeks, without benefit of lavish pre-game shows or newspaper special sections, the Women's World Cup built a galvanizing momentum. It went from almost zero on the public radar to a consuming moment that drew over 90,000 fans to the final match against China at the Rose Bowl and attracted 40 million television viewers...
Steve Davis, pro-WC94:
Back in the early 1990s, soccer was like the puny kid in junior high: lots of potential, plenty of good things ahead ... but still the last one picked for the team and having some trouble fitting in.
World Cup 1994 changed all that. It was international soccer's coming out party in the United States. A land that respects the big event, the colossal show, began to see soccer as a sport it could learn to like.
For soccer fans, it was their moment in the sun. More importantly in the big picture, Americans who wouldn't know a corner kick from a corner market tuned in to see what the fuss was about. Until the United States wins a World Cup, nothing else will be more influential in elevating the sport's domestic profile.
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2469
9) "FROM THE BLEACHERS" (w/ PHILIPS Chant Contest winner Randal Bird)
A monthly look at the fans behind the U.S. National Teams. In this case, one special fan by the name of Randal Bird has gone and made himself part of U.S. Soccer history as the author of the contest-winning Philips/U.S. Soccer chant that will hopefully be a part of international matches for years to come.
GOALS! GOALS! GOALS! Chanting to Your Heart's Content
When Philips Electronics joined U.S. Soccer in a partnership to help promote and develop the sport of soccer in the United States last June, their first order of business was launching a unique "chant" contest to challenge U.S. Soccer fans from all over the globe to log on to www.ussoccer.com and begin chanting to their hearts content.
Of course, choosing a winning chant for which hundreds of fans would eventually be asked to latch on to as their own was never going to be easy. Fans come in all different shapes and sizes. And so do stadium chants.
>From the long and melodic melodies of "We all root for the red soccer team, the red soccer team, the red soccer team" (as sung to the lyrics of Yellow Submarine) to the less melodic but rhythmic eloquence of a European chant like "Stand up, if you hate Man U. ... Stand up, if you hate Man U.", they each have their own charm.
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2470
10) "YOU DON'T KNOW JACK (MARSHALL)" (U.S. Open Cup history)
Think you know your U.S. Soccer trivia? Well...try us. We'll see how far back your knowledge of Team USA and U.S. Soccer extends. And who the heck is Jack Marshall? Even the trivia buffs in the U.S. Soccer Communications Department would be hard pressed to tell you that one Jack Marshall received his one and only cap way back in 1926. Okay, that was pretty much impossible. They get easier. We give you four questions each month, 1 to 4, easy to hard.
Answer #1 correctly, and it's safe to assume you haven't been stuck in a cave for the last five years.
Answer #2 correctly, and you already know more about soccer than any anchor from "SportsCenter".
Answer #3 correctly, you're probably pretty proud of yourself. Don't be. Try Question #4.
If you answered #4 correctly, you are either N.Y. Daily News soccer writer Michael Lewis or you own a U.S. Soccer Media Guide.
This month's trivia has to do with the annual, upset-friendly, "knock-out" tournament known as the Lamar Hunt U.S. Open Cup.
Questions:
Q1: (Difficulty level 1 of 4) True or False: The U.S. Open Cup is the oldest soccer competition in the United States.
Q2: (2 of 4) Who was the first MLS team to win the U.S. Open Cup?
Q3: (3 of 4) Who are the two United Soccer Leagues to team to win the U.S. Open Cup in the 90's, and what year did each team take the crown?
Q4: (4 of 4) What year did the Open Cup competition not have an outright winner?
For answers see: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2471
----------------------------------------------------------------------------
To end your membership in ussoccerfan.com, please visit http://membership.ussoccer.com/member/unsubscribe.sps?msmid=1 and fill out an unsubscribe request. Thank you for supporting U.S. Soccer!
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arnold-j/deleted_items/480.
|
subject: The Daily Quote
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ET Symbol Last Change % Chg [IMAGE] GK1.61[IMAGE]0.5045.04%[IMAGE] MTEX2=
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AGE]3.5828.70%[IMAGE] AFFX27.26[IMAGE]5.7326.61%[IMAGE] FCGI11.52[IMAGE]2.5=
228.00%[IMAGE]NYSE & AMEX quotes delayed at least 20 min. At least 15 min. =
otherwise.- - - - -Personalize The Daily Quote: [IMAGE][IMAGE]Question of t=
he Day! Q. Don Masters writes, "What are technical indicators and what do t=
hey mean?"Technical indicators are tools that map the activity of a stock p=
rice in various........ MORE [IMAGE] Do you have a financial question? Ask=
our editor - - - - - VIEW Archive [IMAGE] [IMAGE] [IMAGE]=09 =09=09=
=09=09[IMAGE] [IMAGE] Market Outlook Bear Jamboree By:Adam Martin =
Stocks are mixed with less than two hours to go in the session, with the D=
JIA still shallow in the red, and the NASDAQ showing some gains. Trader co=
nfidence took a beating after a flurry of weak economic data and earnings, =
but there is hope that economic stimulus and low interest rates will turn t=
hings around. The news from the economic front has been a defining force t=
oday, as durable goods orders fell a surprising 8.5%, significantly steeper=
than the 1.3% forecast by analysts. The Labor Department's Unemployment C=
ost Index rose 1% in the third quarter, coming in above the 0.9% forecast, =
and sales of existing homes came in below analyst expectations as well. So=
me analysts see recession in numbers like those, but recession or no, there=
's clearly downward pressure on the market. Nonetheless, traders are looki=
ng for positive things in the future, and seem to see buying opportunities =
today. - - - - - MORE Breaking News [IMAGE] [IMAGE] [IMAGE]=09[IMAGE]=
=09
=09 [IMAGE] Today's Feature - Thursday Risk Remains So Get Divers=
ified So you think the worst is over? Now I'm not saying everyone (or even =
most) should sell. But I am suggesting that if over the last year or so as =
the market dropped you did some soul searching and you now finally realize =
both that there is risk in the stock market and that you can't bear as much=
risk in your portfolio as you have, don't just assume it went away over th=
e last 31 days. More [IMAGE] [IMAGE]=09 =09 [IMAGE] Stocks to Wat=
ch Goodrich posts profit, to cut jobs, close plants Aerospace and indus=
trial products company Goodrich Corp. (NYSE:GR) on Thursday posted an incre=
ase in quarterly profits but said it plans to cut 2,400 jobs and close 16 f=
acilities in a bid to counter the effect of a crisis in the commercial air =
transport industry. USX shareholders ok split into steel, energy USX Corp.=
said on Thursday that the majority of its U.S. Steel Group (NYSE:X) and it=
s Marathon Group (NYSE:MRO) shareholders voted in favor of its reorganizati=
on plan to separate into a steel company and an energy company. Affymetrix,=
Hyseq settle legal dispute over patents Genetics technology firm Affymetr=
ix Inc. (NASDAQ:AFFX) on Thursday said it has settled its legal dispute wi=
th biotechnology firm Hyseq Inc. (NASDAQ:HYSQ) over certain patents and lic=
enses owned by each company. Estee Lauder first-quarter earnings rise Be=
auty products giant Estee Lauder Cos. Inc. (NYSE:EL) on Thursday reported a=
slight rise in fiscal first-quarter earnings, and said it was comfortable =
with Wall Street's fiscal 2002 estimates despite the Sept. 11 attacks which=
have added to a weakening retail environment. Dell CEO sees consumer deman=
d driving sales up Dell Computer Corp. (NASDAQ:DELL) Chief Executive Micha=
el Dell on Thursday said he expects consumer demand for personal computers =
to drive the company's sales higher in its fiscal fourth quarter. - - - - -=
MORE Breaking News [IMAGE] [IMAGE] [IMAGE]=09[IMAGE]=09
=09=09=09 [IMAGE] Your Watch List News GK News GenTek Elects New =
Vice President and Chief Financial Officer; Declares Quarterly Dividend PR=
Newswire: 09/20/2001 18:01 ET KRONE(R) Public Networks Product Solutions W=
ins Renewal of Major Supply Contract with Verizon PR Newswire: 08/29/2001 =
14:20 ET CON-X and Teradyne Complete Interoperability Testing PR Newswire:=
08/20/2001 17:13 ET - - - - - MORE [IMAGE] MTEX News MANNATECH INC FILES=
FORM 4 (NASDAQ:MTEX) EDGAR Online: 09/04/2001 15:04 ET Mannatech, Inc. An=
nounces Board Resignation BusinessWire: 08/27/2001 20:18 ET MANNATECH INC =
FILES FORM 8-K (NASDAQ:MTEX) EDGAR Online: 08/22/2001 14:54 ET - - - - - M=
ORE [IMAGE] SATC News SatCon Granted U.S. Patent for Biological and Chemi=
cal Detection System; Company Completes Product Validation Phase, Sets Sigh=
ts on New Opportunities BusinessWire: 10/25/2001 08:08 ET SatCon Receives =
$2.0 Million Order for Smart Digital Controllers BusinessWire: 10/16/2001 =
07:27 ET SATCON TECHNOLOGY CORP FILES FORM SC 13D/A (*US:SATC) EDGAR Onlin=
e: 10/05/2001 16:31 ET - - - - - MORE [IMAGE] GETY News UPDATE 1-Getty Im=
ages loss shrinks, sales fall Reuters: 10/24/2001 17:20 ET TABLE - Getty I=
mages (NASDAQ:GETY) Q3 shr loss Reuters: 10/24/2001 16:58 ET Getty Images =
Q3 posts smaller-than-expected loss Reuters: 10/24/2001 16:27 ET - - - - -=
MORE [IMAGE] AFFX News Video:Market@Midday: Exchanges take a hit ON24: =
10/25/2001 12:51 ET Audio:Market@Midday: Exchanges take a hit ON24: 10/25/=
2001 12:51 ET Audio:ON The Move: Merrill upgrades Genentech and Affymetrix,=
lowers Celera ON24: 10/25/2001 11:36 ET - - - - - MORE [IMAGE] FCGI New=
s First Consulting Group Reports Third Quarter 2001 Results BusinessWire: =
10/25/2001 07:06 ET First Consulting Group and CuraGen Corp. Automate Key S=
teps in FDA Submission Process; Innovative Document Management System Strea=
mlines FDA Paperwork BusinessWire: 10/15/2001 13:50 ET First Consulting Gr=
oup and Aventis Pharmaceuticals to Build Worldwide R?Content Management Sys=
tem; Project Standardizes Company's Management of Critical R?Knowledge Bus=
inessWire: 10/11/2001 14:39 ET - - - - - MORE [IMAGE] [IMAGE]=09 =09
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arnold-j/deleted_items/481.
|
subject: Weekend Outage Report for 10-26-01 through 10-28-01
content: ------------------------------------------------------------------------------------------------------
W E E K E N D S Y S T E M S A V A I L A B I L I T Y
F O R
October 26, 2001 5:00pm through October 29, 2001 12:00am
------------------------------------------------------------------------------------------------------
3 ALLEN CENTER POWER OUTAGE:
Time: Sat 10/27/2001 at 4:00:00 PM CT thru Sat 10/27/2001 at 8:00:00 PM CT
Sat 10/27/2001 at 2:00:00 PM PT thru Sat 10/27/2001 at 6:00:00 PM PT
Sat 10/27/2001 at 10:00:00 PM London thru Sun 10/28/2001 at 2:00:00 AM London
From 4:00 - 8:00 p.m., Trizechan Properties has scheduled a shutdown of all electrical service at 3 Allen Center. Enron Network Services will power down the 3AC network infrastructure between 3:30-4:00. There will be no 3 Allen Center network access during the electrical maintenance and the outage will continue until ENS is able to power up all of the networking devices.
All 3AC and 2AC employees will have no telephone or voicemail service during outage period. When power is restored to building, systems will be powered back up and telco services tested for dial tone and connectivity.
If you need access to 3AC anytime that Saturday, you will need to contact Trizechan Properties beforehand with your security information (Jael Olson at 713-336-2300). Anyone who attempts to enter the building on Saturday that is not on the list will be denied access.
SCHEDULED SYSTEM OUTAGES:
ARDMORE DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.
AZURIX: No Scheduled Outages.
EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.
EDI SERVER:
Impact: CORP
Time: Sat 10/27/2001 at 11:00:00 PM CT thru Sun 10/28/2001 at 4:00:00 AM CT
Sat 10/27/2001 at 9:00:00 PM PT thru Sun 10/28/2001 at 2:00:00 AM PT
Sun 10/28/2001 at 5:00:00 AM London thru Sun 10/28/2001 at 10:00:00 AM London
Outage: EDI_QA disk re-org
Environments Impacted: EES
Purpose: Improve disk utilization for future expansion.
Backout: Assign back to original disks.
Contact(s): John Kratzer 713-345-7672
EES:
Impact: EES
Time: Sat 10/27/2001 at 6:00:00 PM CT thru Sun 10/28/2001 at 12:00:00 AM CT
Sat 10/27/2001 at 4:00:00 PM PT thru Sat 10/27/2001 at 10:00:00 PM PT
Sun 10/28/2001 at 12:00:00 AM London thru Sun 10/28/2001 at 6:00:00 AM London
Outage: Migrate EESHOU-FS1to SAN
Environments Impacted: EES
Purpose: New Cluster server is on SAN and SAN backups
This will provide better performance, server redundancy, and backups should complete without problems.
Backout: Take new server offline,
Bring up old servers
change users profiles back to original settings.
Contact(s): Roderic H Gerlach 713-345-3077
EI:
Impact: All servers in 3AC floors 17 and 35: List provided below
Time: Sat 10/27/2001 at 3:00:00 PM CT thru Sat 10/27/2001 at 9:00:00 PM CT
Sat 10/27/2001 at 1:00:00 PM PT thru Sat 10/27/2001 at 7:00:00 PM PT
Sat 10/27/2001 at 9:00:00 PM London thru Sun 10/28/2001 at 3:00:00 AM London
Outage: 3AC list of Server affected by outage
Environments Impacted: EI
Purpose: There will be a complete power outage for the entire Three Allen Center Building.
Backout: No back out plan.
Contact(s): Tino Valor 713-853-7767
ENRON CENTER SOUTH DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages
ENRON NORTH AMERICAN LANS: No Scheduled Outages.
FIELD SERVICES: No Scheduled Outages.
INTERNET: No Scheduled Outages.
MESSAGING: No Scheduled Outages.
MARKET DATA: No Scheduled Outages.
NT: No Scheduled Outages.
OS/2: No Scheduled Outages.
OTHER SYSTEMS:
Impact: CORP
Time: Fri 10/26/2001 at 7:00:00 PM CT thru Fri 10/26/2001 at 9:00:00 PM CT
Fri 10/26/2001 at 5:00:00 PM PT thru Fri 10/26/2001 at 7:00:00 PM PT
Sat 10/27/2001 at 1:00:00 AM London thru Sat 10/27/2001 at 3:00:00 AM London
Outage: Reboot HR-DB-4 to add new disks
Environments Impacted: All
Purpose: We need to remove the old arrays because of reliability issues.
Backout: Connect the old arrays back to DB-4 and reboot.
Contact(s): Brandon Bangerter 713-345-4904
Mark Calkin 713-345-7831
Raj Perubhatla 713-345-8016 281-788-9307
Impact: CORP
Time: Sun 10/28/2001 at 1:45:00 AM CT thru Sun 10/28/2001 at 2:15:00 AM CT
Sat 10/27/2001 at 11:45:00 PM PT thru Sun 10/28/2001 at 12:15:00 AM PT
Sun 10/28/2001 at 7:45:00 AM London thru Sun 10/28/2001 at 8:15:00 AM London
Outage: sysAdmiral Outage
Environments Impacted: Corp
Purpose: There is a possible bug in sysAdmiral when clocks adjust for daylight saving time, This is a precaution to take the system own during this time to prevent any possible problems that may occur.
Backout: We are only taking the services down on these machines no patches or upgrades, do not expect to see any problems. We expect the software company to be online provided we see any problems when we bring the systems back up.
Contact(s): Ryan Brennan 713-853-4545
Brian Lindsay 713-853-6225
Bruce Smith 713-853-6551
SITARA: No Scheduled Outages.
SUN/OSS SYSTEM: No Scheduled Outages.
TELEPHONY:
Impact:
Time: Sat 10/27/2001 at 4:00:00 PM CT thru Sat 10/27/2001 at 8:00:00 PM CT
Sat 10/27/2001 at 2:00:00 PM PT thru Sat 10/27/2001 at 6:00:00 PM PT
Sat 10/27/2001 at 10:00:00 PM London thru Sun 10/28/2001 at 2:00:00 AM London
Outage: Power Down Lucent Switch & Voicemail @ 3AC
Environments Impacted: All
Purpose: Scheduled power outage by 3AC Building Management.
Backout:
Contact(s): Cynthia Siniard 713-853-0558
TERMINAL SERVER: No Scheduled Outages.
UNIFY: No Scheduled Outages.
----------------------------------------------------------------------------------------------------------------------------
FOR ASSISTANCE
(713) 853-1411 Enron Resolution Center
Specific Help:
Information Risk Management (713) 853-5536
SAP/ISC (713) 345-4727
Unify On-Call (713) 284-3757 [Pager]
Sitara On-Call (713) 288-0101 [Pager]
RUS/GOPS/GeoTools/APRS (713) 639-9726 [Pager]
OSS/UA4/TARP (713) 285-3165 [Pager]
CPR (713) 284-4175 [Pager]
EDI Support (713) 327-3893 [Pager]
EES Help Desk (713)853-9797 OR (888)853-9797
TDS -Trader Decision Support On-Call (713) 327-6032 [Pager]
|
Houston Outage Report@ENRON <??SHouston Outage Report@ENRON>
|
|
arnold-j/deleted_items/482.
|
subject: Enron Mentions
content: Fitch Puts Enron On Rating Watch Negative
Bloomberg, 10/25/01
STOCKWATCH Enron higher after dismissing CFO Fastow
AFX News, 10/25/01
DJ Concerned Energy Cos Make Few Changes In Enron Dealings
2001-10-25 14:13 (New York)
Calif Guarantees Allow Williams To Book Power Revenues
Dow Jones Energy Service, 10/25/01
Stocks Expected to Open Lower, Hurt By Weak Economic News
Dow Jones Business News, 10/25/01
Kaplan Fox Seeks To Recover Losses For Investors Who Purchased E
Bloomberg, 10/25/01
Enron CNBC: Squawk Box,
10/25/01
Fitch Puts Enron On Rating Watch Negative
2001-10-25 13:49 (New York)
Fitch Puts Enron On Rating Watch Negative
Fitch-NY-October 25, 2001: Fitch places the following Enron
securities on Rating Watch Negative: senior unsecured debt
`BBB+'; subordinated debt `BBB'; preferred stock `BBB-`;
and commercial paper `F2'. Pipeline subsidiary `A-` rated
senior unsecured debt at Northern Natural Gas Co. and
Transwestern Pipeline Co., are also placed on Rating Watch
Negative.
The rating action primarily relates to the negative capital
market reaction to recent disclosures by the company. The
loss of investor and counterparty confidence, if it
continues, would impair Enron's financial flexibility and
access to capital markets, therefore, impacting its ability
to conduct its business. On Oct. 16, 2001, Enron announced
a $1 billion after-tax charge to earnings to be taken in
the third quarter of 2001 and a reduction of balance sheet
equity by $1.2 billion relating to the unwinding of
structured transactions. Since that time, there have been
several damaging news reports on the company and its
management. More importantly, investors have voiced
concerns. Enron's common stock price has plummeted and
spreads on its debt have widened.
The company has attempted to quell rumors and has publicly
stated that it has adequate liquidity to conduct its
business. Approximately $1.5 billion of unused liquidity is
available under committed bank lines.
An additional concern is that certain structured
transactions of the company including Marlin Water Trust II
and Osprey could unwind. While various sources of repayment
exist, such as the sale or liquidation of underlying
assets, or an equity offering, primary credit support is
derived from the Enron obligation to remarket mandatorily
convertible preferred stock if an amount sufficient to
repay the notes has not been deposited with the trustee 120
days prior to the maturity date or upon a note trigger
event. In the event that the issuance of the preferred
stock yields less than the amount required to redeem the
senior notes in either case, Enron is required to deliver
additional shares. If Enron cannot or does not deliver on
its obligation, then the amount of the deficiency becomes a
payment obligation of Enron, representing a general
unsecured claim. While trigger events include a downgrade
of Enron's senior unsecured debt below investment grade by
one of the major rating agencies in conjunction with
specified declines in Enron's closing stock price over
three consecutive trading days, Enron would have a
forebearance period of 60 days as long as an attempt was
being made to register the shares. The total amount of
Marlin and Osprey debt is approximately $3.2 billion. Enron
has not verified that the underlying assets have adequate
market value to fully pay down the associated debt.
While capital market uncertainties have escalated, Fitch
has no information to indicate that there are any
fundamental problems with Enron's core wholesale, retail,
and pipeline businesses. Fitch expects to be in contact
with the company on a continuing basis to both monitor
ongoing events and address strategic, longer-term issues.
STOCKWATCH Enron higher after dismissing CFO Fastow
10/25/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Share of Enron were higher in opening trade, after the company dismissed its chief financial officer, Andrew Fastow, due to his past involvement in running two partnerships, in which Enron had invested, dealers said.
At 9.56 am, Enron was up 1.13 usd, or 6.95 pct, at 17.55. The DJIA was down 138.60 points at 9,207.52, the S&P 500 index was down 15.95 pts at 1,069.00 and the Nasdaq composite down 39.02 at 1,692.52.
Enron said it named Jeff McMahon CFO to replace Fastow, after announcing Monday that the Securities and Exchange Commission is looking into the Fastow-related transactions.
"In my continued discussions with the financial community, it became clear to me that restoring investor confidence would require us to replace Andy as CFO," said chief executive Kenneth Lay in a statement.
Enron shares have fallen sharply in recent days on concerns over financial transactions made with the two partnerships, LJM Cayman LP and LJM2 Co-Investment LP, which analysts said could affect future earnings and which have prompted class action suits against the company.
McMahon, who had been serving as chairman and CEO of Enron's Industrial Markets group, had quit his job as treasurer last year, after voicing concerns within the company about Fastow's role in running the two partnerships, according to the Wall Street Journal.
This morning, Salomon Smith Barney analyst Raymond Niles downgraded Enron to "buy- speculative," from "buy-high risk", to reflect his concerns that "lingering uncertainty over financial practices may begin to impair Enron's commercial operations."
"This is the least likely outcome, in our view, but one whose likelihood has increased over the last week as questions continue to be asked," he said.
ng/lj For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
=DJ Concerned Energy Cos Make Few Changes In Enron Dealings
2001-10-25 14:13 (New York)
By Mark Golden, Kristen McNamara, Jon Kamp and John Edmiston
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Energy trading companies have concerns about the credit
quality of troubled Enron Corp. (ENE), but they have made almost no changes in
policies concerning the top trader of North American power and gas, the
companies said Thursday.
The concerns have arisen because Enron, which accounts for about a quarter of
the trade in the country's power and gas markets, has seen its share price fall
by a third this week due to uncertainties about its extremely complex financial
structure.
Moody's has put Enron's credit on watch for possible downgrade, and some of
the company's debt is trading like junk bonds in the secondary market this
week.
"We have made no changes to our credit policy concerning Enron," said John
Sousa, chief spokesmann for Dynegy Inc. (DYN). "It's business as usual."
Williams Cos. (WMB) spokesman Jim Gipson said that his company, too, has made
no changes and has no concerns about Enron's credit. Another Top 10 power and
gas trading company, Aquila (ILA), has also left Enron credit unchanged.
Other companies expressed concern, though they've taken little if any action.
"Like everyone else in the marketplace, we're proceeding with caution," said
Lora Kinner, director of credit for Tractebel Energy Marketing, the North
American subsidiary of the Belgian company Tractebel S.A.
Kinner said the company is just looking for more information and doesn't
expect to make any drastic changes.
Calif Guarantees Allow Williams To Book Power Revenues
By Andrew Dowell
Of DOW JONES NEWSWIRES
10/25/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Clarifications by California as to what electricity transactions the state will back enabled Williams Cos. (WMB) to book $180 million in power sales from the previous period as third-quarter revenues, the company said Thursday.
The revenues came from power Williams sold through the California Independent System Operator, which runs the state's wholesale power market and clears and settles transactions.
The state of California has paid more than $11 billion for power bought directly from suppliers, but has yet to pay for any ISO power since it took over the job of buying power for the state's ailing utilities in mid-January. Two weeks ago, however, the state made clear for the first time which ISO transactions it would back.
"It's that fact that has allowed us for the first time to recognize dollars from sales to the California ISO," Williams Chief Operating Officer Steven Malcolm said on a conference call Wednesday.
Williams reported third-quarter net income of $221.3 million on revenues of $2.81 billion, up from $121.1 million on revenues of $2.33 billion in the same period the year before.
Williams is now in talks with California to secure payment for its ISO sales. The process is complicated by the state's role as guarantor of transactions undertaken on behalf of the utilities, which aren't creditworthy enough to buy power for themselves. The ISO didn't envision third-party guarantors when it set up its settlement process, and state accounting rules require more detailed bills than those sent out by the ISO each month, state power officials have said.
The state says it has set aside $1.2 billion to cover ISO transactions.
As reported, suppliers including Williams had charged the state with deliberately muddling the repayment issue to keep power flowing for free.
Willing To Renegotiate
Separately, Williams' officers also said the company was willing to discuss reworking its long-term contracts with California, provided the result benefited both parties.
California Gov. Gray Davis is under heavy fire for having locked the state into contracts running as long as 20 years at prices negotiated at the peak of a market that has since collapsed.
Both sides could potentially benefit from changes to the length of the term of the contracts or the specifics of power-supply obligations - perhaps freeing up supply that Williams thinks it could get more money for on the spot market, Malcolm said.
"We're always willing to sit down with a customer," Malcolm said.
Williams hasn't been approached by the state to renegotiate the contracts, Malcolm said.
Any attempt by California to force through one-sided changes is unlikely and could backfire for the state by disrupting plans for new power plants, he said.
"To the extent contracts are changed, financing is going to go away," he said.
Downplaying Enron Opportunities
Williams downplayed its ability to capitalize on the recent troubles of market-leader Enron Corp. (ENE), saying it focuses on large, long-term structured deals, not the high-volume, physical-market transactions that Enron dominates, Malcolm said.
Also, TradeSpark - the Internet-based energy exchange in which Williams is a partner - is limited for now in its ability to expand and take volume from Enron's proprietary system EnronOnline because of the horrific losses operator Cantor Fitzgerald (X.CFZ) suffered in the attacks on the World Trade Center.
"That's interrupted the rapid growth we were seeing," Williams Chief Executive Keith Bailey said on the call.
Enron, which accounts for about a quarter of the trade in the country's power and gas markets and which makes a market for those commodities on EnronOnline, has seen its share price fall by a third this week due to uncertainties about its extremely complex financial structure.
Those concerns have raised questions about the business model of EnronOnline, a platform on which Enron is the counterparty in all trades. Those concerns could eventually boost volume on neutral exchanges like TradeSpark.
"We continue to believe in the neutral platform that TradeSpark offers," Malcolm said.
TradeSpark LP was formed by eSpeed Inc. (ESPD), Cantor Fitzgerald (X.CFZ), Shell (RD) unit Coral Energy, Dominion (D), Koch Energy Trading Inc., TXU Corp.'s (TXU) TXU Energy unit and Williams Cos.' Williams Energy Marketing & Trading Co.
-By Andrew Dowell, Dow Jones Newswires; 201-938-4430; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Stocks Expected to Open Lower, Hurt By Weak Economic News
10/25/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
A Wall Street Journal Online News Roundup
Stocks are expected to open with losses Thursday, weighed down by disappointing U.S. economic news and the European Central Bank's decision to leave interest rates unchanged.
About an hour before the New York Stock Exchange opened, futures on the Standard & Poor's 500-stock index were sharply lower, suggesting that the Dow Jones Industrial Average will post a 94-point loss at the opening bell.
In one of a trio of negative economic reports, the Commerce Department said orders for durable goods, or products expected to last more than three years, tumbled 8.5% in September. That was a much steeper drop than the 0.9% decline forecast by economists surveyed by Thomson Global Markets.
Meanwhile, the Labor Department reported that the number of Americans filing new claims for state unemployment insurance rose to 504,000 for the week ended Oct. 20. That was more than the 500,000 jobless claims expected by economists.
The Labor Department also said that the employment-cost index rose 1% in the third quarter, slightly more than expected. The indicator measures changes in compensation costs, including wages and salaries, as well as costs for employee benefits.
Later, at 10 a.m. EDT, the National Association of Realtors is expected to say that 5.26 million existing homes were sold last month, down from the 5.5 million sold in August.
Prior to release of the economic news, S&P futures had pointed to a weaker opening on Wall Street, after the ECB left rates alone despite growing political pressure for another rate cut to help the stumbling European economy.
In addition to pouring over Thursday's economic reports, investors will spend much of the session sorting through a mountain of earnings reports, said Peter Cardillo, director of research at Westfalia Investments.
Among companies that announced quarterly earnings so far, Dow Chemical said third-quarter net income plunged 84%, hurt by weak demand, substantial price declines and a slew of charges mostly related to acquisition expenses and restructuring at Dow Corning.
Among other stocks to watch, Enron on Wednesday replaced its finance chief, Andrew Fastow, capping a tumultuous day in which the Houston powerhouse saw its stock price continue to fall sharply.
States suing Microsoft are hiring one of the nation's top trial lawyers, signaling they may seek a harsher antitrust remedy than the White House. Meanwhile, the software giant's Windows XP formally makes its debut Thursday.
In key overseas markets, stocks were mixed. London's Financial Times-Stock Exchange 100-Share Index was down 1.2% in intraday trading, while Frankfurt's DAX was 0.9% lower. Earlier in the day, Japan's Nikkei 225 average closed with a gain of 0.7%, and Hong Kong's Hang Seng Index rose 0.2%.
In Wednesday's session, Wall Street continued to shrug off disappointing earnings news, and focused instead on hopes that low interest rates and the government's economic-stimulus program will produce a recovery.
Technology issues saw much of the buying, with the Nasdaq Composite Index rising 27.10 points, or 1.6%, to 1731.54. The Dow industrials inched 5.54 points, or 0.1%, higher to close at 9345.62, despite substantial losses in two of its components, Eastman Kodak and AT&T, which issued weak outlooks.
In major U.S. market action Wednesday:
Major stock indexes advanced. But on the Big Board, where 1.34 billion shares traded, 1,374 stocks rose and 1,743 fell. On the Nasdaq, 1.89 billion shares changed hands.
Bonds gained. The 10-year Treasury note rose 13/32, or $4.0625 for each $1,000 invested. The yield, which moves inversely to price, fell to 4.588%. The 30-year bond was up 23/32 to yield 5.330%. Early Thursday, the 10-year note was up 10/32 to yield 4.553% while the long bond was 17/32 higher, yielding 5.303%.
The dollar was mixed. Late in New York, it traded at 122.87 yen, up from 122.68, while the euro rose against the dollar to 89.35 U.S. cents from 89.07. Early Thursday in New York, the dollar bought 123.17 yen and traded at 88.27 cents to the euro.
For continuously updated news from The Wall Street Journal, see WSJ.com at http://wsj.com.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Kaplan Fox Seeks To Recover Losses For Investors Who Purchased E
2001-10-25 12:07 (New York)
Kaplan Fox Seeks To Recover Losses For Investors Who Purchased Enron
Corp. Common Stock
NEW YORK, NY -- (INTERNET WIRE) -- 10/25/01 -- Kaplan Fox
(kaplanfox.com) has filed a class action against Enron Corp. and
certain of the Company's officers and directors in the United States
District Court for the Southern District of Texas. The suit is
brought on behalf of all persons or entities who purchased the common
stock of Enron Corporation ("Enron") (NYSE: ENE) between January 18,
2000 and October 17, 2001, inclusive (the "Class Period").
The complaint charges Enron Corp. and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
The complaint alleges that during the Class Period, defendants
engaged in asset and securities sales to closely related affiliates
and interested parties, which disguised Enron's true financial
position. Many of the details of these transactions were hidden from
the public. Defendants used these asset sales to falsely improve
Enron's balance sheet, thereby maintaining Enron shares at an
artificially inflated price. Certain Enron executives, who held
positions in the affiliates that presented clear conflicts of
interest, reaped millions of dollars in personal gains from these
transactions.
The complaint further alleges that during the Class Period, Defendants
made misleading statements regarding the potential value of Enron's
Broadband business, in order to artificially boost Enron's share
price. With knowledge that Enron's Broadband business would never
post a profit and was seriously overvalued, Defendants continued to
make misleading statements about the Broadband business in order to
maintain the share price at its artificially inflated levels.
Defendants used the artificially inflated value of Enron's Broadband
business to hedge against, in order to gain millions of dollars in
financing. Defendants failed to disclose the risk of these financing
arrangements. Defendants hid the true nature of Enron's earnings,
its hedging, its businesses, and the correct state of Enron's
finances from its investors and the market, further artificially
inflating Enron's share price. While the stock was artificially
inflated for the above reasons, Enron executives engaged in extensive
insider trading, gaining personal proceeds of approximately $482
million during the Class Period, before the public became aware of
the above practices.
Plaintiff seeks to recover damages on behalf of the Class and is
represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices
in New York, San Francisco, Chicago and New Jersey has many years of
experience in prosecuting investor class actions and actions
involving financial fraud. For more information about Kaplan Fox &
Kilsheimer LLP, you may visit our website at www.kaplanfox.com
If you are a member of the Class, you may move the court no later than
December 21, 2001 to serve as a lead plaintiff for the Class. In
order to serve as a lead plaintiff, you must meet certain legal
requirements.
If you have any questions about this Notice, the action, your rights,
or your interests, please e-mail us at [email protected] or contact:
Kaplan Fox & Kilsheimer LLP - 805 Third Avenue, 22nd Floor - New York,
NY 10022
Kaplan Fox & Kilsheimer LLP - 100 Pine Street, 26th Floor - San
Francisco, CA 94111
Contact: Frederic S. Fox, Esq., Kaplan Fox & Kilsheimer LLP
Phone: 800-290-1952
Fax: 212-687-7714
Email: [email protected]
Date October 25, 2001
Time 07:00 AM - 08:00 AM
Station CNBC
Location Network
Program The Squawk Box
Mark Haines, co-anchor:
Joe Kernen, what's going on?
Joe Kernen, co-anchor:
We've got to shift gears into this Enron situation which
has just been--you've been talking about it quite a bit,
David--how could you not talk about it? Seventy-six
million shares yesterday, down fifty percent in the last
two weeks. This is a company with--what?--a hundred
million in revenues.
James Cramer, guest market commentator:
Maybe.
Kernen: Yeah, right. Anyone who does any trading in
energy apparently, you know, uses Enron Online, so anything
that destabilizes Enron to a great extent could destabilize
the whole energy trading arena and...
Cramer: Go ahead, say it! Say what you're thinking! No
one has said it yet. We know the truth. We believe that
Enron caused a national short squeeze. They knew every
single number in this gas situation. They wrecked the
California utility system and profited from it. That's my
bet. My bet that this--they had--look, they were the
market maker. Imagine if Instinet knew what you were going
to be buying and took it ahead of you. I think they
cornered the market for electricity for about four months,
made a huge fortune and now the company is unraveling and
when someone--when the Justice Department gets in there
we're going to discover this.
Kernen: Let's see what happened...
Haines: Now, wait a second...
David Faber, co-anchor:
Whoa, whoa, whoa! The Justice Department, Jim? Now, is
that new? Is that something--
Cramer: No, that would be, if I were a prosecutor,
something...
Faber: OK, so they are not being investigated?
Cramer: Well, no, I'm actually being a little forward
thinking.
Kernen: The SEC wants documents about the limited
partnership transactions of Mr.--
Faber: Which is very different from what Jim is talking
about.
Cramer: No, I'm saying that this is what, if I were an
enterprising prosecutor, I would say, Did we have a
nationwide short squeeze in electricity caused by one
company that had access to all the screens and knew exactly
what was happening with the electricity market which then
wrecked the California utility system, cost the consumer
billions of dollars, and is now being hushed up?
Kernen: Well, let's talk about the actual news. Here's
yesterday's trading--
Haines: Wait a minute.
Kernen: Well, I just want to say that the guy is gone now.
That's the new news here. Did you read--did you know that
Fastow, after four--
Faber: Late yesterday.
Kernen: Yeah, after four o'clock, Fastow is gone. What's
interesting--
Faber: He's the CFO--
Kernen: But he's a new CFO.
Faber: --who benefitted personally from some of these
off balance sheet partnerships.
Cramer: Mark, you know, I'm not on thin ice here, I'm not
on thin ice.
Haines: I just want to make sure we understand that this
is your theory.
Cramer: This is my theory.
Haines: OK.
Cramer: It is just a theory. It is my opinion. But I
think we've got to find out more about that short squeeze
that occurred.
Haines: OK.
Cramer: We need to find out whether it was orchestrated.
Kernen: The new CFO might help regain some credibility for
the company because he was the old treasurer who left that
position a year or so ago because of some disagreements
with how Mr. Fastow was doing business apparently. So now
he's back as CFO and we'll whether that calms the market
down.
Faber: Well, what they need to do-- Joe, they need to come
clean. I mean, that is what all the investors in Enron and
those who've left the company as investors over this last
week have wanted. Let's see everything; be as transparent
as you possibly can be; tell us exactly what we need to
know. And as much as they need to come clean with their
investors, they need to come clean with their trading
counterparties because that is really what people are
concerned about.
Kernen: Why is the credit worthiness issue such a big
deal? Anyone who does trading with them, if their credit
worthiness were to go--if their credit rating were to go
down, how would that affect energy trading?
Faber: Well, you want to know that they're going to be
there on the other side and make good on the trades.
Kernen: I guess you would, wouldn't you?
Faber: Right. Not that they aren't, but why would you--if
you can trade with seven other guys--seven other companies,
maybe you cut back a little bit on your exposure there.
Kernen: Now, why would--
Faber: And that would hurt their core business.
Kernen: Why are people expecting some type of action from
the credit agencies, not because of the stock price, right?
Because of something that could unravel--
Faber: Because of something related to these liabilities
they may have--
Kernen: That they don't know about at this point.
Faber: --that they may have with regard to funding some of
these off balance sheet partnerships that they backstopped
in terms of borrowing that went on at the project level at
the off balance sheet partnership. Will it be a liability?
They don't know. But that's one of the reasons--
Kernen: We're talking hundreds of millions or billions?
Faber: They don't know.
Kernen: But there were billions of dollars in limited
partners?
Faber: Yes. About three billion in financing, I think is
what some analysts estimated.
Kernen: This is a pretty big number.
Faber: Yeah, they can get to most of that with the assets
that they have in the partnerships themselves.
Kernen: I use a six month chart to show what's happened
over the last two weeks. You got to look at here. But if
we went back a year, you'd see eighty as far as the high
for Enron. Now we're at sixteen.
Faber: Everybody else took a hit yesterday. Dynegy got
hurt.
Kernen: Well, I got Dynegy next. Don't-- Here we go.
Faber: I'm sorry. I'm getting a little excited.
Kernen: You are.
Faber: Enthusiastic about your charts.
Kernen: There's a weekly chart of Dynegy, and you know
what's coming next, don't you? Now I'm worried about the
utility average. I've worried about the transportation
average a lot in my career. Mark, now the utilities have
replaced my worries. I'm angst-ridden. Did you see this
chart? We're breaking below the--
Cramer: That's a positive, not a negative, Joe.
Kernen: What's wrong with Cramer today? What happened?
Cramer: I'm all fired up!
Faber: He really is. My, God, he's got the DOJ getting
all crazy, the FBI, the CIA. You going down to En--you
going down to Houston yourself?
Cramer: I may just have to. I may have to clean up that
whole city.
Kernen: Jim, why would the--that's the--now getting down
to the lows, I mean, the other averages have come back
quite a bit from the post-attack lows, the utilities are
retesting those. That's not something to worry about?
Cramer: No, because I think there's a lot of money going
into more cyclical issues. I think the economy is showing
signs of getting better. The consumer is certainly much
stronger than we thought. The base book didn't say the
corporate was strong, but the consumer is strong. Much
stronger than before.
Kernen: All right. In the past people have worried about
the utility averages being a leading indicator, though. I
don't--we're talking about four hundred to two-ninety at
this point. That's a long way.
Cramer: This average has got a lot of problems to it, but
I still think that--
Kernen: It's no longer the--
Cramer: --you sell this as safety. We don't want safety
as much as we want a little bit more reciprocality.
# # #
| ||
arnold-j/deleted_items/483.
|
subject: C4 trade
content: Jon, can't say it on the desk in front of Matt. I had nothing to do with that trade. I cover your line so I had to make the call. I am not out here taking garbage about Enron or anything like that. That's why I called Brian in London to call you. Please beleive me. That was arranged between them. I work neither Phibro or EKoch.
Andy Colman (Spectron)
| ||
arnold-j/deleted_items/484.
|
subject: Enron Mentions
content: Enron Replaces Fastow as Finance Chief --- McMahon Takes Over Post; Move Fo=
llows Concerns Over Partnership Deals
The Wall Street Journal, 10/25/01
Enron Ousts Finance Chief As S.E.C. Looks at Dealings
The New York Times, 10/25/01
Pressured Enron Ousts CFO
The Washington Post, 10/25/01
Enron replaces CFO to reassure investors
Houston Chronicle, 10/25/01
FRONT PAGE - FIRST SECTION - Enron replaces finance chief.
Financial Times (U.K. edition), 10/25/01
COMPANIES & FINANCE THE AMERICAS - 'Sell' note issued on Enron shares.
Financial Times (U.K. edition), 10/25/01
LEX COLUMN - Enron.
Financial Times (U.K. edition), 10/25/01
Enron Corp. Cut to `Market Perform' at Banc of America
Bloomberg, 10/25/01
Baring Asset Management's McClen on Enron: Investor Comments
Bloomberg, 10/25/01
Enron ousts CFO amid partnership questions
Associated Press Newswires, 10/25/01
Enron fires CFO to quell unrest: Stock meltdown
National Post, 10/25/01
Enron replaces CFO Fastow in wake of LJM probe; appoints McMahon
AFX News, 10/25/01
ENRON: Embattled chief financial officer ousted
Chicago Tribune, 10/25/01
Enron Ousts CFO Amid SEC Probe
Los Angeles Times, 10/25/01
Shell-Shocked Enron Parts With CFO
TheStreet.com, 10/25/01
Phew! Enron Stinks
RealMoney.com, 10/25/01
Small-Stock Focus: Russell 2000 Ekes Out Increase; Adtran, Arris Group Post=
Gains
The Wall Street Journal, 10/25/01
U.S. directors to be graded by activist: The 'bond' treatment (Toronto edit=
ion headline.); Directors to get the bond treatment: Members of boards to b=
e graded by shareholder activists (All but Toronto edition headline.)
National Post, 10/25/01
UK: U.S. stocks drift in Europe as wary tone persists.
Reuters English News Service, 10/25/01
WORLD STOCK MARKETS - Wall St favours US tech stocks over blue chips AMERIC=
AS.
Financial Times (U.K. edition), 10/25/01
Enron replaces CFO Andy Fastow
CBSMarketWatch, 10/25/01
USA: UPDATE 1-Beleaguered Enron names new CFO.
Reuters English News Service, 10/24/01
USA: Utility stocks drop on slipping expectations.
Reuters English News Service, 10/24/01
Berger & Montague Alleges Enron Misled Investors About Overvalued Assets An=
d Off-Balance Sheet Deals
PR Newswire, 10/24/01
Enron Replaces Fastow as Finance Chief --- McMahon Takes Over Post; Move Fo=
llows Concerns Over Partnership Deals
By Rebecca Smith and John R. Emshwiller
Staff Reporters of The Wall Street Journal
10/25/2001
The Wall Street Journal
A3
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Enron Corp. replaced its embattled chief financial officer, Andrew S. Fasto=
w, capping a tumultuous day in which the huge energy company saw its stock =
price again fall sharply and help pull down the share prices of other major=
energy-trading companies.=20
Investors appeared worried that Enron's recent woes could have a destabiliz=
ing effect on the energy-trading market. The Houston energy powerhouse, wit=
h annualized revenue topping $150 billion and assets of more than $60 billi=
on, handles transactions representing roughly one-quarter of the nation's t=
raded-electricity and natural-gas volumes. In less than two years of operat=
ion, its EnronOnline trading platform has become a central marketplace for =
the energy business and already has handled more than $880 billion in trans=
actions.
"Enron makes the market. Make no mistake about that," said Merrill Lynch an=
alyst Donato Eassey. "There's not a trader out there that doesn't use Enron=
Online." As such, Enron enters into thousands of transactions every day in =
which the company's credit-worthiness is critical. Enron said its business =
operations were functioning normally yesterday. The company also has consis=
tently said it is financially strong and liquid.=20
Enron said its new chief financial officer is Jeffrey McMahon, the 40-year-=
old head of the company's industrial-markets division. His selection may be=
intended, in part, to raise the company's credibility. People familiar wit=
h the matter say Mr. McMahon left his job as treasurer last year after voic=
ing concerns within the company about Mr. Fastow's role in running two limi=
ted partnerships that were involved in billions of dollars worth of transac=
tions with Enron. Internal partnership documents indicate Mr. Fastow and po=
ssibly a handful of associates made millions of dollars from the partnershi=
ps. Mr. Fastow severed his ties with those partnerships in July in the face=
of increasing conflict-of-interest concerns being expressed by Wall Street=
analysts and major Enron investors. On Monday, Enron announced that the Se=
curities and Exchange Commission was looking into the Fastow-related transa=
ctions.=20
While Enron as recently as Tuesday strongly defended Mr. Fastow, as well as=
the company's dealings with the partnerships, controversy over those arran=
gements clearly played a role in the executive's departure. "In my continue=
d discussions with the financial community, it became clear to me that rest=
oring investor confidence would require us to replace Andy as CFO," said Ch=
airman and Chief Executive Kenneth Lay in a prepared statement.=20
Enron said Mr. Fastow "will be on a leave of absence from the company." He =
couldn't be reached for comment.=20
It remains to be seen how much Mr. Fastow's removal will assuage an increas=
ingly restive investment community. The action came after the 4 p.m. market=
close and followed a day in which Enron's stock once again plunged. As of =
4 p.m. in New York Stock Exchange composite trading, Enron shares were at $=
16.41, down $3.38, or 17%. It topped the Big Board's most active list at ne=
arly 76 million shares, more than twice the volume of the second-most-activ=
e stock. Several trades yesterday involved blocks of 800,000 shares or more=
, possibly indicating that some institutional holders are souring on Enron =
stock.=20
Enron's shares are down about 50% from the beginning of last week. Earlier =
this year, the stock was above $80 a share.=20
In an apparent ripple effect, the stocks of other energy-trading companies,=
which do business with Enron, also fell sharply yesterday. For instance, D=
ynegy Inc. shares on the Big Board were off $5.45, or 13%, at $37.26. A num=
ber of the energy companies hit by the selloff have business strategies muc=
h different than Enron's, which rely heavily on complex and highly structur=
ed investment vehicles.=20
Prudential Securities analyst Carol Coale said Mr. Fastow's departure could=
be seen as evidence that "management does care" about investor concerns. H=
owever, she adds, the move also could be viewed by some investors, coming a=
s it did two days after the announcement of the SEC inquiry, as "an admissi=
on of guilt." Ms. Coale yesterday issued a sell recommendation on Enron lar=
gely because of uncertainties about the company's extremely complex financi=
al structure.=20
Enron has consistently denied any wrongdoing in its Fastow-related dealings=
.=20
Worries and rumors about Enron's financial strength could be found in the s=
tock market yesterday. Goldman Sachs analyst David Fleischer said he heard =
people voice concerns about a possible "death spiral" in which increasing c=
redit concerns about Enron would decrease the number of people willing to d=
o business with the company, which would in turn weaken its finances and le=
ad to further business reductions. Mr. Fleischer, a longtime fan who still =
has a buy recommendation on the company, said he hasn't yet seen any eviden=
ce of such a problem.=20
However, Mr. Fleischer said, Enron needs to disclose more information about=
its myriad of financial transactions with related partnerships and other e=
ntities. Enron is facing a problem with "trust and credibility. It's not ea=
sy to regain something as basic as trust," he said.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business/Financial Desk; Section C
Enron Ousts Finance Chief As S.E.C. Looks at Dealings
By FLOYD NORRIS
10/25/2001
The New York Times
Page 2, Column 5
c. 2001 New York Times Company
The Enron Corporation, its stock battered by a sudden loss of investor conf=
idence, yesterday ousted its chief financial officer, Andrew S. Fastow, who=
se involvement in complicated transactions with Enron has drawn the scrutin=
y of the Securities and Exchange Commission.=20
''In my continued discussions with the financial community, it became clear=
to me that restoring investor confidence would require us to replace Andy =
as C.F.O.,'' Kenneth L. Lay, Enron's chairman and chief executive, said in =
a statement announcing the change. Only one day before, Mr. Lay had told in=
vestors in a conference call that he and the Enron board ''continue to have=
the highest faith and confidence in Andy.''
The company said that Mr. Fastow had taken a leave of absence, but it also =
named his successor, Jeffrey McMahon, the head of Enron's industrial market=
s group and a former corporate treasurer.=20
Enron said none of the officials were available for interviews last night.=
=20
The move came after the close of trading on the New York Stock Exchange, wh=
ere Enron's shares fell $3.38, to $16.41. The price has been cut in half si=
nce Oct. 16, when Enron reported its third-quarter earnings. A $1.2 billion=
reduction in shareholder equity brought on by ending some relationships wi=
th partnerships that Mr. Fastow had headed was not disclosed in the earning=
s news release. Mr. Lay briefly mentioned it in the conference call that fo=
llowed, but some analysts thought he was referring to a separate $1 billion=
write-off that was disclosed in the earnings document, and were angered wh=
en they later learned about it.=20
On Tuesday, when both Mr. Fastow and Mr. Lay discussed the company with ana=
lysts on the conference call, neither was willing to discuss details of the=
transactions between Enron and the partnerships formerly controlled by Mr.=
Fastow. Mr. Lay cited the S.E.C. inquiry in declining to discuss the detai=
ls of the transactions.=20
The fact the transactions took place has been known for a year, but Enron's=
disclosures have been widely criticized for being impossible to understand=
.=20
By structuring the deals as involving forward commitments to deliver Enron =
stock, it appears that Enron was able to assure that losses on them would n=
ot lead to reported losses, but instead to reductions of shareholder equity=
that had no effect on the income statement. That is one of the issues the =
S.E.C., whose inquiries were disclosed Monday by the company, is expected t=
o address.=20
Concerns have also grown this week over whether Enron will face losses from=
complicated financing strategies that kept billions of dollars of debts of=
f its balance sheet but left the company responsible for paying -- either i=
n cash or with stock -- if things went wrong. On Tuesday, Mr. Fastow assure=
d investors that the company ''expects to continue to have sufficient liqui=
dity to meet normal obligations,'' and said it had bank credit lines that w=
ere more than adequate.=20
Mr. Fastow was viewed as one of the architects, with Jeffrey K. Skilling, t=
he former Enron chief executive who resigned in August, of the change in bu=
siness strategy that turned Enron from a gas-pipeline company into a an ene=
rgy trading powerhouse that developed a large Wall Street following. Its st=
ock price peaked in the summer of 2000 at $90.75.=20
According to a person close to the company, while Mr. McMahon, Mr. Fastow's=
successor, was Enron's treasurer, he told Mr. Skilling, who at the time wa=
s the chief operating officer, that he thought the partnerships involving M=
r. Fastow presented a conflict of interest. After that discussion, Mr. McMa=
hon moved to a different job at the company, this person said.=20
Shares of Enron traded as low as $15.51 yesterday afternoon, the lowest pri=
ce for the stock since early 1995, before recovering. In after-hours tradin=
g, they fell to $16.14.=20
One of the factors that hurt the stock yesterday was a decision by M. Carol=
Coale, an analyst at Prudential Securities, to drop her rating to ''sell''=
from ''hold.'' She had lowered the rating to ''hold'' from ''buy'' on Mond=
ay.=20
''After the S.E.C. inquiry was announced,'' she said in an interview yester=
day evening, ''Enron should have addressed it by delivering a scapegoat, as=
a gesture to the Street. Now they are replacing him today. The timing is a=
little late, but I think it will be received positively by the Street.''=
=20
But she said that investor sentiment might work the other way. ''People cou=
ld fear that if you remove Fastow from the management team, you'll never ge=
t any answers.''
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Financial
Pressured Enron Ousts CFO
10/25/2001
The Washington Post
FINAL
E02
Copyright 2001, The Washington Post Co. All Rights Reserved
Enron replaced Andrew Fastow as its chief financial officer, a day after ch=
ief executive Kenneth Lay stressed the company's confidence in Fastow, who =
performed dual roles as the energy giant's CFO while managing partnerships =
with which Enron did business. "In my continued discussions with the financ=
ial community, it became clear to me that restoring investor confidence wou=
ld require us to replace Andy as CFO," Lay said in a statement. The partner=
ships have been dissolved.=20
http://www.washingtonpost.com=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Oct. 25, 2001, 12:06AM
Houston Chronicle
Enron replaces CFO to reassure investors=20
By LAURA GOLDBERG=20
Copyright 2001 Houston Chronicle=20
In a bid to repair its badly damaged credibility on Wall Street, Houston-ba=
sed Enron Corp. removed its chief financial officer Wednesday, as federal s=
ecurities regulators review business dealings between Enron and two investm=
ent partnerships that he ran.=20
Enron, the world's largest energy trader, said Chief Financial Officer Andr=
ew Fastow had been put on a "leave of absence" for an undetermined period a=
nd named another Enron executive, Jeff McMahon, as his replacement. The com=
pany said the move was not a reflection on Fastow or a belief that he had d=
one anything improper.=20
"In my continued discussions with the financial community, it became clear =
to me that restoring investor confidence would require us to replace Andy a=
s CFO," Enron Chairman and CEO Ken Lay said in a statement after the stock =
market closed on a day investors continued dumping shares.=20
Enron, which had seen its stock battered this year for a variety of reasons=
, found itself high on Wall Street's hit list after it released third-quart=
er earnings on Oct 16.=20
The earnings report drew renewed attention to something investors and analy=
sts had already expressed displeasure at: Fastow, with the approval of Enro=
n's board, had formed and run two investment partnerships -- LJM Cayman and=
LJM2 Co-Investment.=20
The partnerships, which did complex financing and hedging deals with Enron,=
served as a source of funding for Enron projects and investments.=20
But Wall Street questioned how Fastow could watch out for the interests of =
Enron's shareholders and the investment partnership at the same time.=20
So Fastow, in June, resigned his roles at the partnerships and Enron also e=
nded its relationships with the LJM entities. During the third-quarter, Enr=
on took a $35 million loss related to ending its LJM ties as well as a $1.2=
billion reduction in shareholder equity.=20
Tuesday, Lay told analysts and investors that procedures were rigorously fo=
llowed to ensure the interests of Enron and its shareholders were protected=
in dealings with the LJM partnerships. He said a "Chinese wall" existed be=
tween Enron and LJM.=20
Fastow's replacement, McMahon, previously served as Enron's treasurer befor=
e moving last year to another job with Enron. Most recently, he headed up t=
he company's industrial markets group. A source close to Enron said McMahon=
asked to be reassigned from the treasurer's job because he was uncomfortab=
le with the Fastow-LJM setup.=20
Enron spokesman Mark Palmer said neither Fastow nor McMahon was available f=
or comment Wednesday. He also didn't know whether Fastow is still receiving=
a salary.=20
Enron disclosed on Monday that federal securities regulators had begun an "=
informal inquiry" into the LJM dealings.=20
The news proved terrible for a company already working to rebuild investor =
confidence after a series of failed investments in telecommunications, wate=
r and retail power businesses and the surprise resignation of CEO Jeff Skil=
ling in August for personal reasons.=20
A continuously growing number of shareholder lawsuits against Enron followe=
d the earnings report and the news of the SEC inquiry.=20
Wall Street has stepped up its chronic complaints that Enron's various fina=
ncial dealings are too complex to follow and that the company fails to give=
analysts enough data to make proper evaluations.=20
Beyond the LJM partnerships, investors are concerned about two other partne=
rships Enron set up. Among the worries is that Enron will end up having to =
issue new shares of stock to cover commitments associated with those entiti=
es.=20
Investors wouldn't like that because it would dilute the value of current o=
utstanding shares. They are also afraid that Enron's debt credit rating may=
be downgraded, which could have negative impacts on its overall business.=
=20
In the last six days, Enron's shares have closed lower and lower. On Oct. 1=
6, the stock closed at $33.84. On Wednesday it closed at $16.41, down $3.38=
.=20
Wednesday, the hubbub surrounding Enron also dragged down shares in other c=
ompanies that engage in energy trading, including Houston-based Dynegy, whi=
ch closed down $5.45 at $37.26. There is concern Enron's woes could in some=
way end up harming the energy trading markets.=20
A conference call Lay and senior executives, including Fastow, held with an=
alysts Tuesday to help clear up questions didn't go as Enron hoped.=20
On Wednesday, Carol Coale, an analyst with Prudential Securities in Houston=
, moved from a "hold" to a "sell" rating.=20
FRONT PAGE - FIRST SECTION - Enron replaces finance chief.
By JULIE EARLE and SHEILA MCNULTY.
10/25/2001
Financial Times (U.K. edition)
(c) 2001 Financial Times Limited . All Rights Reserved
FRONT PAGE - FIRST SECTION - Enron replaces finance chief - Energy company =
attempts to halt sharp decline in its share price.=20
Enron, the US energy group, yesterday replaced its embattled chief financia=
l officer, Andrew Fastow, to try to halt a slide in its share price, which =
has lost about 40 per cent of its value this week.
Kenneth Lay, Enron's chief executive officer, said after the market closed =
that Mr Fastow was taking a leave of absence. The move came a day after Mr =
Lay defended Mr Fastow amid questions about his ties to controversial partn=
erships that had forced Enron to take a $1.2bn write-off.=20
That loss, revealed last week, sparked the share sell-off amid concerns the=
re may be more bad news to come. Enron disclosed the loss during an October=
16 conference call with analysts on its third-quarter results, saying the =
charge stemmed from closing funding mechanisms that Enron had set up in the=
partnerships established with Mr Fastow.=20
Analysts say the charge has not been satisfactorily explained, leading to c=
onfusion among investors and an unofficial inquiry by the Securities and Ex=
change Commission.=20
"In my continued discussions with the financial community, it became clear =
to me that restoring investor confidence would require us to replace Andy a=
s CFO," Mr Lay said. He said Jeff McMahon, chairman and chief executive of =
Enron's industrial markets group, would replace Mr Fastow. Mr McMahon earli=
er served as Enron's treasurer.=20
Analysts said it was unclear whether Mr Fastow's departure would be enough.=
Carol Coale, of Prudential Securities, said the move was positive in demon=
strating that Enron was being sensitive to Wall Street, which had called fo=
r Mr Fastow to be replaced. Yet, she added, it came three days after those =
calls.=20
Ms Coale issued a "sell" recommendation on Enron earlier yesterday, leading=
to a drop of almost 18 per cent in its share price. "We are concerned abou=
t what we don't know," Ms Coale said. She was concerned that Enron might ha=
ve to sell assets below book value to maintain its credit rating, or be for=
ced to issue equity to bolster its balance sheet. Enron might also lose cus=
tomers to competitors that were not under such pressure.=20
Enron believes such concerns are misplaced and the SEC inquiry will prove t=
he company has done nothing wrong. Lex, Page 16.=20
(c) Copyright Financial Times Ltd. All rights reserved.=20
http://www.ft.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
COMPANIES & FINANCE THE AMERICAS - 'Sell' note issued on Enron shares.
By SHEILA MCNULTY.
10/25/2001
Financial Times (U.K. edition)
(c) 2001 Financial Times Limited . All Rights Reserved
Shares in Enron, the US energy group, fell again yesterday after Prudential=
Securities issued a "sell" note on concerns that the $1.2bn loss taken by =
the company last week might not be the end of its bad news.=20
In the first hour of New York Stock Exchange trading, Enron's stock was the=
biggest percentage loser, dropping 20.2 per cent to $15.80 - its lowest le=
vel since August 1995. /
"We are concerned about what we don't know," said Carol Coale, the Prudenti=
al analyst who covers Enron.=20
She was disappointed that Enron had not been more forthcoming in the confer=
ence call it held on Tuesday in response to charges it was not being transp=
arent.=20
Investors have been abandoning the stock since October 16, when Enron told =
analysts it was taking a $1.2bn loss in shutting down funding mechanisms it=
had set up in controversial partnerships established with Andrew Fastow, t=
he chief financial officer.=20
This charge has not been thoroughly explained, leading to confusion among a=
nalysts and an unofficial inquiry by the Securities and Exchange Commission=
.=20
Ms Coale said she was concerned Enron might have to sell assets below book =
value to maintain its credit rating, or be forced to issue equity to bolste=
r its balance sheet. She said Enron might lose customers to competitors tha=
t are not under such pressure.=20
Enron believes such concerns are misplaced and that the SEC enquiry will pr=
ove that the company has done nothing wrong.=20
(c) Copyright Financial Times Ltd. All rights reserved.=20
http://www.ft.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
LEX COLUMN - Enron.
10/25/2001
Financial Times (U.K. edition)
(c) 2001 Financial Times Limited . All Rights Reserved
Enron=20
To lose a chief executive may be regarded as a misfortune. To lose the chie=
f financial officer as well looks like carelessness.
Enron's effort to increase transparency, revealing more operating data in i=
ts third quarter release, was undermined by its decision to gloss over a $1=
.2bn equity charge related to the closing of "related party transactions" w=
ith two off-balance sheet financing vehicles. And it neglected to mention t=
hat the vehicles were run by Andrew Fastow, its CFO. Conflict of interest a=
nyone?=20
The Securities and Exchange Commission is conducting an informal inquiry. I=
nvestors, angry after the initial revelation, had reason to feel more so af=
ter its conference call, which was supposed to clear up confusion over the =
financing vehicles and related party transactions. The call had the opposit=
e effect.=20
The charge to shareholders' equity, and the related reduction in notes rece=
ivable, was the result of closing one of the vehicles - and the termination=
of previously recorded contractual obligations to deliver Enron shares. Th=
e uncertainty is whether Enron might have to sell assets or issue new stock=
to cover possible shortfalls in other vehicles. Credit concerns and lack o=
f disclosure explain the weakness of stock and bond prices. Enron is unlike=
ly to lose its investment grade status, but dilution is a real risk for sha=
reholders. Mr Fastow has gone (following Jeffrey Skilling, former chief exe=
cutive, who quit after only six months as CEO). But the credibility problem=
goes beyond one individual.=20
(c) Copyright Financial Times Ltd. All rights reserved.=20
http://www.ft.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron Corp. Cut to `Market Perform' at Banc of America
2001-10-25 08:49 (New York)
Princeton, New Jersey, Oct. 25 (Bloomberg Data) -- Enron Corp. (ENE US=
)
was downgraded to ``market perform'' from ``strong buy'' by analyst William=
J
Maze at Banc of America.
Baring Asset Management's McClen on Enron: Investor Comments
2001-10-25 08:09 (New York)
London, Oct. 25 (Bloomberg) -- The following are comments by
Catherine McClen, who helps manage about $17 billion of bonds for
Baring Asset Management, about Enron Corp.
Yesterday, Enron ousted Chief Financial Officer Andrew Fastow
amid a Securities and Exchange Commission inquiry into
partnerships he ran that cost the largest energy trader
$35 million. McClen said Baring bought credit-linked notes issued
by Houston-based Enron during the summer.
``Given what has happened, with them basically firing Andy
Fastow, the CFO, they've finally woken up to how concerned people
are about the management-credibility issue.'' On a recent
conference call ``no one thought they did themselves any favor in
terms of calming investors' concerns.''
``They were slightly hiding behind the fact that the SEC has
got this inquiry going. The fact that two days later Andy is gone,
and he was in the center, is a good sign that the company is
realizing just how concerned investors are.''
``There's always that worry once the SEC gets involved that
it could extend. You never know what could come of that.''
``There is a bit of fear of the unknown about Enron now, with
the SEC inquiry and the risk that there could be further asset
write-downs.''
``Another thing they're criticized for is their lack of
disclosure. We still haven't seen a balance sheet for the third
quarter.''
``People are saying, why don't you include a balance sheet
with your results? They promised better disclosure in the past and
that was meant to begin in the third quarter.''
``You'd like to see just more information on asset write-
downs and a discussion of their off-balance-sheet financing -- all
these vehicles they have like Marlin and Osprey.''
``We'd like to see some clarity, answering those sort of
questions.''
``It seems as though Enron at least are maybe at the start of
a process where they're going to address and clean up their
balance sheet and they've started to replace management.''
``Investors have already had enough issues'' in corporate
bonds recently and ``sometimes investors just think, `Not another
nasty in my portfolio,' and I'd rather exit.''
``For certain investors maybe they just get scared. I wanted
to know more about it. People had speculated if it could go to
junk. I don't think they could because I don't think Enron could
exist as a junk company.''
``There's a certain reluctance'' to sell the bonds. ``You
want to stand back for a moment and look at the fundamentals.''
``When the spreads have already moved out that wide you have
to reassess and see whether you think it's a buying opportunity.''
--Christine Harper in the London newsroom (44 20) 7330-7982 or
[email protected] /jom
Enron ousts CFO amid partnership questions
By PAM EASTON
Associated Press Writer
10/25/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
HOUSTON (AP) - Enron Corp. may have added another question to the list inve=
stors already have by ousting its chief financial officer a day after the c=
ompany stressed its confidence in Andrew Fastow amid a Securities and Excha=
nge Commission inquiry.=20
"It could either be viewed as a positive step toward easing investor concer=
n or it could be interpreted as if Enron removed the CFO at the request of =
the SEC," Prudential Securities Inc. analyst Carol Coale said Wednesday. "W=
ho knows?"
Enron officials hope it will result in increased investor confidence after =
the energy trading giant's stocks have declined in value each day since Mon=
day's announcement that the SEC had inquired about partnerships that did bu=
siness with Enron while they were managed by Fastow.=20
"In my continued discussions with the financial community, it became clear =
to me that restoring investor confidence would require us to replace Andy a=
s CFO," Enron chief executive officer Kenneth Lay said after markets closed=
Wednesday.=20
Fastow will take a leave of absence from the company while Jeff McMahon, wh=
o has served as chairman and chief executive of Enron's Industrial Markets =
group, takes over his role.=20
"I think change is good at this particular point in time," said FAC Equitie=
s analyst Robert Christensen said. "I think Andy was somewhat beleaguered."=
=20
A.G. Edwards & Sons analyst Mike Heim, however, said it will take more than=
replacing Fastow as chief financial officer to clear the uncertainty loomi=
ng in the financial world about Enron and its partnerships.=20
"I think the reason why the stock has been declining so sharply the last fe=
w days is due to a lack of clarity on the partnership arrangements," Heim s=
aid.=20
Replacing Fastow alone won't clarify those arrangements, he added.=20
"There is still uncertainty despite promises by management to be more trans=
parent to the financial community," Heim said. "Instead of being more trans=
parent there is more confusion than ever."=20
Enron's stock continued to plummet Wednesday, closing down $3.38 to $16.41 =
per share, a 17 percent decline.=20
Since the Wall Street Journal first reported on the partnerships last week,=
Enron's stock price has slid nearly 52 percent.=20
"The market was asking for that to happen," J.P. Morgan analyst Anatol Feyg=
in said of Fastow's departure. "This is really the first time Enron has act=
ed as an agent of the shareholder in this crisis."=20
Previously, Enron's managers have been "cautious and defensive in their app=
roach," he said.=20
During a conference call Tuesday to address investor concern, Lay said the =
partnerships were fully disclosed and contained measures to ensure no confl=
ict existed as Fastow carried out the dual roles. The partnerships have sin=
ce been dissolved.=20
The call didn't work for many, including Feygin and Heim.=20
"I didn't hear things like we've unrolled all these partnership dealings or=
here's all the exact details of how the partnerships work or we don't ever=
expect to take any more charges," Heim said. "What I heard is we don't hav=
e to disclose that information until the 10-Q is filed."=20
The turbulent past few months which have included the SEC inquiry, third qu=
arter losses and the August resignation of the company's chief executive of=
ficer, Jeff Skilling, have left many analysts questioning the company's fut=
ure, Heim said.=20
"It's really a speculative bet right now, but the odds favor the company be=
ing able to weather the storm and being a healthy company if not a year fro=
m now, two years from now," he said.=20
But much is going to depend on how much Enron discloses to its investors, F=
eygin said.=20
Feygin said McMahon worked as Enron's treasurer for two years under Fastow =
before a disagreement over Fastow's involvement in the partnerships caused =
McMahon to leave his job as treasurer.=20
"Internally, Jeff was always a proponent of Andy not being involved in (the=
partnerships)," Feygin said. "Three days ago I would have said there is no=
need for a change at the CFO level. Today, it was pretty obvious it was so=
mething Enron needed to do."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Financial Post Investing
Hot Stock
Enron fires CFO to quell unrest: Stock meltdown
Jason Chow
Financial Post, with files from Bloomberg News
10/25/2001
National Post
National
IN1 / Front
(c) National Post 2001. All Rights Reserved.
Facing a crisis of confidence in the market, Enron Corp. replaced its chief=
financial officer yesterday as its stock continued to tumble.=20
After failing to rally the support of analysts in a damage-control conferen=
ce call Tuesday, the Houston-based energy trader dropped chief financial of=
ficer Andrew Fastow, who has been linked to transactions being looked at by=
the Securities and Exchange Commission. He was replaced by former treasure=
r Jeff McMahon.
The move came after Enron shares (ENE/NYSE) dropped US$3.38 to US$16.41. Th=
e stock has dropped 55% in the past two weeks -- wiping out US$10-billion o=
f shareholder wealth.=20
"In my continued discussions with the financial community, it became clear =
to me that restoring investor confidence would require us to replace Andy a=
s CFO," Enron chief executive Kenneth Lay said.=20
Early last week, Enron reported a US$618-million third-quarter loss, result=
ing from US$1.01-billion in write-offs.=20
The company also disclosed a US$1.2-billion reduction in shareholder equity=
for the quarter as a result of terminating certain transactions related to=
a partnership that for a time was headed by Mr. Fastow.=20
In July, Mr. Fastow ended his connection to the partnership in the face of =
growing concerns by analysts and major investors. The SEC is currently look=
ing into the partnership arrangement.=20
The turmoil of the past several days prompted Enron to schedule a conferenc=
e call Tuesday morning with Wall Street analysts to reassure investors.=20
During the call, Enron officials declined to specify Mr. Fastow's role in t=
he partnership, citing the ongoing SEC investigation and a derivative lawsu=
it filed against Enron that alleges its board breached its fiduciary duties=
by allowing Mr. Fastow to create and run the partnerships.=20
The stock came under renewed pressure early in the day after analyst Carol =
Coale of Prudential Financial downgraded the stock for the second time this=
week, to "sell" from "hold." Ms. Coale said the rating change is "not beca=
use of things we do know but because of things that we potentially don't kn=
ow about the company."=20
Volume was very heavy, with 75.8 million shares changing hands. Average dai=
ly volume is 6.7 million shares.=20
J.P. Morgan analyst Anatol Feygin was also less than impressed with Enron's=
line during the conference call.=20
The company acknowledged that transactions with partnerships run by its chi=
ef financial officer led to a writedown of US$1.2-billion in shareholder eq=
uity. But Mr. Feygin said management was "defensive" when pressed for detai=
ls.=20
Ms. Coale reduced her price target down US$15 from US$55, assuming more bad=
news was to come.=20
While the allegations of impropriety cloud Enron, Mr. Feygin said the compa=
ny's credit situation could be the more crucial factor for its short-term f=
ortunes.=20
Last week, Moody's Investors Service placed all US$13-billion of the compan=
y's long-term debt securities on watch for possible downgrade. If Moody's l=
owered its rating, Enron's short-term debt costs would rise.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron replaces CFO Fastow in wake of LJM probe; appoints McMahon
10/25/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
HOUSTON (AFX) - Enron Corp said it named Jeff McMahon chief financial offic=
er in place of Andrew Fastow.=20
Announcing McMahon's appointment, Chairman Kenneth Lay said: "In my continu=
ed discussions with the financial community, it became clear to me that res=
toring investor confidence would require us to replace Andy as CFO."
Enron shares have fallen sharply in recent days on concerns over financial =
transactions made with the two LJM partnerships run by Fastow, which analys=
ts said could affect future earnings and which have prompted class action s=
uits against the company.=20
On Monday, Enron announced that the Securities and Exchange Commission was =
looking into the Fastow-related transactions.=20
McMahon had been serving as chairman and CEO of Enron's Industrial Markets =
group.=20
The Wall Street Journal quoted people familiar with the matter as saying Mc=
Mahon left his job as treasurer last year after voicing concerns within the=
company about Fastow's role in running the two partnerships.=20
Internal documents indicate Fastow and possibly a handful of associates mad=
e millions of dollars from the partnerships, the newspaper reported.=20
jms For more information and to contact AFX: www.afxnews.com and www.afxpre=
ss.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business
THE TICKER
ENRON: Embattled chief financial officer ousted
From Tribune news services
10/25/2001
Chicago Tribune
North Sports Final ; N
2
(Copyright 2001 by the Chicago Tribune)
Enron Corp. ousted Andrew Fastow as its chief financial officer Wednesday, =
a day after Chief Executive Kenneth Lay stressed the company's confidence i=
n him despite growing controversy over Fastow's role overseeing partnership=
s that did business with the energy- trading giant.=20
"In my continued discussions with the financial community, it became clear =
to me that restoring investor confidence would require us to replace Andy a=
s CFO," Lay said in a statement..
The company said Fastow had taken a leave of absence, but it also named his=
successor, Jeff McMahon, the head of Enron's industrial markets group and =
a former corporate treasurer.=20
The move came after the close of trading on the New York Stock Exchange, wh=
ere Enron's shares fell $3.38, to $16.41. The price has been cut in half si=
nce Oct. 16, after Enron's third-quarter earnings release failed to disclos=
e the partnerships.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business; Financial Desk
Enron Ousts CFO Amid SEC Probe
Bloomberg News
10/25/2001
Los Angeles Times
Home Edition
C-3
Copyright 2001 / The Times Mirror Company
HOUSTON -- Enron Corp. ousted Chief Financial Officer Andrew Fastow Wednesd=
ay amid a Securities and Exchange Commission inquiry into partnerships he r=
an that cost the largest energy trader $35 million.=20
Enron named Jeff McMahon, head of its industrial markets group, as CFO beca=
use "it became clear to me that restoring investor confidence would require=
us to replace Andy," Chairman and Chief Executive Kenneth Lay said.
Fastow will take a leave of absence.=20
Shares of Enron, based in Houston, have plunged 80% this year. Third-quarte=
r charges of $1.01 billion from failed investments outside the main commodi=
ties trading business wiped out 70% of the profit earned in the last four q=
uarters.=20
"Investors were clearly not comfortable with exposure to Andy," said J.P. M=
organ analyst Anatol Feygin, who downgraded Enron to "long-term buy" and ow=
ns no shares.=20
Fastow, 39, ran LJM Cayman and LJM2 Co-Investment, two partnerships created=
by Enron to buy company assets. Enron's involvement in the financing vehic=
les cost the company $35 million in third-quarter losses.=20
Enron also bought back 62 million shares from LJM2 at a cost of $1.2 billio=
n to unwind its investment.=20
During a conference call Tuesday, Lay said, "I and Enron's board of directo=
rs continue to have the highest faith and confidence in Andy and think he's=
doing an outstanding job as CFO."=20
Enron announced that Fastow would leave after its stock closed down $3.38, =
or 17%, to $16.41 in trading Wednesday on the New York Stock Exchange, sett=
ing a new 52-week low.=20
The SEC began an inquiry into Enron's partnerships Monday. Spokeswoman Kare=
n Denne said it is an informal inquiry that Enron is cooperating with, and =
that no subpoenas have been received.=20
The company has formed at least 18 affiliated partnerships and corporations=
, some of which buy and sell Enron assets such as power plants, records at =
the Texas secretary of state's office indicate.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Shell-Shocked Enron Parts With CFO
By Peter Eavis <mailto:[email protected]>
Senior Columnist
10/24/2001 06:40 PM EDT
URL: <http://www.thestreet.com/markets/detox/10002964.html>
TheStreet.com
Enron's (ENE:NYSE - news - commentary) problems won't go out the door with =
Andrew Fastow.=20
The finance chief, who was replaced Wednesday, came under scrutiny as the e=
xecutive who orchestrated and profited from a hedging deal that went sour, =
saddling Enron with a $1.2 billion charge to equity. As details of this dea=
l, and others, have emerged over the past two weeks, Enron stock has collap=
sed, falling 54% in just seven days.=20
Wednesday, the stock fell a further 17% on enormous volume, signifying that=
once-faithful mutual fund holders were bailing. Also Wednesday, a raft of =
once-friendly analysts downgraded the stock. Faced with betrayal on that sc=
ale, Enron management at last felt compelled to act; a press release says F=
astow is taking a leave of absence. He's been replaced by Jeffrey McMahon, =
formerly CEO of Enron's industrial markets group.=20
How might the Enron bulls spin this? Likely, they will point to McMahon's a=
lleged opposition to Fastow's role in the big hedging deal, called LJM2, to=
show that the "Fastow era" is over. The Wall Street Journal, citing anonym=
ous sources, reported Tuesday that as treasurer at Enron McMahon complained=
about Fastow's possible conflict of interest. Probably, the fear was that =
Fastow couldn't serve Enron and LJM2 equally, especially as he was allegedl=
y making a lot of money from LJM2.=20
Clearly, if McMahon turns out to be a new broom, that's a positive for Enro=
n. An Enron spokeswoman declined to comment on whether The Journal's accoun=
t of McMahon's stance on LJM2 was correct.=20
Not much else is encouraging, however. Fastow's departure shows that it too=
k massive drops in Enron stock to force senior management into action. On a=
difficult conference call Tuesday, CEO Ken Lay gave Fastow resounding back=
ing. It took Wednesday's plunge to get Lay to sign off on a new CFO. In oth=
er words, Lay listens only when the market screams and hollers. How much fu=
rther does the stock have to fall to bring further much-needed reforms at t=
he company?=20
The spokeswoman responds that Lay had discussions with analysts Tuesday and=
Wednesday that led him to the conclusion that Fastow's replacement was nec=
essary to rebuild investor confidence.=20
Enron culture is thick with financial sorcery. People got upset by one shad=
owy deal, but no one knows exactly how the company's core energy trading bu=
siness makes money. It's hard to believe the LJM2 deals were done in isolat=
ion and without the knowledge of the board.=20
In fact, the chatter is that Fastow and former CEO Jeff Skilling proposed t=
he LJM2 transactions to the board after it was reluctant to enter the broad=
band business. The board apparently feared the volatility that might come f=
rom being in broadband, so Fastow allegedly proposed LJM2 as a way to hedge=
that volatility away. This meant LJM2 entered agreements that gave it acce=
ss to increases in the value of broadband assets but protected Enron from t=
he downside. Should the whole board be on the hook, too? The spokeswoman re=
sponds that the board would not have entered the LJM2 transaction if it had=
not thought it would benefit Enron and its shareholders.=20
Lay has shown himself to be woefully out of touch with the market's views. =
Arguably, that's downright reckless for a trading company that is dependent=
on potentially skittish short-term financing. Letting things get this bad =
has risked good faith among Enron counterparties and bankers. It shows an u=
nhealthy reluctance to address key problems until they're unavoidable. The =
spokeswoman responds that the company is now working hard to improve transp=
arency.=20
Any efforts in that direction will be much appreciated, but is it any wonde=
r people compare this lot to Long Term Capital Management?=20
Phew! Enron Stinks
By James J. Cramer <mailto:[email protected]>
RealMoney.com
10/25/2001 07:04 AM EDT
URL: <http://www.thestreet.com/p/rmoney/jamesjcramer/10002968.html>
Did Enron (ENE:NYSE - news - commentary) cause the energy crisis? Did it cr=
eate a short squeeze in energy by buying up all available power and hoardin=
g it, perhaps in a series of partnerships that it controlled? Did we wipe o=
ut billions in equity of utilities in some sort of bizarre zero-sum game in=
which Enron won it all and shareholders from California utilities lost?=20
And was Enron at the hub of a vast power conspiracy to screw the U.S. consu=
mer?=20
Somehow, I believe that if it weren't for the events of Sept. 11 and its af=
termath, these questions would be asked right now by a Justice Department a=
ntitrust division or a Congressional investigation. To me, this one smells =
worse than anything that Microsoft might have done at one time.=20
And we need to give some of these departed Enron execs immunity to get to t=
he bottom of what may have been the greatest antitrust act in history.=20
We ought to do it fast, too, while there is some Enron left to pay the treb=
le damages that violators owe.=20
What surprises me is that some enterprising young prosecutor doesn't want t=
o make his name blowing this one wide open.=20
This nation must stop at nothing to get the terrorists. But it can't abando=
n the white-collar folks, either.=20
There was just too much money lost too fast for what, in an era where energ=
y seems pretty plentiful, couldn't possibly, in retrospect, be considered a=
real shortage.=20
Random musings: See you on CNBC'S "Squawk," where I will, if given the chan=
ce, talk about Viacom (VIAB:NYSE - news - commentary) , ChevronTexaco (CVX:=
NYSE - news - commentary) , United Technologies (UTX:NYSE - news - commenta=
ry) and Wells Fargo (WFC:NYSE - news - commentary) , all of which have some=
nice cyclicality to them, which is what is called for at this very moment.=
???Small-Stock Focus: Russell 2000 Ekes Out Increase; Adtran, Arris Group =
Post Gains?By Karen Talley?Dow Jones Newswires??10/25/2001?The Wall Street =
Journal?C6?(Copyright (c) 2001, Dow Jones & Company, Inc.)??NEW YORK -- It =
was a day for small-cap stocks to hug the baseline -- barely moving -- befo=
re ending the day with a slight gain as a number of positive profit reports=
pitched them onto positive ground. ?The Russell 2000 Index of small-capita=
lization stocks rose 0.28 point, or 0.07%, to 427.65, while the Nasdaq Comp=
osite Index added 27.10, or 1.59%, to 1731.54.?Given small caps' modest adv=
ance, their finishing the day higher hardly was guaranteed. For a while, in=
fact, they trailed larger-cap technology issues and blue chips, although t=
here were moments when these stocks, too, slipped into negative territory. =
?The day offered little anthrax news but lots of earnings reports, and inve=
stors voted according to whether their companies had done well or not. ?Gen=
erally for small caps, "It's `where do we go from here' time," said Andrew =
Rich, small-cap portfolio manager with Driehaus Capital Management. A lot o=
f small caps have recouped the ground they lost the first week the market r=
eopened after the terrorist attacks, but there are few compelling reasons t=
o be an aggressive buyer, Mr. Rich said. "Now, it seems the whole market is=
looking for direction." ?On the Nasdaq, volume was 1.865 billion shares, w=
ith 1.321 billion advancing and 516 million declining. Gainers outpaced dec=
liners by 1,902 to 1,628. ?It was tech all the way among the day's top perf=
ormers. ?Communications technology, including a lot of fiber-optic and netw=
orking firms, ranked highest. Among small caps, Adtran rose 97 cents, or 4.=
2%, to 23.97, Arris Group jumped 75 cents, or 19%, to 4.60 and Extreme Netw=
orks added 93 cents, or 7.6%, to 13.17. ?Semiconductors were the session's =
second-best presenters with, among small caps, Elantec Semiconductor adding=
3.71, or 12%, to 34.15, and Oak Technology rising 86 cents, or 11%, to 8.8=
0. ?Wireless-communications stocks were also strong, with help from large-c=
ap Nextel Communications, which advanced 1.29, or 17%, to 8.69 after postin=
g a third-quarter loss that surpassed Wall Street estimates amid continued =
firmness in subscriber growth. In some possible spillover among small caps,=
AirGate PCS rose 3.28, or 6.1%, to 56.78. ?The day's poorest performers we=
re natural-gas utilities, which continued to be dragged down by large cap E=
nron, which fell 3.38, or 17%, to 16.41. Piedmont Natural Gas fell 34 cents=
, or 1.1%, to 30.63, and Peoples Energy shed 56 cents, or 1.4%, to 39.06. ?=
Pegasystems jumped 1.21, or 43%, to 4.01 after a 12% rise Tuesday. The Camb=
ridge, Mass., developer of customer-management software enjoyed an even str=
onger second day yesterday, following Tuesday's release of better-than-expe=
cted third-quarter earnings of 12 cents a share, beating an analyst's estim=
ate by 10 cents a share. ?Pinnacle Systems rose 83 cents, or 25%, to 4.20. =
The Mountain View, Calif., video-production-system maker had a fiscal first=
-quarter loss of 11 cents a share before items, beating Wall Street expecta=
tions by eight cents a share. Thomas Weisel upgraded shares to `buy' from `=
market perform.' ?Sybase jumped 1.99, or 17%, to 13.50. The Emeryville, Cal=
if., online-software developer reported 20 cents a share in earnings before=
items, beating Wall Street's expectations by two cents a share. ?In a foll=
ow-on offering, AmeriPath gained 2.24, or 8.4%, to 29.04 after offering 4.1=
25 million shares at $26 each. The follow-on, as is the custom, was priced =
at a discount to Tuesday's close of 26.80. ?Merger activity had a positive =
effect on small caps. PRI Automation jumped 3.38, or 27%, to 15.92. The Bil=
lerica, Mass., semiconductor-equipment maker signed a definitive agreement =
to be bought by Brooks Automation for about $380 million in stock. Under th=
e accord, which was approved by both companies' boards, PRI shareholders wi=
ll receive 0.52 Brooks share for each PRI share held. Brooks Automation fel=
l 1.31, 3.9%, to 31.80. ?Vysis surged 7.26, or 31%, to 30.26. The Downers G=
rove, Ill., genetic-disease researcher agreed to be acquired by Abbott Labo=
ratories for $30.50 a share, or $355 million. Abbott rose 38 cents to 54.24=
. ?ONI Systems dropped 1.01, or 15%, to 5.62. The San Jose, Calif., maker o=
f fiber-optic communication equipment met analysts' third-quarter consensus=
estimate of 19 cents a share, excluding items, but said its fourth-quarter=
loss will range between 16 cents and 20 cents a share, on revenue of $40 m=
illion to $50 million, when analysts were expecting a loss of 16 cents a sh=
are, excluding items, on revenue of $50.1 million. Credit Suisse First Bost=
on cut shares to "buy" from "strong buy," and FAC Equities reduced the stoc=
k to "neutral" from "buy."??Copyright ? 2000 Dow Jones & Company, Inc. All =
Rights Reserved. =09????Financial Post: World?U.S. directors to be graded b=
y activist: The 'bond' treatment (Toronto edition headline.); Directors to =
get the bond treatment: Members of boards to be graded by shareholder activ=
ists (All but Toronto edition headline.)?Kevin Drawbaugh?Reuters??10/25/200=
1?National Post?National?FP12?(c) National Post 2001. All Rights Reserved.?=
?WASHINGTON - Directors of corporations will be graded according to their p=
erformance by a service expected to be launched soon by business research g=
roup The Corporate Library, the group's co-founder said yesterday. ?In a mo=
ve that could cause some sweaty palms in boardrooms across the country, lon=
g-time shareholder activist Nell Minow said directors will be awarded grade=
s of A, B, C and lower, based on meeting attendance and other benchmarks.?"=
It's always been my dream to rate individual directors like bonds. Director=
s have not had the scrutiny they deserve," said Ms. Minow, who said the ser=
vice will be called Board Analyst. ?Planned as an added feature on an exist=
ing Web site, thecorporatelibrary.com, Board Analyst is still in testing st=
ages but is expected to launch next year, she said. ?Only directors of U.S.=
companies will initially be evaluated. Non-U.S. directors may be added lat=
er. ?Ms. Minow and partner Robert Monks have written several books on corpo=
rate governance and shareholder rights. They formerly managed the Washingto=
n-based shareholder activist Lens Fund, which they sold last year to Britis=
h fund management group Hermes. ?Their latest venture may find a receptive =
audience on the institutional buy-side, said industry spokespersons. ?"Ther=
e's been growing interest within our membership in board membership, in gen=
eral, and individual directors, in particular. I definitely think there wou=
ld be interest in more information on individual directors," said Ann Yerge=
r, spokeswoman for the Council of Institutional Investors, which represents=
America's large pension funds. ?The corporate governance movement, since i=
ts beginnings in the 1970s, has focused on making directors more accountabl=
e and responsible. Many companies have responded by requiring more outside =
directors and more meaningful stock ownership among directors. But examples=
of lax board oversight still abound. ?One example would be Enron Corp., wh=
ose stock has plunged in recent days since the company said the Securities =
and Exchange Commission was investigating transactions involving certain ou=
tside partnerships and the company's chief financial officer, Ms. Minow sai=
d. ?"Where was the Enron board in all of this?" she asked. "Boards and outs=
ide consultants are supposed to vet ideas for partnerships like these. That=
apparently didn't happen here." ?Taking the corporate governance argument =
a step further, Ms. Minow argued that effective board membership is more th=
an a theoretical question. It should be an issue for investors to evaluate =
when they consider buying stock in a company. ?"This isn't just a corporate=
governance thing. This is part of investment analysis," she said. ?Institu=
tional investors routinely examine corporate management when analyzing stoc=
ks. Whether they will begin to examine directors, as well, remained an open=
question. ?"Nell and Bob Monks have been shareholder activists for a long =
time and have moved corporate governance in a positive direction," said Pet=
er Gleason, vice-president of research and development at the National Asso=
ciation of Corporate Directors, which represents more than 3,000 corporate =
directors. ?Surveys by the association recently showed that corporate direc=
tors rank self-evaluation high on their list of concerns. "More and more di=
rectors are saying this is something we should be doing," Mr. Gleason said.=
??Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09????UK=
: U.S. stocks drift in Europe as wary tone persists.??10/25/2001?Reuters En=
glish News Service?(C) Reuters Limited 2001.??LONDON, Oct 25 (Reuters) - U.=
S. stocks trading in Europe drifted sideways as investors awaited the U.S. =
reaction to an economic stimulus package announced on Wednesday, coupled wi=
th an uncertain mood in Europe before an interest rate decision. ?U.S. tech=
nology stocks hovered around their New York closing prices. Computer giant =
IBM traded on the Instinet electronic brokerage at $108.85, marginally up f=
rom its official close of $108.57, while dealers said network giant Cisco S=
ystems was quoted near to its close of $17.23.?Energy company Enron Corp. f=
ound some support in Europe after tumbling after the bell on Wall Street, a=
s the company said it replaced its chief financial officer, who had been li=
nked to transactions being looked at by the U.S. Securities and Exchange Co=
mmission. ?Dealers said Enron was bid in Europe at around Wednesday's regul=
ar close of $16.41, even though it fell to $16.14 on Instinet late on Wedne=
sday. "At least they (Enron) seem to have addressed the issue," one dealer =
in U.S. shares said. ?U.S. futures were mixed, as European bourses drifted =
prior to a decision on euro-zone interest rates at 1145 GMT. By 1034 GMT th=
e S&P 500 December futures contract was down 1.5 points at 1,083.5. ?One de=
aler said investors appeared to be holding back before assessing the impact=
of an economic stimulus package approved by Congress late on Wednesday. ?T=
he U.S. House of Representatives narrowly passed a package designed to inje=
ct $100 billion into the economy over the next year through business tax br=
eaks and other aid. ?Several companies reported results after New York's cl=
ose on Wednesday, but there was limited interest and values remained near t=
o their after-hours prices. ?Chiron Inc. surged to $48.37 from its close of=
$47 after the biotechnology firm posted higher earnings as product sales j=
umped 49 percent. ?Comverse Technology Inc. , a software and systems provid=
er, slumped to $16.60 in after-hours trading, from its close of $17.58, aft=
er warning its earnings would fall.??Copyright ? 2000 Dow Jones & Company, =
Inc. All Rights Reserved. =09???WORLD STOCK MARKETS - Wall St favours US te=
ch stocks over blue chips AMERICAS.?By MARY CHUNG.??10/25/2001?Financial Ti=
mes (U.K. edition)?(c) 2001 Financial Times Limited . All Rights Reserved??=
US technology stocks held on to small gains in morning trade but disappoint=
ing earnings results from Eastman Kodak and AT&T sent blue chips lower. ?By=
midsession, the Dow Jones Industrial Average was down 19.79 at 9,320.29 wh=
ile the S&P 500 index shed 1.08 to 1,083.70. The Nasdaq Composite rose 18.5=
8 at 1,723.02.?Dow components were dragged down by Eastman Kodak after the =
photographic film maker warned fourth-quarter profits would fall short of W=
all Street expectations. Shares tumbled 12 per cent at $13.10. ?AT&T added =
to the gloom after it reported a steep drop in profits because of the econo=
mic downturn, which has hit all areas of AT&T's operations. The stock dropp=
ed 6 per cent to $16.65. ?DuPont fell 1 per cent at $41.60. The chemical le=
ader said it faced the most challenging business environment in decades as =
it reported a sharp fall in third-quarter earnings. ?Energy stocks were the=
worst performing sector, with shares in Enron down 18.4 per cent at $16.15=
. The energy trading company is under scrutiny by the Securities and Exchan=
ge Commission and analysts about its accounting practices. ?El Paso dropped=
5 per cent, ExxonMobil 2 per cent and Phillips Petroleum 1 per cent after =
reporting weak earnings results. ?Technology stocks, however, gained with N=
extel up 9.7 per cent at $8.12 after the wireless company reported quarterl=
y earnings that topped market expectations. ?Leading technology stocks rose=
, with Cisco Systems up 2.5 per cent, Intel 2 per cent and Microsoft 1.6 pe=
r cent. ?Amazon, however, tumbled 20 per cent at $7.66 after several analys=
ts cut estimates for the online retailer. ?Compaq Computer slipped 0.7 per =
cent at $9.33 after it reported a third-quarter net loss that was in line w=
ith expectations but reduced its fourth-quarter guidance due to continued w=
eakness in corporate IT spending. ?Sears Roebuck edged up 0.7 per cent at $=
38.07 after the largest US department store chain said it would cut 4,900 j=
obs to increase profit by more than $1bn by 2004. ?AMR, the parent of Ameri=
can Airlines, dropped 1 per cent to $19.76 after it reported the largest qu=
arterly loss in its history. ?Toronto moved lower in early trading as a pro=
fits warning from top insurer Canada Life cast a cloud over financial stock=
s. ?Canada Life fell C$1.59 to C$40.11 after it warned that weak securities=
markets will cut into third quarter results. Bank stocks fell in sympathy =
with Royal Bank off 93 cents at C$44.82 and Bank of Montreal 52 cents at C$=
34.95. ?The S&P 300 composite index was 0.8 per cent lower at 6,849.80 at m=
idsession. ?(c) Copyright Financial Times Ltd. All rights reserved. ?http:/=
/www.ft.com.??Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserve=
d. =09???Enron replaces CFO Andy Fastow ?Announcement comes on heels of vot=
e of confidence ?CBSMarketWatch.com?Lisa Sanders?10/24/01?NEW YORK (CBS.MW)=
- One day after issuing a public vote of confidence in his chief financial=
officer, Enron Chief Executive Ken Lay ousted him Wednesday in the latest =
in a two-week series of events that have caused Enron shares to more than h=
alve.?Enron named Jeff McMahon its new chief financial officer Wednesday, r=
eplacing Andy Fastow. The move follows Tuesday's conference call, which was=
an attempt by Enron to restore investor confidence in the company.?"Andy F=
astow was a very well-regarded, low profile individual at Enron, and he's b=
een unfairly pilloried in the press," said John Olson, an analyst at Sander=
s Morris Harris in Houston. "But the weight of circumstantial evidence and =
the material stock price decline made this inevitable."?Olson predicted the=
CFO swap would improve Enron's credibility with Wall Street.?A rough week?=
Enron has been under fire since last week as questions have surfaced about =
its accounting practices, especially in regard to two limited partnerships =
created by Fastow in 1999 and since dissolved. ?Enron said Fastow had taken=
a leave of absence and that McMahon, most recently chairman and CEO of the=
industrial markets group and treasurer from 1998 to 2000, would take over.=
?"In my continued discussions with the financial community, it became clear=
to me that restoring investor confidence would require us to replace Andy =
as CFO," said Lay, in a statement.?Karen Denne, a spokesperson for Enron, s=
aid numerous discussions Tuesday and Wednesday led to the decision. She sai=
d she did not know when Fastow would return. ?Shares of Enron fell more tha=
n 17 percent Wednesday to $16.41, then fell further in late trading followi=
ng the announcement, to as low as $16.18. At one point during the trading d=
ay, the shares were trading at a six-year low of $15.51. ?Analysts deliver =
blows?Olson called Tuesday's conference call a "missed opportunity," saying=
Enron had a real opportunity to show the investing public that it had beco=
me more "forthright and open."?"Unfortunately Enron is overloaded with lawy=
ers," said Olson, who has not recommended the stock until recently. "This c=
ompany has been very much abused and maligned by people on Wall Street. The=
y have some excellent businesses, and they have been carrying some losers."=
Enron has "an excellent growth profile and tremendous profitability in the=
ir growth businesses, and excellent surplus cash flow," Olson said.?Enron e=
xpects to generate $3 billion of cash flow this year, and with $500 million=
devoted to dividends and $1 billion to maintenance capital spending, the c=
ompany will have $1.5 billion free.?Several Wall Street firms cut their rat=
ings on Enron shares Wednesday, including Prudential Securities. The firm a=
dvised clients to sell the stock, a rare recommendation. Prudential had rat=
ed the company's shares a "hold." ?"After much consideration, we are loweri=
ng our rating ... not because of things we know but because of things we po=
tentially don't know about the company," wrote Prudential analyst Carol Coa=
le in a note. ?On Monday, Enron announced that related-party transactions w=
ithin the limited partnerships are under review by the Securities and Excha=
nge Commission. Several shareholder lawsuits have subsequently been filed.?=
"Management used the SEC inquiry as a shield to avoid elaboration on the is=
sue at hand, the LJM transactions," Coale said in reference to the conferen=
ce call. ?Olson said it's unlikely that Enron, with its coterie of lawyers,=
would allow the creation of illegal investment vehicles, but as to whether=
it was "right," he conceded it was probably not.?J.P. Morgan's Anatol Feyg=
in downgraded his rating to "long-term buy" from "buy," saying an upgrade i=
s precluded until the company provides more information about its liabiliti=
es. ?"Management's conference call yesterday was a missed opportunity to di=
sclose the necessary information to assuage investor concerns," Feygin wrot=
e. ?Merrill Lynch analyst Donato Eassey noted Wednesday that if Enron isn't=
able to maintain its investment-grade ratings -- the company's debt is on =
watch for a potential downgrade by Moody's Investors Service -- issuing new=
equity would be one course of action, though with the potential to reduce =
earnings-per-share. Enron on Tuesday held with its forecast of $1.80 a shar=
e for 2001. ?"New equity would potentially dilute our EPS estimates 5 to 10=
percent," Eassey wrote in a follow-up to the conference call. ?But Eassey =
believes that cash flow from operations -- expected to exceed $3 billion in=
2002 -- along with asset sales, should be enough to "insulate" the company=
's credit ratings.?Lisa Sanders is a Dallas-based reporter for CBS.MarketWa=
tch.com.???USA: UPDATE 1-Beleaguered Enron names new CFO.?By Jeff Franks??1=
0/24/2001?Reuters English News Service?(C) Reuters Limited 2001.??HOUSTON, =
Oct 24 (Reuters) - Enron Corp. , trying to halt a freefall in its stock pri=
ce and a firestorm of criticism from Wall Street, named a new chief financi=
al officer on Wednesday to replace Andrew Fastow, who has been linked to tr=
ansactions now under investigation by government regulators. ?The company, =
which is the nation's largest energy trader, said Fastow would take a leave=
of absence and be replaced by Jeff McMahon, who has been running an Enron =
unit and is the company's former treasurer, in a bid to restore credibility=
with investors.?Fastow's departure follows the August resignation of chief=
executive Jeff Skilling, who said he wanted a change in lifestyle after ju=
st six months on the job. ?Wednesday's change came after Enron's stock fell=
$3.38 to $16.41, its lowest point in six years, to cap off a $13 billion p=
lunge in market value since the company announced a third quarter loss last=
week and wrote down shareholder equity by $1.2 billion in a move related t=
o the questionable transactions. ?Wall Street's anxieties about Enron sprea=
d to the stocks of other natural gas and power traders and marketers on Wed=
nesday, with Dynegy Inc. falling 12.8 percent to $37.26 and Aquila Inc. off=
11.7 percent at $21.20. ?Investors have fled Enron's stock in droves follo=
wing disclosures that the company did off-the-balance sheet transactions wi=
th two limited partnerships run by Fastow in deals the U.S. Securities and =
Exchange Commission is now looking into for possible conflict of interest. =
?Wall Street analysts who once touted the company have bitterly accused it =
of not being forthcoming about the matter, a problem Enron chief executive =
Ken Lay cited in his appointment of McMahon. ?"In my continued discussions =
with the financial community, it became clear to me that restoring investor=
confidence would require us to replace Andy as CFO," he said in a statemen=
t. ?McMahon, who was treasurer from 1998 to 2000 before becoming chief exec=
utive officer of Enron's Industrial Markets group, has a "deep and thorough=
understanding of Enron" and the confidence of the investment world, Lay sa=
id. ?The Wall Street Journal reported that it was McMahon who first spoke u=
p about the perception of impropriety in the limited partnership arrangemen=
ts made by Fastow. The paper this week said Skilling saw no problem with it=
, which led McMahon, 40, to ask for a job change. ?Fastow has denied any wr=
ongdoing, but has been limited in his ability to speak about the issues bec=
ause of the SEC investigation and shareholder lawsuits now pending against =
the company. ?As recently as a year ago, Enron had a stellar image as a cor=
porate innovator with a Midas touch. Its profits and stock price soared as =
it transformed from a natural gas pipeline company to a high-tech money mac=
hine creating new Internet-based trading markets in a wide range of commodi=
ties. ?But some of its new businesses faded, a large investment in an India=
n power plant went sour, the California power crises spooked investors, and=
then Skilling stunned the financial community with his sudden resignation.=
?There also was grousing from investors that Enron's earnings statements h=
ad become convoluted to the point of incomprehensibility. ?Analysts said th=
e replacement of Fastow was a step in the right direction for Enron, but no=
t a panacea for its credibility problems. ?"The problems investors are havi=
ng with Enron are related to a lack of understanding of all these partnersh=
ip arrangements. Changing the CFO by itself doesn't really address those co=
ncerns," said Mike Heim at A.G. Edwards. ?"I don't think anyone has a full =
understanding of the extent of the liabilities Enron might have with these =
partnerships," he said. "I still have a lot of questions." ?Andre Meade at =
Commerzbank Securities said Fastow's departure was not unexpected, but not =
that helpful. ?"Investors are not going to see this as a huge move that cle=
ars up the picture," he said. "Frankly, Ken Lay and the board don't have cl=
ean hands when it comes to these transactions." ?"The fear driving the mark=
et is: if this is what we know, how much worse can it get?" said J.P. Morga=
n analyst Anatol Feygin.??Copyright ? 2000 Dow Jones & Company, Inc. All Ri=
ghts Reserved. =09??USA: Utility stocks drop on slipping expectations.?By J=
im Brumm??10/24/2001?Reuters English News Service?(C) Reuters Limited 2001.=
??NEW YORK, Oct 24 (Reuters) - Slipping expectations of 2002 power profits =
combined with Enron Corp.'s growing problems helped drag utility stock pric=
es to their lowest levels this month on Wednesday. ?While the general marke=
t closed higher, the S&P Utilities Index ended the day with a loss of 8.99,=
or 3.55 percent, to 244.32.?The big loser, as it has been in many recent s=
essions, was Enron, which traded at the lowest price since February 1995 be=
fore steadying a bit to close at $16.41 - down 17.08 percent, or $3.38, for=
the day and 44 percent from its price two weeks ago - as analysts recommen=
ded selling the stock. ?Prudential's Carol Coale said the sell recommendati=
on was not made "because of things that we know, but because of things we p=
otentially do not know. ?After the close Enron said it named former treasur=
er Jeff McMahon to replace Andrew Fastow as chief financial officer, and qu=
oted chief executive officer Kenneth Lay as saying "it became clear to me t=
hat restoring investor confidence would require us to replace Andy as CFO."=
?Close behind Enron on the biggest loser lists Wednesday were companies th=
at had patterned themselves after the power trading giant. Closest was Dyne=
gy Inc. which closed with a loss of $5.45, or 12.76 percent, at $37.26 - it=
s lowest price in three weeks. ?POWER EARNINGS FORECASTS TRIMMED ?The talk =
of lower estimates of 2002 earnings from power production and trading came =
from four companies active in the U.S. Northeast and Midwest - American Ele=
ctric Power Co. Inc. , Exelon Corp. , Public Service Enterprise Group Inc. =
and PPL Corp. . ?Early Wednesday, PPL said it now sees little, if any, chan=
ge in earnings per share next year from this year, citing expectations of l=
ower profits on power sales in Maine, Pennsylvania and Montana. The company=
also confirmed it still sees 2001 earnings exceeding $4.00 per share. ?Not=
ing PPL's previous 2002 guidance was $4.55 to $4.65 per share, Wachovia Sec=
urities analyst Thomas Hamlin lowered the stock's rating to "market perform=
" from "strong buy" explaining PPL's "failure to differentiate itself from =
the power producing price takers has hurt management's credibility. ?"The c=
ompany will need to prove its risk management capabilities in order to be a=
fforded a multiple in line with our higher rated Merchant Power stocks," he=
concluded. ?Deutsche Banc Alex. Brown and Lehman Brothers made similar dow=
ngrades in Exelon after its first 2002 guidance trailed analyst expectation=
s. ?STOCK LOSSES FOLLOW OUTLOOK CHANGES ?"The primary driver (for the 2002 =
estimate) is lower wholesale commodity price assumptions at (the company's =
generation unit), in addition to weaker distribution demand" at Exelon's ut=
ility subsidiaries in Philadelphia and Chicago, Deutsche Banc Alex. Brown a=
nalyst James Dobson wrote Tuesday. ?Exelon officials noted, in answer to an=
alyst questions, that the view of 2002 demand had changed to negative from =
flat since the Sept. 11 attack on the World Trade Center. ?The company's st=
ock, which opened 10 percent lower - at $40 - following the earnings releas=
e early Tuesday steadied to close at $41.80. The shares continued to advanc=
e Wednesday when its 12-cent rise made it one of four gainers among the 40 =
S&P Utility Index components. ?The big loser among the integrated utilities=
- those which produce and distribute power - was PPL, which ended the day =
at $32 - down $1.68, or 4.99 percent. ?Losses of about 1.3 percent were pos=
ted by AEP, which closed at $42.59, down 55 cents for the day, and PSEG, wh=
ich slipped 52 cents to $39.48. ?AEP "management cautioned that the slowing=
economy may make the upper end (of its 2002 earnings guidance of $3.80 to =
$3.90) more difficult to achieve," Lehman Brothers analyst Daniel Ford wrot=
e in a note that maintained his estimate. ?He lowered his estimate of PSEG =
2002 earnings per share 5 cents to $4.05 while awaiting the closing of a Pe=
ruvian purchase and pointed out it receives more for electricity than most =
PJM power producers because of restraints on the delivery of Midwest electr=
icity to New Jersey's power hungry markets.??Copyright ? 2000 Dow Jones & C=
ompany, Inc. All Rights Reserved. =09??Berger & Montague Alleges Enron Misl=
ed Investors About Overvalued Assets And Off-Balance Sheet Deals??10/24/200=
1?PR Newswire?(Copyright (c) 2001, PR Newswire)??PHILADELPHIA, Oct. 24 /PRN=
ewswire/ -- The law firm of Berger & Montague, P.C., (http://www.bergermont=
ague.com) filed a class action suit on behalf of an investor against Enron =
Corp. ("Enron" or the "Company") (NYSE: ENE) and its principal officers and=
directors in the United States District Court for the Southern District of=
Texas on behalf of all persons or entities who purchased Enron securities =
during the period from March 30, 2000 through and including October 18, 200=
1, inclusive (the "Class Period"). ?The complaint alleges that Enron and it=
s principal officers and directors violated Section 10(b) and 20 (a) of the=
Securities Exchange Act of l934 and SEC Rule 10b-5. The complaint alleges =
that defendants misled investors (1) by reporting assets that were overvalu=
ed by more than $1 billion, which caused writedowns in that amount and are =
expected to lead to further writeoffs of hundreds of millions of dollars, (=
2) by concealing facts regarding relationships with a related entity that l=
ed to a more than $1 billion reduction of shareholders' equity and a $35 mi=
llion charge, and (3) by obfuscating or failing to disclose the fact that a=
greements with other related entities satisfaction of which include obligat=
ions that may require the Company to issue large amounts of its shares. Thi=
s misconduct caused the market prices of Enron stock to be artificially inf=
lated during the Class Period. When facts about these matters were disclose=
d at the end of the Class Period, the market price of the Company's per sha=
re stock fell from a high of $90 per share during the Class Period to a low=
of $15 per share, and securities analysts downgraded their ratings of the =
Company's stock despite the precurietous fall in its market price. Also, En=
ron's senior debt was placed on notice by Moody's for possible downgrade.?A=
lso, an SEC inquiry into the Company's transactions with related entities h=
as been announced, and the Company revealed that its Chief Financial Office=
r, who is one of the Defendants, has taken a "leave of absence" from the Co=
mpany, and has been replaced. ?If you purchased Enron securities during the=
period from March 30, 2000 through October 18, 2001, inclusive, you may, n=
o later than December 21, 2001 move to be appointed as a Lead Plaintiff. A =
Lead Plaintiff is a representative party that acts on behalf of other class=
members in directing the litigation. The Private Securities Litigation Ref=
orm Act of 1995 directs Courts to assume that the class member(s) with the =
"largest financial interest" in the outcome of the case will best serve the=
class in this capacity. Courts have discretion in determining which class =
members(s) have the "largest financial interest," and have appointed Lead P=
laintiffs with substantial losses in both absolute terms and as a percentag=
e of their net worth. If you have sustained substantial losses in Enron sec=
urities during the Class Period, please contact Berger & Montague, P.C. at =
[email protected] for a more thorough explanation of the Lead Plaintif=
f selection process. ?The law firm of Berger & Montague, P.C. has over 50 a=
ttorneys, all of whom represent plaintiffs in complex litigation. The Berge=
r firm has extensive experience representing plaintiffs in class action sec=
urities litigation and has played lead roles in major cases over the past 2=
5 years which have resulted in recoveries of several billion dollars to inv=
estors. The firm is currently representing investors as lead counsel in act=
ions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston C=
hicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P=
.C. in successfully conducting major securities and antitrust litigation ha=
s been recognized by numerous courts. For example: "Class counsel did a rem=
arkable job in representing the class ?interests." In Re: IKON Offices Solu=
tions Securities Litigation. ?Civil Action No. 98-4286(E.D.Pa.) (partial se=
ttlement for ?$111 million approved May, 2000). ?"...[Y]ou have acted the w=
ay lawyers at their best ought to act. ?And I have had a lot of cases...in =
15 years now as a judge and I ?cannot recall a significant case where I fel=
t people were better ?represented than they are here ... I would say this h=
as been the ?best representation that I have seen." In Re: Waste Management=
, ?Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) ?(set=
tled in 1999 for $220 million). ??If you purchased Enron securities during =
the Class Period, or have any questions concerning this notice or your righ=
ts with respect to this matter, please contact: Sherrie R. Savett, Esquire =
?Carole A. Broderick, Esquire ?Arthur Stock, Esquire ?Kimberly A. Walker, I=
nvestor Relations Manager ?Berger & Montague, P.C. ?1622 Locust Street ?Phi=
ladelphia, PA 19103 ?Phone: 888-891-2289 or 215-875-3000 ?Fax: 215-875-5715=
?Website: http://www.bergermontague.com ?e-mail: [email protected] ?M=
AKE YOUR OPINION COUNT - Click Here ?http://tbutton.prnewswire.com/prn/1169=
0X46856181???/CONTACT: Sherrie R. Savett, Esquire, Carole A. Broderick, Esq=
uire, Arthur Stock, Esquire, or Kimberly A. Walker, Investor Relations Mana=
ger, all of Berger & Montague, P.C., +1-888-891-2289, +1-215-875-3000, Fax,=
+1-215-875-5715 or [email protected]/ 18:38 EDT ?Copyright ? 2000 Dow=
Jones & Company, Inc. All Rights Reserved. =09???Enron Officers Profited F=
rom Inside Knowledge, Lawsuit Alleges?2001-10-24 19:58 (New York)??Enron Of=
ficers Profited From Inside Knowledge, Lawsuit Alleges?? Houston, Oct. =
24 (Bloomberg) -- Enron Corp. executives?profited from inside knowledge whe=
n they sold $73 million in?shares ahead of a 26 percent drop in the energy =
trading company's?stock in February and March, a shareholder alleges in a l=
awsuit.?? The allegations of insider trading were filed today as an?ame=
ndment to an earlier lawsuit filed by shareholder Fred?Greenberg.?? The=
original lawsuit, filed on Oct. 17 in Houston, accuses?Enron's board of co=
sting the company at least $35 million through?dealings with two partnershi=
ps run by former Chief Financial?officer Andrew Fastow.?? In the amendm=
ent filed today, the suit accuses Fastow of?using insider knowledge that En=
ron's stock was going to drop to?prevent losses at one of the partnerships,=
LJM2.?? The partnership was committed to buying Enron stock at?predete=
rmined price in September 2000, the complaint says. Enron?agreed to renegot=
iate the terms of the transaction to let LJM2 buy?the shares two months ear=
ly.?? That let the partnership earn a $10.5 million in profit, the?suit =
says. If the transaction had not been renegotiated, the?partnership would h=
ave lost $8 for every share it sold in?September, the suit alleges.?? =
`Bailed Out'?? ``Mr. Fastow and LJM2 took advantag=
e of inside information to?reap illicit insider trading profits, in the mil=
lions of dollars?in this transaction alone,'' the suit says.?? At the s=
ame time that the LJM2 transaction was being?renegotiated in December and J=
anuary, Chief Executive Officer?Kenneth Lay, President Mark Frevert and oth=
er top managers sold?the $73 million in shares, the suit alleges.?? Enr=
on executives ``bailed out of shares... reaping huge?insider trading profit=
s,'' the lawsuit says.?? Other sellers included former CEO Jeff Skillin=
g, Chief?Strategy Officer Cliff Baxter, broadband services CEO Ken Rice,?Ch=
ief of Staff Steve Kean, pipeline group CEO Stanley Horton and?Chief Risk O=
fficer Richard Buy, the suit says.?? Enron spokeswoman Karen Denne decl=
ined to comment on the?lawsuit.?? ``We haven't been served (notice of t=
he suit), and it's our?policy not to talk about pending litigation,'' she s=
aid?? In March, spokesman Mark Palmer said the executives exercised?sto=
ck options that would have expired worthless otherwise.?? Enron has for=
med at least 18 affiliated companies to buy and?sell company assets, accord=
ing to records from the Texas secretary?of state. The Houston-based company=
reported $1.01 billion in?third-quarter losses, including $35 million from=
the LJM?partnerships run by Fastow.?? SEC Inqui=
ry?? Greenberg says directors shouldn't have allowed Fastow to run?part=
nerships that bought and sold company assets.?? Shares of Enron have fa=
llen 52 percent in the past six days?on investor concern about the liabilit=
ies attached to partnerships?and affiliated companies formed by Enron to re=
move debt from its?books. The U.S. Securities and Exchange Commission is lo=
oking into?the partnerships.?? Enron shares fell $3.38 to $16.41.??--Ru=
ssell Hubbard in the Princeton newsroom, 609-750-4651 or?rhubbard2@Bloomber=
g.net/slb/alp??Enron Ousts Fastow, Names McMahon CFO Amid Inquiry (Update5)=
?2001-10-24 19:33 (New York)??Enron Ousts Fastow, Names McMahon CFO Amid In=
quiry (Update5)?? (Adds description of Enron Net Works in sixth paragra=
ph.)?? Houston, Oct. 24 (Bloomberg) -- Enron Corp. ousted Chief?Financi=
al Officer Andrew Fastow amid a Securities and Exchange?Commission inquiry =
into partnerships he ran that cost the largest?energy trader $35 million.??=
Enron named Jeff McMahon, head of its industrial markets?group, as CFO=
because ``it became clear to me that restoring?investor confidence would r=
equire us to replace Andy,'' Chairman?and Chief Executive Officer Kenneth L=
ay said in a statement.?Fastow will take a leave of absence.?? Shares o=
f Enron, based in Houston, have fallen 80 percent?this year. Third-quarter =
losses of $1.01 billion from failed?investments outside the main commoditie=
s trading business wiped?out 70 percent of the profit earned in the past fo=
ur quarters.?? ``Investors were clearly not comfortable with exposure t=
o?Andy,'' said J.P. Morgan analyst Anatol Feygin, who downgraded?Enron to `=
`long-term buy'' today and owns no shares.?? As Enron treasurer, McMaho=
n complained to then-Enron?President Jeffrey Skilling about potential confl=
icts of interest?posed by the Fastow partnerships in 1999, the Wall Street =
Journal?reported yesterday. Rebuffed, McMahon secured a reassignment, the?J=
ournal said, citing people familiar with the matter.?? ``McMahon was ma=
de famous under Skilling by going to him and?objecting to the partnerships,=
'' Feygin said. ``For that, he was?transferred out of the treasurer functio=
n into Enron Net Works,''?which oversees Enron's Internet trading system.??=
`An Outstanding Job'?? Fastow, 39 years old, ran=
LJM Cayman and LJM2 Co-Investment,?two partnerships created by Enron to bu=
y company assets. Enron's?involvement in the financing vehicles cost the co=
mpany $35 million?in third-quarter losses. Enron also bought back 62 millio=
n shares?from LJM2 at a cost of $1.2 billion to unwind its investment.?? =
On a conference call yesterday, Lay said that ``I and Enron's?board of di=
rectors continue to have the highest faith and?confidence in Andy and think=
he's doing an outstanding job as?CFO.''?? Enron announced that Fastow=
would leave after its stock?closed down $3.38, or 17 percent, to $16.41 in=
today's trading.?? The SEC began an inquiry into Enron's partnerships=
Monday.?Spokeswoman Karen Denne said it is an informal inquiry that Enron?=
is cooperating with, and that no subpoenas have been received.?? The co=
mpany has formed at least 18 affiliated partnerships?and corporations, some=
of which buy and sell Enron assets such as?power plants, records at the Te=
xas secretary of state's office?indicate.?? The Texas records list doze=
ns of Enron executives as officers?and directors of company-related partner=
ships. None of them have?any financial interest in the partnerships after F=
astow severed?ties to the LJM partnerships in July, Palmer said.?? =
`Zero Compensation'?? ``The managers in these affiliates=
listed as managing members?are representational in nature only,'' he said.=
``They get zero?compensation.''?? The LJM partnerships were different.=
Enron's board allowed?Fastow, who has worked for the company for 11 years,=
to run them?and earn as much as 2 percent annually on the amounts invested=
,?the Wall Street Journal reported last week. A lawsuit filed by a?sharehol=
der objecting to the arrangement said the partnerships?reworked an agreemen=
t with Enron to avoid taking big losses.?? Enron is obligated to repay =
$3.3 billion associated with two?other partnerships, Marlin and Whitewing, =
if they can't raise?enough money from asset sales to pay off the balance, E=
nron?spokesman Mark Palmer said. Palmer said ``maybe, maybe not'' when?aske=
d if the partnerships will generate enough cash.?? ``The concern now is=
n't just with the LJM partnership, it's?more with the other partnerships, s=
uch as Osprey and Marlin,''?said A.G. Edwards analyst Mike Heim, who has a =
``hold'' rating on?Enron and owns no shares.?? High L=
evel Departures?? Enron has lost several senior executives in the past =
two?years. CEO Skilling resigned in August after seven months on the?job, c=
iting personal reasons and frustration with declines in the?company's stock=
price. Enron Corp. Vice Chairman Joseph W. Sutton?left the company in Nove=
mber as the company switched its focus?from developing assets to energy and=
commodity trading.?? Rebecca Mark, one of the highest-ranking women in=
U.S.?business, quit August 2000 as chairman and chief executive of?Azurix =
Corp., a water company formed by Enron Corp. Mark also?resigned from Enron'=
s board.?? Azurix was a money-losing investment. Enron sold shares in?t=
he water company to the public that it later had to buy back.??--Russell Hu=
bbard in the Princeton newsroom at 609-750-4651??
| ||
arnold-j/deleted_items/485.
|
subject: Enron Net Works and Enron Global Strategic Sourcing announce new
content: As you know, Enron Net Works (ENW) and Enron Global Strategic Sourcing (GSS) recently executed a two-year agreement, whereby MCI WorldCom would serve as Enron's primary telecommunications provider. In our previous communication, we indicated that we would provide you with more detailed information as it became available.
Beginning Friday, October 26, 2001 at 9 a.m. C.S.T, the procedure for calling Enron's Houston offices from international locations, excluding Canada, using the 800-97-Enron phone number will change. The new procedure is as follows:
1. Please dial the WorldPhone International Access number for the country where you are located (country access code), which is available on the attached wallet card, accessible through the following link: http://home.enron.com:84/messaging/mciannouncement.doc.
2. You will then be prompted for your PIN number. Since calling cards and pin numbers are not required to use this service, all users should respond by dialing 1-800-97-ENRON or 1-800-973-6766.
3. You will then be asked to enter your destination. Please dial 0-800-97-Enron (800-973-6766) to reach Enron's corporate offices in Houston.
This procedure can only be used to call 800-97-Enron from WorldPhone International locations. If you are calling from the U. S. or Canada, please continue to dial 1-800-97-ENRON.
If you have questions regarding commercial aspects of this agreement, please feel free to contact Tom Moore, GSS senior contract manager at 713-345-5552. For technical issues, please contact Hasan Imam, ENW IT manager at 713-345-8525.
|
All Enron Worldwide@ENRON <??SAll Enron Worldwide@ENRON>
|
|
arnold-j/deleted_items/489.
|
subject: Our BIGGEST Sale ever + Sassicaia, Snowden & more!!
content: To Place an order . . .
PLEASE CALL 973-376-0005 ask for Order Dept.www.winelibrary.com
or e-mail us at [email protected]
The countdown to our Customer Appreciation Sale is on!!! - On Friday, October 25th at 11 AM, Wine Library.com will launch it's biggest Customer Appreciation Sale in history, slashing prices from 25-50%!!!! In an effort to make room for inventory this holiday season, we are dramatically cutting prices on some extraordinary wine from around the world. The sale will begin on our website, www.winelibrary.com, at 11 AM. Look for the banner on the front of the home page, click and start saving!
Key points
-Starts tomorrow @ 11 am on the website
-If you are coming to the store look for the yellow sale tags
-Remember, if you are coming to the store on Saturday, there is plenty of parking available in our new, expanded parking lot!!! (You can park in the old Burger King parking lot!)
-Many items are down to just a few bottles, so when you order a case don't be surprised if we only have 8 bottles
-The sale will last only a few weeks, until we clear inventory
***************************
1. #16309 - Sassicaia 1998 - $139.99 On Sale
95 Points - Wine Spectator
"Lovely, subtle yet complex aromas of rants, sage and green olives lead to a full-bodied red with a solid core of fruit and well-integrated tannins. Still very reserved on the finish, but those who are patient should be rewarded. Cabernet Sauvignon and Cabernet Franc. Best after 2005"Have your own tasting notes? Post your own review of this wine on Wine Library.com!
2. #16193 - Snowden 1997 Cabernet Sauvignon - $59.99 On Sale
93 Points - Wine Spectator
"A dark, rich and firmly tannic mouthful of currant, anise, cedar, tar and herbal flavors, this deeply concentrated Cabernet is one for the cellar. An immense wine that reminds me of a barrel sample; patience required. Best from 2004 through 2010. "Have your own tasting notes? Post your own review of this wine on Wine Library.com!
3. #11408 - I Giusti & Zanza 1999 Belcore- $24.99 (Only $19.99 when you buy a case)
91 Points - Robert Parker
"The 1999 Belcore is a 3,000 plus-case cuvee of 90% Sangiovese and 10% Merlot aged in large, 300 liter barrels. Its dense purple color is followed by a sexy, open-knit nose offering explosive aromas of pain grille, blackberry, and cherry liqueur intermixed with currants. Spicy, fleshy, full-bodied, rope, and seductive, it will drink well for 5-6 years."Have your own tasting notes? Post your own review of this wine on Wine Library.com!
4. #16394 - Sportoletti 1998 Bianco - $29.99 (Only $23.99 when you buy a case)
93+ Points - Gary Vaynerchuk - Wine Library
"This may be the best effort for an Italian white wine I have had in a long,long time.The complexity that this wine shows is almost stunning. If you enjoy great White Burgundies then this is your Italian counterpart ! This wine is also straw colored with crisp apple and lemon aromas. Medium bodied with fresh acidity, finishes with hints of vanilla.A blend of Grechetto & Chardonnay this is the white version to the Rosso that just scored 96 points Robert Parker.Have your own tasting notes? Post your own review of this wine on Wine Library.com!
5. #11885 - Paul Jaboulet 1999 Hermitage "La Chapelle" - $96.99 On Sale
93-95 Points - Stephen Tanzer
"Saturated medium ruby. Deep, highly concentrated aroma of black fruits, bitter chocolate, shoe polish and humus. Thick but bright on entry, then quite full and consistent through to the very long whiplash of a finish. Really stuffed with fruit, and beautifully balanced. Dense flavors of cassis, violet, bitter chocolate and Cuban tobacco. Substantial ripe tannins are thoroughly buffered by the wine fat. A great showing today. Jaboulet used helicopters to dry the fruit after the showers, then picked quickly." Have your own tasting notes? Post your own review of this wine on Wine Library.com!
6. #16407 - Le Corti 1998 Don Tommaso Chianti - $21.99 (Only $17.59 when you buy a case)
91 Points - Wine Spectator
"Intense aromas of berries, cherries and tobacco. Full-bodied, with loads of fruit, velvety tannins and a long, flavorful finish. Drink now through 2006." Have your own tasting notes? Post your own review of this wine on Wine Library.com!
7. #11121 - La Viarte 1999 Pinot Grigio - $13.99 On Sale
91 Points - Wine Library
This is the best Pinot Grigio we have ever tasted, period ! The La Viarte is the most interesting Pinot Grigio this staff has ever tasted, big massive ripe fruit and soft complex fruit flavors dominate the wines inner core.La Viarte is also a wine that can be drank with food or by itself.If you are a fan of complex white wines this is for you !!!!!Have your own tasting notes? Post your own review of this wine on Wine Library.com!
8. #15581 - Terriccio Tassinaia 1997 - $47.99 On Sale
92 Points - Wine Library
Massive fruit and complexity on the finish is the 2 key components to this wine. 1997 as many of you know is one of the greatest vintages in Italian red wine history. Terriccio is a great producer of wines and the Tassinaia is a great example of the quality of the vintage. If you are looking for that last great 1997, this is it !Have your own tasting notes? Post your own review of this wine on Wine Library.com!
| ||
arnold-j/deleted_items/49.
|
subject: Move Request Submission
content: Move Request number 9770 has been submitted to the move team for processing.
| ||
arnold-j/deleted_items/490.
|
subject:
content: You sold 700 TAS futures with floor broker Paribas...I gave them up to EDF MAN #5055
You bought 200 LD Swaps @ tonight's SP from CMS
You bought 700 LD Swaps @ tonight's SP from Engage Canada
Thanks.
| ||
arnold-j/deleted_items/491.
|
subject: Important Announcement Regarding Document Preservation
content: As you know, Enron, its directors, and certain current and former officers are defendants in litigation in Federal and State court involving the LJM partnerships.
Enron has employed counsel and they will represent Enron and its interests in the litigation.
Under the Private Securities Litigation Reform Act, we are required to preserve documents that might be used in the litigation.
Accordingly, our normal document destruction policies are suspended immediately and shall remain suspended until further notice.
Please retain all documents (which include handwritten notes, recordings, e-mails, and any other method of information recording) that in any way relate to the Company's related party transactions with LJM 1 and LJM 2, including, but not limited to, the formation of these partnerships, any transactions or discussions with the partnerships or its agents, and Enron's accounting for these transactions.
You should know that this document preservation requirement is a requirement of Federal law and you could be individually liable for civil and criminal penalties if you fail to follow these instructions.
You should know that Enron will defend these lawsuits vigorously. In the meantime, you should not discuss matters related to the lawsuits with anyone other than the appropriate persons at Enron and its counsel.
If you have any questions, please contact Jim Derrick at 713-853-5550.
|
All Enron Worldwide@ENRON <??SAll Enron Worldwide@ENRON>
|
|
arnold-j/deleted_items/492.
|
subject: IMPORTANT-To All Domestic Employees who Participate in the Enron
content: If you are a participant in the Enron Corp. Savings Plan, please read this very important message.
We understand that you are concerned about the timing of the move to a new Savings Plan administrator and the restricted access to your investment funds during the upcoming transition period scheduled to take place beginning at 3:00PM CST on October 26 and ending at 8:00AM CST on November 20.
We have been working with Hewitt and Northern Trust since July. We understand your concerns and are committed to making this transition period as short as possible without jeopardizing the reconciliation of both the Plan in total or your account in particular.
Remember that the Enron Corp. Savings Plan is an investment vehicle for your long-term financial goals. The Enron plan will continue to offer a variety of investment opportunities with different levels of risk.
As always, we advise you to review your overall investment strategy and carefully weigh the potential earnings of each investment choice against its risk before making investment decisions that are aligned with your long-term financial plans and your risk tolerance.
For that reason, it is critical that ALL trades among your investment funds be completed by 3:00 PM CST Friday, October 26 before the transition period begins.
|
All Enron Employees United States Group@ENRON <??SAll Enron Employees United States Group@ENRON>
|
|
arnold-j/deleted_items/493.
|
subject: Upcoming Wellness Activities
content: CPR and First Aid Certification
CPR and First Aid certification is being offered on Thursday, November 15, 2001, from 1:30 p.m. - 5:30 p.m. in the Body Shop, Studio B. Cost is $10 for employees and EDS; $40 for contractors. To register or for more information contact mailto:[email protected]. Registration deadline is Monday, November 12.
Mammogram Screening
The M. D. Anderson Mobile Mammography van will be at Enron November 12-16, 2001, from 8 a.m. - 4 p.m. Cost is $25 for Enron employees, spouses, retirees and EDS; $85 for Contractors. Payment must be made by check or money order ONLY, payable to Enron Corp., and is due at time of service. NO CASH WILL BE ACCEPTED. Appointments can be made by calling 713-745-4000. For more information about M. D. Anderson's mobile mammography program: http://www.mdanderson.org/Departments/MobileMamm/dIndex.cfm?pn=29C87A2E-B66A-11D4-80FB00508B603A14.
Please consider adding an extra $1 to the mammogram cost for The Rose. The Rose is a non-profit organization that provides mammograms to women without access to medical insurance. http://www.the-rose.org/. Other inquiries can be directed to: mailto:[email protected].
|
All Enron Downtown@ENRON <??SAll Enron Downtown@ENRON>
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arnold-j/deleted_items/494.
|
subject: <i>Membership Rewards</i> October Travel Update for JENNIFER
content: ---------------------------------------------------------------------------------
Special Offers for MEMBERSHIP REWARDS
Enrollees from American Express
October 25, 2001
---------------------------------------------------------------------------------
DESTINATION: HOME
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the Delta Connection carriers and is subject to capacity controls
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your Delta SkyMiles account. All standard Delta program rules and
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To transfer MEMBERSHIP REWARDS points to the Delta SkyMiles program,
copy and paste the following URL address into your browser:
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SkyMiles members: For more information about this and other awards:
visit delta.com or call Delta reservations at 1-800-323-2323.
To enroll in the SkyMiles program, visit delta.com or call 1-800-221-1212.
-----------------------------------------------------------------------------
EARN UP TO 5,000 OnePass
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To transfer MEMBERSHIP REWARDS points to your OnePass account, copy and
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To book a trip or to register for this offer, copy and paste the following URL
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Visit the Web site for complete details.
-----------------------------------------------------------------------------
US AIRWAYS MILEAGE BONUS WHEN YOU TRANSFER Membership Rewards POINTS
Earn Dividend Miles faster! From 10/25/01 through 11/16/01,
you will receive a 20% mileage bonus for all MEMBERSHIP REWARDS points
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AMERICAN EXPRESS AND SOUTHWEST AIRLINES JOINING TOGETHER TO KEEP AMERICA
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To transfer MEMBERSHIP REWARDS points to the Rapid Rewards Program, copy
and paste the following URL address into your browser:
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If you are interested in receiving the latest news and information on
Southwest and Rapid Rewards, go to southwest.com to subscribe to the
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You must present your Rapid Rewards membership card upon check-in. All
Rapid Rewards rules apply.
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If you were sent this e-mail in error or you wish to unsubscribe to this
newsletter, please use this address in your communication to us. If
you do not want to receive this monthly publication, please click
the reply button and type the word "remove" in the subject line of
your response. This option will not affect any preferences you may
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you want to receive.
---------------------------------------------------------------------------------
? 2001 American Express
| ||
arnold-j/deleted_items/497.
|
subject: If You Had Only Known Money Management Were This Easy...
content: [IMAGE]=09[IMAGE]=09
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ft alert service [IMAGE] [IMAGE] [IMAGE] [IMAGE] =09 =09 [IMAGE] [IMA=
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y cut and paste this URL into your browser: http://info.citibankcards.com/c=
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arnold-j/deleted_items/498.
|
subject: Nat Gas market analysis for 10-26-01
content: Attached please find the Natural Gas market analysis for today.
Thanks,
Bob McKinney
- 10-26-01 Nat Gas.doc
| ||
arnold-j/deleted_items/499.
|
subject: ALL daily charts and matrices as hot links 10/26
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. ? 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude20.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas20.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil20.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded20.pdf
Dec WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clz-qoz.pdf
Dec Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf
Dec Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf
Dec/May Heat Spread http://www.carrfut.com/research/Energy1/hoz-hok.pdf
Jan/Feb Heat Spread http://www.carrfut.com/research/Energy1/hof-hog.pdf
Nov Gas/Heat Spread http://www.carrfut.com/research/Energy1/hux-hox.pdf
Dec Gas/Heat Spread http://www.carrfut.com/research/Energy1/huz-hoz.pdf
Nov/Mar Unlead Spread
http://www.carrfut.com/research/Energy1/hux-huh.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG20.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG20.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL20.pdf
Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606
| ||
arnold-j/deleted_items/5.
|
subject: Move Date
content: Our move date is set for Friday, 11/9/01. At this time they will be moving the gas trading group to the 6th floor and the gas operations group to the 5th floor. They will follow with the power groups on the following Friday, 11/16/01.
Assistants: Please be ready to submit a churn on this Friday 10/5/01 for your individual groups (I will let you know if this changes and once I am certain of the seat numbers for your groups, I will give them to you). I will also need to give you your mail stop locations at the new building, which I am working on now with the mailroom. In the meantime, from now till we move, please start cleaning up your areas and your groups areas and discarding anything that isn't needed. It has been requested that only 6 boxes per person be moved because space is limited. So we need to decide what can be sent to archives. I will send you some forms for this. Please come to me with any questions.
Deskheads: Unless, there is any changes from the office of the chair, I will set up a meeting with each one of you on Thursday to make sure you have no changes to your seating. Once the churn is submitted there can not be any changes other than new additions to the group or deletions from the group. This is to prevent there being any mixups when installing equipment at the new building.
-Ina Rangel
| ||
arnold-j/deleted_items/50.
|
subject: TRV Notification: (NG - Price P/L - 10/05/2001)
content: The report named: NG - Price P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=10&report_name=NG+-+Price+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y¤t_efct_date=10/05/2001>, published as of 10/05/2001 is now available for viewing on the website.
| ||
arnold-j/deleted_items/500.
|
subject: daily charts and matrices as hot links 10/26
content: The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. ? 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude20.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas20.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil20.pdf
Unleaded chart to follow.
Dec WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clz-qoz.pdf
Dec Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf
Dec Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf
Dec/May Heat Spread http://www.carrfut.com/research/Energy1/hoz-hok.pdf
Jan/Feb Heat Spread http://www.carrfut.com/research/Energy1/hof-hog.pdf
Nov Gas/Heat Spread http://www.carrfut.com/research/Energy1/hux-hox.pdf
Dec Gas/Heat Spread http://www.carrfut.com/research/Energy1/huz-hoz.pdf
Nov/Mar Unlead Spread
http://www.carrfut.com/research/Energy1/hux-huh.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG20.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG20.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL20.pdf
Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606
| ||
arnold-j/deleted_items/501.
|
subject: TRV Notification: (NG - Price P/L - 10/25/2001)
content: The report named: NG - Price P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=10&report_name=NG+-+Price+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y¤t_efct_date=10/25/2001>, published as of 10/25/2001 is now available for viewing on the website.
| ||
arnold-j/deleted_items/502.
|
subject: TRV Notification: (NG - PROPT P/L - 10/25/2001)
content: The report named: NG - PROPT P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=11&report_name=NG+-+PROPT+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y¤t_efct_date=10/25/2001>, published as of 10/25/2001 is now available for viewing on the website.
| ||
arnold-j/deleted_items/503.
|
subject: RE:
content: John,
Thank you.
Veronica
-----Original Message-----
From: Arnold, John
Sent: Friday, October 26, 2001 8:47 AM
To: Gonzalez, Veronica
Subject:
Veronica:
Deutsche Bank asked me to ask you to call their maintenance margin person, John Jones, at 212 469 6773. I think they are trying to margin us.
John
| ||
arnold-j/deleted_items/504.
|
subject: Nov 6th meeting @ 8:30 a.m.
content: Sorry for the confusion. The meeting on November the 6th will be
at 8:30 a.m. Please see the attachment for more information.
Thank you.
The following section of this message contains a file attachment
prepared for transmission using the Internet MIME message format.
If you are using Pegasus Mail, or any another MIME-compliant system,
you should be able to save it or view it from within your mailer.
If you cannot, please ask your system administrator for assistance.
---- File information -----------
File: lastNov 6th2001 announcement formatted2.doc
Date: 26 Oct 2001, 10:08
Size: 31232 bytes.
Type: Unknown
- lastNov 6th2001 announcement formatted2.doc
| ||
arnold-j/deleted_items/505.
|
subject: IDRC/NACORE Nov 6th Event
content: IDRC and NACORE would like to invite you to their November 6th,
2001 meeting at the Doubletree Post Oak. The program theme will
be "Emergency Preparedness" and will begin at 8:30 p.m. Please
see you attachment for your invitation and more information on
location, agenda, panel and registration. Thank you and we hope
to see you their.
The following section of this message contains a file attachment
prepared for transmission using the Internet MIME message format.
If you are using Pegasus Mail, or any another MIME-compliant system,
you should be able to save it or view it from within your mailer.
If you cannot, please ask your system administrator for assistance.
---- File information -----------
File: lastNov 6th2001 announcement formatted2.doc
Date: 26 Oct 2001, 10:08
Size: 31232 bytes.
Type: Unknown
- lastNov 6th2001 announcement formatted2.doc
| ||
arnold-j/deleted_items/506.
|
subject: The Daily Quote
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[IMAGE]=09 =09=09=09=09[IMAGE] [IMAGE] Market Outlook Bear Up Unde=
r Pressure By:Adam Martin Stocks are mixed as we get the afternoon rollin=
g. Both indexes have been searching for direction through most of the sess=
ion as conflicting forces have Wall Street in a tizzy, but the DJIA seems t=
o have some solid gains. Upward pressure was provided by an uptick in cons=
umer confidence in October, the last bastion of strength in a dragging econ=
omy. Weakness in consumer spending could have seriously hurt Wall Street a=
s the indexes have risen to their highest levels since September 11th. That=
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ch Baker Hughes (NYSE:BHI) Q3 earnings more than double Baker Hughes In=
c, the world's third-biggest oilfield services company, said on Friday its =
third-quarter net earnings more than doubled despite lower crude oil and na=
tural gas prices. Duane Reade third-quarter earnings rise 3 percent Duane =
Reade Inc. (NYSE:DRD), a drugstore chain with a large number of stores in =
New York, on Friday said its third-quarter profits rose just 3 percent as t=
he Sept. 11 attacks disrupted business and hurt sales growth of consumables=
such as cosmetics and snacks. Lockheed 3rd-quarter net rises Lockheed Mar=
tin Corp. (NYSE:LMT), the nation's largest defense contractor, on Friday po=
sted a rise in third-quarter earnings, excluding special items, as cost con=
trols kicked in and sales rose. JDS Uniphase Posts $1.2B Loss JDS Uniphase=
Corp.'s first-quarter loss grew 20 percent as the optical networking equip=
ment maker continued to struggle through the economic slowdown. Amgen thir=
d-quarter earnings rise 5 percent Amgen Inc. (NASDAQ:AMGN), the world's l=
argest biotechnology company, said on Thursday its net income rose 5 percen=
t in the third quarter, excluding a year-ago gain, driven by single-digit s=
ales growth for its anemia and immunity-boosting drugs. - - - - - MORE Bre=
aking News [IMAGE] [IMAGE] [IMAGE]=09[IMAGE]=09
=09=09=09 [IMAGE] Your Watch List News ECOM News ECOMETRY CORP FI=
LES FORM DEFA14A (*US:ECOM) EDGAR Online: 10/26/2001 08:10 ET Ecometry acc=
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T - - - - - MORE [IMAGE] AVNT News A bubble is building in small, obscure=
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r Third Quarter - Revenue Surpasses $100 Million PR Newswire: 10/25/2001 1=
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ources Reports Strong Third Quarter Results; EPS Beats Consensus Expectatio=
ns by 14 Percent BusinessWire: 10/24/2001 16:14 ET Online Resources Conver=
ts Portion of Convertible Debt; Company Confirms Earnings Guidance for Thir=
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27 ET - - - - - MORE [IMAGE] PTN News Palatin Technologies' PT-141 Incre=
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o Generate Compounds Using Palatin's MIDAS Drug Design Technology Busines=
sWire: 10/01/2001 07:39 ET - - - - - MORE [IMAGE] DGIN News Digitial Insi=
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nces EBITDA Profitability, Exceeds Consensus EPS PR Newswire: 10/25/2001 1=
6:14 ET Digital Insight Announces AXIS DeskTopLender PR Newswire: 10/18/20=
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gains after rally Reuters: 10/25/2001 18:14 ET UPDATE 1-Overture reports Q=
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arnold-j/deleted_items/507.
|
subject: There's Still Time to See America at Great, Low Weekend Rates!
content: =09=09=09[IMAGE]=09=09
=09=09=09=09[IMAGE]=09
[IMAGE]=09[IMAGE][IMAGE] Go Work Go PlayGo USA Click here to book online=
today From sea to shining sea, with over 300 unique destinations, we'v=
e got you covered. There's still time to See America with Starwood Hotels =
& Resorts. Stay at Westin
, Sheraton
, Four Points
by Sheraton, St.Regis
, The Luxury Collection
and W hotels
and take advantage of $49 to $179 weekend rates (Thurs-Sun) and savin=
gs of up to 40% on weekday rates (Mon-Wed) from now until January 27, 2002=
. Book at www.starwood.com to take advantage of these and other special =
rates and earn 500 bonus Starpoints with every online booking or call 1 87=
7-782-0114 and mention promotion code GOUSA. Please note, the promotion co=
de is not required for online booking. Visit starwood.com and book now. =
Terms & Conditions Offer is valid at participating hotels only. The St. =
Regis New York and St. Regis Club at the Essex House in New York and Hawai=
i hotels do not participate in this promotion. When reserving by phone, c=
all 1-877-782-0114, for weekend promotion you must request promotion code G=
O USA. Weekend rates are for single or double occupancy per night and are =
available Thursday-Sunday only with a Friday and/or Saturday night stay re=
quired from 10/5/01-1/27/02. Weekend reservations must be made between 10/5=
/01-1/27/02. A limited number of rooms may be available at these rates. Not=
to be combined with other offers. Weekday savings of up to 40% are based o=
n comparisons of rates quoted for select dates and locations midweek (Mon-W=
ed) from 10/5/00-1/27/01. Percentages may vary by market. Rates are subject=
to availability based on occupancy. Blackout dates may apply at some prope=
rties. Advance reservations are required. All rates are quoted in U.S. Doll=
ars. Rates are based on standard room type, and do not include taxes, gratu=
ities, or additional charges. Additional temporary energy charge plus appli=
cable tax per room/per night may apply. Offer is not available to groups. C=
hildren under 17 stay free in parent's room, using existing bedding. Certai=
n restrictions apply. See Web site for details. Starwood Hotels & Resorts i=
s not responsible for typographical errors. For Starwood Preferred Gues=
t members: room upgrade to a Preferred room based on availability at check=
-in. 4pm checkout is subject to availability at resorts. ? 2001 Starwood=
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arnold-j/deleted_items/508.
|
subject: Rare Petrus and Turley at winebid.com
content: Welcome to winebid.com's newest auction, which includes a special auction of
rare wines from Turley Wine Cellars. Both auctions begin closing Sunday,
Nov. 4, at 9 p.m. U.S. Eastern Time.
Turley Wine Cellars makes some of California's most admired wines and we are
pleased to offer new releases and library wines from 1994 - 1998, including
never-before-released magnums. We have Petite Syrah, Zinfandel and 1998
Alban Vineyard Roussanne, a new release made of 100 percent Alban Vineyard
fruit.
Find them here: http://www.winebid.com/home/spotlight1.shtml
If a king-sized bottle of wine fit for a king is what you're looking for,
find the Imperial of Petrus 1982 offered here. It's part of a stunning
collection of wines from California, France and Australia, most of which
earned at least 95 points from critics. Included are many vintages of Petrus
from 1971-1997, including Petrus 1990, a Parker perfect 100-point wine.
Other Parker 100s offered are Lafite- Rothschild 1982 and Bryant Family
Vineyard Cab 1997.
Find them here: http://www.winebid.com/home/spotlight4.shtml
Tuscans are hot. Find them here from the extraordinary 1997 vintage, along
with stars from the Piedmont. This collection of top-ranked Italian 1997
vino rosso includes magnums and doubles of such hedonistic reds as Solaia
(P. Antinori), which Wine Spectator rated 98 points and named the #1 of the
Top 100 wines of 2000.
Find them here: http://www.winebid.com/home/spotlight2.shtml
Petrus. Lynch-Bages. Figeac. Talbot. Haut-Bailly. Palmer. We offer these
Bordeaux from the 1982 vintage, which makes them outstanding wines from an
outstanding vintage. Robert M. Parker Jr. awarded the Petrus 98 points, and
called it "a colossal wine." And about the Talbot, Parker wrote that he
couldn't recall "a more satisfying or complex Talbot than the 1982."
Find them here: http://www.winebid.com/home/spotlight3.shtml
A special note: Beginning Sunday, Oct. 28, winebid.com will host a special
two-week benefit auction for Family Winemakers of California, an association
of 490 wineries and wine-related businesses. All proceeds go to Family
Winemakers, an important voice in the California wine industry. The wine on
offer comes from member wineries from Araujo and Arrowood to Shafer and
Turley Wine Cellars. Along with many magnums, there also are 3, 5 and 6
liter bottles. The auction previews the association's 11th annual tasting
event, called Tasting 2001, to be held Nov. 13 at Fort Mason in San
Francisco.
If you click on a link in this email and it doesn't open properly in your
browser, try copying and pasting the link directly into your browser's
address or location field.
Forget your password?:
http://www.winebid.com/os/send_password.shtml
To be removed from the mailing list, click here:
http://www.winebid.com/os/mailing_list.shtml
Be sure to visit the updates page for policy changes:
http://www.winebid.com/about_winebid/update.shtml
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arnold-j/deleted_items/509.
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subject:
content: Your point was well taken with regards to the current situation over there. I hope you understand that my mind is always thinking in terms of how to make a trade out of a need.... i.e. swap to futures then its evolution to TAS...etc.
I had no prior knowledge of how credit issues were resolved by counterparties...and didn't mean to circumvent the process.
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arnold-j/deleted_items/51.
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subject: TRV Notification: (NG - PROPT P/L - 10/05/2001)
content: The report named: NG - PROPT P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=11&report_name=NG+-+PROPT+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y¤t_efct_date=10/05/2001>, published as of 10/05/2001 is now available for viewing on the website.
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arnold-j/deleted_items/510.
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subject: Pay to much for leads??? 18590
content: The Ultimate Traditional & Internet Marketing Tool, Introducing the "MasterDisc 2002" version 4.00, now released its MASSIVE 11 disc set with over 150 Million database records (18 gigabytes) for companies, people, email, fax, phone and mailing addresses Worldwide!
COMPLETE 11 DISC SET WILL BE SOLD FOR $499.00 PER DISC AFTER OCTOBER!!!
We've slashed the price for 15 days only to get you hooked on our leads & data products.
The first disc ver 4.00 (Contains a 1% sampling of all databases, all software titles, all demos, more then 20 million email addresses and many other resources) including unlimited usage is yours permanently for just $199.95 for your first disc (Normally $299.00) if you order today!!! Also huge discounts from 10%-50% off of data discs ver 4.01 to ver 4.10
For More Information, and Available Records Contact us:
#954-340-1018 voice
Or visit the website at:
http://www.datacommarketing.com/
**** MASTERDISC 2002 CONTENTS ****
We've gone out of our way to insure that this product is the finest of its kind available. Each CD (ver.4.01 to ver.4.10) contains approximately 1% of the 150 million records distributed with the following files, directories and databases:
**411: USA white and yellow pages data records including the following states, and database record fields;
Included States...(Alaska, Arizona, California, Colorado, Connecticut, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Texas, Utah, Vermont, Washington, Wisconsin, Wyoming)
Included Fields...(ID, NAME, CONTACT, ADDRESS, CITY, STATE, ZIP, PHONE, TYPE, SIC1, SIC2, SIC3, SIC4, LATITUDE, LONGITUDE, POSTAL)
#64,588,228 records
**DISCREETLIST: Adult web site subscribers and adult webmasters email addresses.
Subscribers (Email Address) #260,971 records
Webmaster (Email Address) #18,104 records
**DOCUMENTS: This directory contains very informative discussions about marketing and commercial email.
Library: Online e-books related to marketing and commercial email
Reports: Useful reports and documents from various topics
#7,209 Files
**EMAIL: This directory contains the email address lists broken down by groups such as domain, and more than one hundred categories into files with a maximum size of 100,000 records each for easy use. As well as several remove files that we suggest and highly recommend that you filter against all of your email lists.
#31,414,838 records and #13,045,019 removes
**FORTUNE: This database contains primary contact data relating to fortune 500, fortune 1000, and millions more corporations sort able by company size and sales. The fields that are included are as follows;
Fortune #1
Included Fields...(ID, Company, Address, City, State, Zip, Phone, SIC, DUN, Sales, Employee, Contact, Title)
#418,896 records
Fortune #2
Included Fields...(EMAIL, SIC CODE, Company, Phone, Fax, Street, City, ZIP, State, Country, First Name, Last Name)
#2,019,442 records
**GENDERMAIL: Male and female email address lists that allow you target by gender with 99% accuracy.
Male (Email Address) #13,131,440 records
Female (Email Address) #6,074,490 records
**MARKETMAKERS: Active online investors email addresses. Also information in reference to thousands of public companies symbols, and descriptions.
#104,326 records
**MAXDISC: Online website owners, administrators, and technical contacts for website domain name owners of the ".com", ".net", and ".org" sites. This database has information from about 25% of all registered domains with these extensions.
MaxDisc_Canada_2.txt
Included Fields...(ID, Domain, Contact, Admin Handle, Admin Name, Admin Email, Admin Phone, Admin Fax, Billing Handle, Billing Name, Billing Email, Billing Phone, Billing Fax, Tech Handle, Tech Name, Tech Email, Tech Phone, Tech Fax)
#74,550 records
MaxDisc_City_State_Zip_1.txt
Included Fields...(ID, City, State, Zip)
#39,175 records
MaxDisc_Country_Codes_1.txt
Included Fields...(ID, Country, Abv)
#253 records
MaxDisc_Email_Removes_1.txt
Included Fields...(ID, Email)
#163,834 records
MaxDisc_Foreign_1.txt
Included Fields...(ID,Domain,Contact,Address1,Address2,Country)
#1,924,127 records
MaxDisc_Foreign_2.zip
Included Fields...(ID, Domain, Company, Address, Admin Handle, Admin Name, Admin Email, Admin Phone, Admin Fax, Billing Handle, Billing Name, Billing Email, Billing Phone, Billing Fax, Tech Handle, Tech Name, Tech Email, Tech Phone, Tech Fax)
#2,412,834 records
MaxDisc_Meta_1.zip
Included Fields...(ID, Domain, Company, Address, City, State or Province, Zip, Country, First Name, Last Name, Email, Phone, Fax, Title, META Description, META Keywords, Body)
#293,225 records
MaxDisc_Meta_2.zip
Included Fields...(ID, Domain, Email)
#188,768 records
MaxDisc_Sic_Codes_1.zip
Included Fields...(Code, Description)
#11,629 records
MaxDisc_USA_1.zip
Included Fields...(ID, Domain, Company, Contact, Address, City, State, Zip, Phone, Fax, Sic, Email)
#1,389,876 records
MaxDisc_USA_2.zip
Included Fields...(ID, Domain, Company, Address, Billing Name, Billing Email, Billing Phone, Billing Fax, Admin Name, Admin Email, Admin Phone, Admin Fax, Tech Name, Tech Email, Tech Phone, Tech Fax)
#2,998,891 records
MaxDisc_USA_3.zip
Included Fields...(ID, Domain, Company, Address, Billing Name, Billing Email, Billing Phone, Billing Fax, Admin Name, Admin Email, Admin Phone, Admin Fax, Tech Name, Tech Email, Tech Phone, Tech Fax)
#2,005,887 records
**NEWSPAPERS: National directory of newspapers from small local papers to large metro news agencies.
Included Fields...(ID, Phone, Newspaper, City, State, Circulation, Frequency)
#9,277 records
**PITBOSS: Avid Online casino and sports book players, and casino webmasters.
Players Included Fields...(ID, FIRSTNAME, LASTNAME, ADDRESS, CITY, STATE, ZIP, COUNTRY, PHONE, EMAIL, PMTTYPE, USERID, HOSTNAME, IPADDRESS)
#235,583 records
Webmaster Included Fields...(domain, date_created, date_expires, date_updated, registrar, name_server_1, name_server_2, name_server_3, name_server_4, owner_name_1, owner_address_1, owner_city, owner_state, owner_zip, owner_country, admin_contact_name_1, admin_contact_name_2, admin_contact_address_1, admin_contact_city, admin_contact_state, admin_contact_zip, admin_contact_country, admin_contact_phone, admin_contact_fax, admin_contact_email, tech_contact_name_1, tech_contact_name_2, tech_contact_address_1, tech_contact_city, tech_contact_state, tech_contact_zip, tech_contact_country, tech_contact_phone, tech_contact_fax, tech_contact_email)
#82,371 records
**SA: South American mailing databases from more than a dozen countries. Each mailing address belongs to a Visa or MasterCard credit card holder. Available countries such as;
ARGENTINA, OSTA RICA, PERU, BRASIL, PUERTO_RICO, CHILE, PANAMA, URUGUAY, COLOMBIA, PARAGUAY, VENEZUELA
Included Fields...(ID, NAME, ADDRESS, CODE)
#650,456 records
**SOFTWARE: This directory contains 86 software titles, some are fully functional versions and others are demo versions. Many suites of commercial email tools as well as many other useful resources will be found here to help extract, verify, manage, and deliver successful commercial email marketing campaigns.
So overall the complete MasterDisc2002 will provide you with well over #150 million records which can be used for traditional marketing such as direct mail, fax transmission, telemarketing, and internet marketing such as commercial email campaigns. We look forward to providing you with the databases and software needed for your success!!!
We are currently shipping our October 2001 release.
Due to this incredibly discounted promotional price, we are accepting only credit card or check orders. Complete the buyer and shipping info, print and fax this form with a copy of your check attached or the completed credit card information.
For More Information, and Available Records Contact us:
#954-340-1018 voice
Or visit the website at:
http://www.datacommarketing.com/
To Order Now Return The Form Below Via Fax #954-340-1917
------------------------------------------------------------------
BEGIN ORDER FORM
------------------------------------------------------------------
PRODUCTS OR SERVICES ORDER FORM
[x] Place an X in the appropriate box for each product you want.
MasterDisc 2002 (The Ultimate Marketing Database)
[ ]MD2002 (ver 4.00 MasterDisc 2002) available for $199.00US (33% discount)
[ ]MD2001 (ver 4.01 disc #1) available for $499.00US
[ ]MD2001 (ver 4.02 disc #2) available for $499.00US
[ ]MD2001 (ver 4.03 disc #3) available for $499.00US
[ ]MD2001 (ver 4.04 disc #4) available for $499.00US
[ ]MD2001 (ver 4.05 disc #5) available for $499.00US
[ ]MD2001 (ver 4.06 disc #6) available for $499.00US
[ ]MD2001 (ver 4.07 disc #7) available for $499.00US
[ ]MD2001 (ver 4.08 disc #8) available for $499.00US
[ ]MD2001 (ver 4.09 disc #9) available for $499.00US
[ ]MD2001 (ver 4.10 disc #10) available for $499.00US
Monthly Updates (Additional Discs)
[ ]MD2002 (Single Disc Monthly Each) available for $399.0US (20% discount)
[ ]MD2002 (Two Discs Monthly) available for $699.00US (30% discount)
[ ]MD2002 (Four Discs Monthly) available for $1199.00US (40% discount)
[ ] MD2002 (ver 4 - 11 CD Set- All Discs) available for $2798.00US (50% discount)
[ ] Please have a sales representative contact me for more information!!!
Total:$_____________________
(Purchase of 2 data discs deduct 20%, 4 discs deduct 30%, and for full set of discs deduct 50%)
__________________________________________________________________
CUSTOMER INFORMATION
Company:
Street Address:
City: State: Zip: Country:
Contact Name:
Title:
Phone #: Ext.: Fax #: Fax Ext.:
Contact Email Address:
Referred By:
SHIPPING INFORMATION
*if applicable*
If no address is entered we will use the address listed in the billing section
Ship To:
Street Address:
City: State: Zip: Country:
Shipping Phone:
Domestic Shipping Options Only
[ ] Shipping & Handling via Ground Delivery UPS (Included USA Only)
[ ] C.O.D. order ($17.50 C.O.D. Charge) Shipped 2nd Day Air
[ ] Express Processing, and Ship Priority Overnight for an additional $29.00
International Shipping Options Only
[ ] International Shipping is a flat priority fee of $49.00
CHECK PAYMENT INFORMATION
[ ] Pay by check AMOUNT OF CHECK $____________ CHECK #________
***Be sure to include shipping charges if priority overnight or COD is selected above***
Mail all payments by check to:
DataCom Marketing Corp.
1440 Coral Ridge Dr. #336
Coral Springs, Florida 33071
Attn: Processing & Shipping
954-340-1018 voice
CREDIT CARD AUTHORIZATION SECTION
[ ] Pay by Credit Card TOTAL CHARGE
Card Type: [ ] Visa [ ] Master Card [ ] American Express [ ] Discover
Card Number:
Card Holder Name:
(*This must be completed & signed by cardholder)
Billing Address:
City: State: Zip: Country:
I authorize "DataCom Marketing Corporation" to charge my credit card or accept my payment for the "Products Ordered" CdRom in the amount as specified above plus shipping costs if express delivery.
Also I acknowledge that any returns or credits will have a 20% restocking fee and balances (Less shipping and handling) will be applied towards replacement of products and/or applied towards my DataCom Marketing customer account.
[International Only]
By signing under the credit card authorization section I am authorizing the credit card submitted to be billed approximately 6 weeks after the original amount is processed for the amount of the import duties and import taxes if applicable. I acknowledge the fact that "DataCom Marketing Corporation" does not know the amount of these duties/taxes prior to shipment as they vary from country to country.
Customer Signature _____________________________________ Date________________
Sales Representative: 2369 Rev. 1017
------------------------------------------------------------------
END ORDER FORM
------------------------------------------------------------------
For More Information, and Available Records Contact us:
#954-340-1018 voice
Or visit the website at:
http://www.datacommarketing.com/
To discontinue receipt of further notice at no cost and to be removed from all of our databases, simply reply to message with the word "Remove" in the subject line. Note: Email replies will not be automatically added to the remove database and may take up to 5 business days to process!!! If you are a Washington, Virginia, or California resident please remove yourself via email reply, phone at 954-340-1018, or by fax at 954-340-1917. We honor all removal requests.
102601BW
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