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arnold-j/inbox/174.
|
RE: ,
you still here?
-----Original Message-----
From: Arnold, John
Sent: Monday, November 26, 2001 6:17 PM
To: Ward, Kim S (Houston)
Subject: RE:
good try at the lingo but an inappropriate usage due to the fact monday morning is when YOU'RE SUPPOSED TO WORK OUT.
-----Original Message-----
From: Ward, Kim S (Houston)
Sent: Mon 11/26/2001 4:01 PM
To: Arnold, John
Cc:
Subject: RE:
thanks for the look
-----Original Message-----
From: Arnold, John
Sent: Monday, November 26, 2001 2:05 PM
To: Ward, Kim S (Houston)
Subject: RE:
I went already lazy
-----Original Message-----
From: Ward, Kim S (Houston)
Sent: Monday, November 26, 2001 1:48 PM
To: Arnold, John
Subject:
Did you go this morning? If not, do you want to go after work?
|
houston <[email protected]>
| 6,156 |
|
arnold-j/inbox/176.
|
TRV Notification: (NG - Price P/L - 11/27/2001) ,
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=11/27/2001>, published as of 11/27/2001 is now available for viewing on the website.
| 6,157 |
||
arnold-j/inbox/177.
|
Book list ,
Need your book list from amazon.com!!!! May sleet and snow tonight but I
think the ground is too warm to stick or get icy. Although I could use a
day off work! Send me your christmas list! Also, I see that Enron and
Dynegy have been negotiating for days.....this concerns me. they cannot
seem to come up with a new price. Are you continuing to lose trading?
what % of normal trades are you now doing a day? I just hope you and
Matthew are OK. And Jeannie. Let me know. Love you, Mom.
| 6,158 |
||
arnold-j/inbox/18.
|
Expense Reports Awaiting Your Approval ,
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: 4
| 6,159 |
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arnold-j/inbox/19.
|
RIBFEST -5- (Nov. 3rd) ,
The World Wide RibFest "celebration of the Rib" is coming up. This will be the 5th annual ribfest, and John Mee has his work cut out for him to defend the title he won last year (for the second time). I believe he will have a tough time, as the competition looks increasingly focused on unseating the former Bostonian from his Throne.
For those of you who haven't been to a ribfest in the past, it's a barbeque competition where 5 to 7 cooks compete to see who can produce the best Baby Back Ribs (if you want those Fred Flintstone beef ribs, you ain't getting them here). A blind-judging takes place to determine the winner, but often the crowd gets up in arms and nominates a "peoples choice" (though this is not officially recognized by the sanctioning body).
Every year, my wife asks the following: "So, besides Ribs, beer and margaritas, what else will be served?"
I reply: "Nothing comes to mind."
She replies: "No."
As you might expect, she wins this discussion year in, year out. So, appetizers, sides, desserts and food & drink for the kids are also served. The competition around the grills gets a little rough, so I recommend that the young and faint-of-heart maintain a safe distance while the cooking and competition is taking place. The appropriate College football games will be broadcast, so you don't have to worry about missing any games.
There are a couple of changes to this year's competition:
The competition will be held at the John Mee/Laura Benjamins compound in Bellaire
Mike Paradise (who won the very first ribfest) has stepped out of the competition this year citing "personal reasons"
Date & Time
Saturday November 3rd. We fire the grills up around 12:00, and the judging takes place between 3:00 and 3:30.
Where
4807 Elm Street in Bellaire
Directions (from John Mee himself)
From downtown, take 59s to 610s. The first exit is the Bissonette//Fournace exit. Take this exit and go through the light, noting the gouging in the lamppost from that freak cherry-picker accident from last April. Before the Bisonette light, there is a big Chase Bank Building. Right before that building is Elm Street. Take a right on Elm Street exactly 236 yards to 4807 Elm Street. Go inside and ask for directions there, cause I really don't have a clue...
KIDS
Bring 'em! We'll have the Moonwalk set up for them again this year, and we'll have hot dogs, burgers, popcorn and drinks for them. The more kids the better.
What you need to bring
Nothing, except maybe some attitude to heckle the cooks while they try to concentrate.
RSVP
Call John and Laura 713 839 8700 -or-
Greg and Martha 713 861 2766
We need to make sure we stock up enough ribs to go around.
| 6,160 |
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arnold-j/inbox/2.
|
Supervisor Evaluation Forms ,
ARNOLD, JOHN D:
Attached below you will find the final Evaluation forms for your direct reports; these forms have been pre-populated with your employees' basic data. If you have already completed your employees' final Evaluations, you may disregard these forms.
When completing the Evaluation, carefully consider employee input, consolidated feedback and your observations of their performance and contribution, and encourage employee participation in the evaluation discussion. For many employees, this will be the only formal opportunity to discuss their performance with their supervisor.
Final Evaluations should be completed and returned to your HR representative by August 17 (July 31 for all those in Business Units reporting to Enron Europe) for employees in job groups below Vice President level.
If you have any questions, please contact your HR representative or the PEP help desk at x34777, option 4.
We recommend saving all the below attachment[s] at once in the following manner:
Outlook Users: Go to File -> Save Attachments, click OK if prompted, then choose which directory to save the documents under.
Lotus Notes Users: Go to Attachment -> Detach All, then choose which directory to save the documents under.
- DISTURNAL, JOHN.doc
- GRIFFITH, JOHN H.doc
- MAGGI, MICHAEL J.doc
- MAY, LAWRENCE J.doc
- QUIGLEY, HENRY H.doc
- RANGEL, INA R.doc
| 6,161 |
||
arnold-j/inbox/20.
|
credit from buy.com ,
Hello John,
Thank you for shopping at buy.com.
We guarantee your satisfaction with our high quality products
and customer support. Since your experience with order #11673325
did not live up to our high standards, we have issued you a credit in
the amount of $101.47.
Please allow 3-5 days for your bank to apply this credit to
your account.
If you have any questions, please visit customer support at
https://www.us.buy.com/corp/support.
Thank you again for shopping with us. We look forward to serving
you in the future.
Sincerely,
buy.com
http://www.buy.com
================================================
Please use the link below for your Customer Support questions. Please
do not reply to the buy.com email address. For anytime Help click:
www.us.buy.com/corp/support.
================================================
| 6,162 |
||
arnold-j/inbox/21.
|
RE: wheres the love? ,
hey man no problem.i know youre a busy man.its getting ahrder to say how to
play this thing. sprds are massive contango-minimal inverses in the winter.
indeed there shudnt be any problems to supply gas this winter but suply
growth hasnt been stellar and prob wont rise from here now.im not a raging
bull but the past couple of aga and the cashs trength. and the mkt
structure(no sellers in the forward), leads me to beleive there cud be more
upside. mkt is prob a range mkt for a time. but overall i think this is a
weather bet. if we have a winter it will suport the whole curve if its warm
i will be awful-stay in that 2.00-2.50 rnage for spot prices.
i think the prompt is out of the woods-if so long as we have normal
weather nov cash will be ok -wont trade lower than oct cash as long as we
have big incentive to roll storage mar/apr? i bailed. basically washed. in
the long term its prob ok but they arent gonna let me make any serious money
on it in the next few weeks prob longer so why have it on esp when this
winter is such a big discount to next-i guess theres some risk h/j moves
higher if they y on y sprds come in much?? not sure so i bailed. i dont
disagree with you on the calender sprds but i just dont think the entry pt
is attractive. about the only thing im running is nov long agaisnt dec and
jan shorts. pretty netrual no big bets on for now-first time in a awhile.
nothing is that obvious to me. if mktstays sort of balanced until end dec i
mite take a shot on the long side late dec early jan. i struggle paying
sucha big premium for the forward curve
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Monday, October 08, 2001 7:58 PM
To: LaFontaine, Steve
Subject: RE: wheres the love?
Sorry,sorry, sorry.
Havent had internet access at home for past 5 weeks. Much easier to write
these at home as when I'm done trading I don't want to look at my computer.
For november, very neutral. Cash is impressive. Agree shutins, switching,
and some weather are making market look more like equilibrium. Think with
cash/futures at 20 cents, x/z looks crazy. As soon as z becomes prompt,
the fear factor/risk premium of it will decrease and the whole winter will
come off. Like your h/j trade. Hard to see it really being worth 9 cents
at settlement. Been buying a lot of y/y cantango as I think next summer
will be a piece but longer term gas story still very real and customers
know it. Wouldnt be surprised to see 2/3 go to 50+. I think x has some
room to go up, but not a lot. Dont want to play the market from the long
side as been burned before trying to get long a market that is still in a
downtrend. Seems like the curve will just keep rolling down with each
expiry. All the winter months might settle 2.25. As such, the best thing
to be short is jan.
-----Original Message-----
From: "Lafontaine, Steve" <[email protected]>@ENRON
[mailto:IMCEANOTES-+22Lafontaine+2C+20Steve+22+20+3Csteve+2Elafontaine+40ban
[email protected]]
Sent: Friday, October 05, 2001 12:32 PM
To: Lafontaine, Steve; [email protected]
Subject: RE: wheres the love?
well the mkts changed a bit since this writing. im more neturalish now i
guess. suprised about the cash strongth. and i guess it doesnt mattr CUZ
YOU
DONT ANSWER YOUR EMAILS ANYWAY.
regards
> -----Original Message-----
> From: LaFontaine, Steve
> Sent: Friday, September 21, 2001 4:40 PM
> To: John Arnold (E-mail)
> Subject: whats up young man?
>
> johnny hope all is well. is ok here. new york a little stranger than
> normal for obvious reasons.. wwe're trying to get back to normal.
pretty
> stressful cupla weeks. business has been pretty good(trading anyway)
in
> natgas and oil. certainly have been some changes in natgas
fundamentals
> but too littl too late im afraid to get bullish . market sucks and the
> newest shock to macr economics im starting to think are mitigating
what
> mite have been some postive bullish changes like gas/oil relationship
and
> gas shut ins. looks shitty i think. im not as short as ive been but
> starting to think this witer is waaay too high priced. just funtction
> timing i guess. i sold a few march aprils again. just doesnt fit the
curve
> and i think 80% probabitly we end march with over 1.3 tcf in the
ground.
> wud keep things ugle for awhile.
> anyway curious your thots as always. also wanted to say hi.have a
good
> weekend
**********************************************************************
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.
**********************************************************************
| 6,165 |
||
arnold-j/inbox/22.
|
RE: ,
Dear Mr. Arnold:
Thank you for your email.
Yes, recruiting season is now in full swing. I am now waiting to hear from
Ms. Chenee Franklin, hoping to secure an interview. Eva was very helpful
and informative; through her I learned a good deal about Enron's trading
businesses.
Once scheduled for an interview, I would appreciate it if we could talk over
the phone at your convenience.
Again, thank you, and I will keep you updated.
Sincerely,
Gad Caspy
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Wednesday, October 10, 2001 6:59 PM
To: [email protected]
Subject: RE:
Just following up to see if the recruiting season has started and to make
sure everything is going okay. If you need anything, just say the word.
-----Original Message-----
From: "Gad Caspy" <[email protected]>@ENRON
[mailto:IMCEANOTES-+22Gad+20Caspy+22+20+3Cgcaspy+40mba2002+2Ehbs+2Eedu+3E+40
[email protected]]
Sent: Monday, September 24, 2001 2:29 PM
To: Arnold, John
Subject: RE:
Dear Mr. Arnold:
Please let me know if I can call you this week at your convenient.
Sincerely,
Gad Caspy
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Thursday, September 13, 2001 8:02 PM
To: [email protected]
Subject: RE: Potential employment opportunities with Enron
Gad:
Sorry for the extremely late response. Despite the fact that Eva
referred
you, we would have interest in meeting with you about emplyment opps. I
was
planning on going to NY in a couple weeks but at this point, I don't
know.
I would highly recommend that you follow the formal recruitment program
in
addition to any talks we have. Although I can recommend to make you an
offer, it is much easier if it is done in parallel with the associate
recruitment program. After the current events calm down, we can talk
via
phone about my experience here and why I think there are some good
opportunities here.
-----Original Message-----
From: "Gad Caspy" <[email protected]>@ENRON
[mailto:IMCEANOTES-+22Gad+20Caspy+22+20+3Cgcaspy+40mba2002+2Ehbs+2Eedu+3E+40
[email protected]]
Sent: Tuesday, September 04, 2001 5:29 PM
To: [email protected]
Subject: Potential employment opportunities with Enron
Dear Mr. Arnold:
I was referred to you by Ms. Eva Pao. I am a second year MBA student
at
Harvard Business School, writing to express interest in exploring
potential
employment opportunities with Enron. In particularly, I am
interested
in
derivatives trading.
I have attached my resume for your convenience. As you can see, my
professional experience has been in a variety of roles within
financial
institutions and specifically, managing a currency trading-desk,
before
starting my MBA.
I would appreciate an opportunity to meet with you or with one of
your
colleagues, on a formal or informal basis, who might be in the Boston
or
NYC
areas in the next few months.
Thank you for your time and consideration.
Sincerely,
Gad Caspy
24 Peabody Terrace # 1801
Cambridge, MA 02138
H (617) 876 2306
Harvard Business School
MBA 2002
- Gad_Caspy_Resume.doc << File: Gad_Caspy_Resume.doc >>
**********************************************************************
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.
**********************************************************************
| 6,166 |
||
arnold-j/inbox/23.
|
Increasing EOL liquidity in West Basis ,
I would like to set up a brief meeting in the afternoon this week or next, to discuss increasing the liquidity in west basis on EOL. It would be helpful for our desk to sit down with John Arnold and John Lavorato to openly discuss the importance of continuing to increase liquidity on EOL.
I would also like to put to rest the notion that increasing liquidity leads to negative P&L and that a Trader's support of EOL liquidity will go unrecognized at year end PRC.
Please email me with a response of when we could set up such a meeting.
Sincerely,
Mike Grigsby
| 6,167 |
||
arnold-j/inbox/24.
|
RE: ,
Here are the four decimals while keeping the spread the same
1985332 2.6763
1985333 2.8788
-----Original Message-----
From: Arnold, John
Sent: Monday, October 15, 2001 11:14 AM
To: Taylor, Joey
Subject:
Joey:
Can you round the price of following EOL deals from 10/9 with Cargill to four decimals while keeping the spread price the same:
1985332
1985333
Thx,
John
| 6,168 |
||
arnold-j/inbox/25.
|
Supported Internet Email Addresses ,
Enron Global Technology is in the process of decommissioning the support for all non-standard Internet Email address formats. The only Internet Email address format that will be supported, once this effort is completed, is [email protected]. We will no longer support Internet Email address formats such as [email protected], [email protected], [email protected] (where "name" is an abbreviation, acronym or alternative to an employees firstname and/or lastname). Every Enron employee has an Internet Email address of [email protected] and must begin making the necessary arrangements to start using this Internet address format if they are not using it already.
Any new/existing application systems or business cards that reference a non-supported Internet Email address will need to be changed to reference the only supported [email protected] Internet address format. It is important to remember to also notify any external contacts who are currently sending Internet email to any non-supported Internet Email addresses.
To determine what your supported Internet Email address is, take your name as it appears in Outlook or Lotus Notes and replace any "spaces" that appear in your name with periods and append @enron.com. For example in Outlook, Alan Smith, Robert (firstname = Robert, Lastname = Alan Smith) will have a supported Internet Email address of [email protected].
IMPORTANT : If you need to update your business card(s) to reflect your supported Internet Email address, please ensure you test & confirm the delivery of Internet email to your supported email address prior to updating your business cards. If you experience any issues with delivery of Internet email to your supported Internet email address, please contact the Resolution Center.
We will communicate further details, including the cut-off date, in the coming weeks. Meanwhile, it is imperative that you begin making the necessary arrangements to change over to using the [email protected] Internet Email address format. If you have questions regarding this email, send an Email to [email protected].
Thank you for participation, cooperation and support.
Enron Messaging Administration
|
All Enron Worldwide@ENRON <??SAll Enron Worldwide@ENRON>
| 6,169 |
|
arnold-j/inbox/26.
|
RE: Spark Spread Options ,
Hi,
The power options trading desk is beginning to structure deals and to make markets in spark spread options ( options on the spreads between power prices and natural gas prices). Please refer to the attached file for further information.
It would be most helpful to meet with the relevant individuals on the Gas desk who would be interested in spark spread options.
Thank you in advance for your assistance.
Kind regards,
Iris Mack, MBA/PhD
Enron Power Options Trading Desk
x3-6711
| 6,170 |
||
arnold-j/inbox/27.
|
Slide for John Sheriff ,
Hi John,
I was wondering if you had a chance to put together that slide for us. I know you are really busy and we appreciate your help. Thanks.
Savita
| 6,171 |
||
arnold-j/inbox/28.
|
FW: Enron Deal from 17-Oct-01 ,
John,
Will you advise if you have completed the transactions per our discussion on
October 17, 2001:
Selling US Gas Swap Nymex Dec01 USD/MM-L 100 @ $2.96125
Buying US Gas Swap Nymex Jan02 USD/MM-L 100 @ $3.13875
We have not received any confirmation that these transactions have been
completed.
Thanks,
Cindy Kisling
OGE Energy Resources
(405) 553-6475 - voice
(405) 553-6498 - fax
[email protected]
> -----Original Message-----
> From: Kisling, Cynthia E
> Sent: Thursday, October 18, 2001 9:27 AM
> To: '[email protected]'
> Cc: Schurman II, Rankin; Burrows, Phil W; Mercer, Donna S; Gencheva,
> Daniela I
> Subject: Enron Deal from 17-Oct-01
>
> John Arnold,
>
> Per our conversation on Wednesday, October 17, 2001, you would be
> executing the following transaction over-the-counter on October 17:
>
> Selling US Gas Swap Nymex Dec01 USD/MM-L 100 @ $2.96125
> Buying US Gas Swap Nymex Jan02 USD/MM-L 100 @ $3.13875
>
>
> The trades above will be used to offset the following trades from
> 17-Oct-01:
>
> Enron # = 2032181
> Buying US Gas Swap Nymex Dec-01 USD/MM-L 100 @ $2.96125
>
> Enron # = 2032182
> Selling US Gas Swap Nymex Jan-02 USD.MM-L 100 @ $3.13875
>
> If you have any questions, please contact me at (405) 553-6475.
>
> Thanks,
> Cindy Kisling
> OGE Energy Resources
> (405) 553-6475 - voice
> (405) 553-6498 - fax
> [email protected]
>
| 6,172 |
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arnold-j/inbox/29.
|
3 announcements-Tasting,Catalog,Big Sale!!! ,
To Place an order . . .
PLEASE CALL 973-376-0005 ask for Order Dept.www.winelibrary.com
or e-mail us at [email protected]
3 BIG announcements!!!
1. Gary Vaynerchuk of the Wine Library has signed on to host a wine tasting dinner at Cafe Brand of Jersey City this Wednesday October 24 at 6:30PM. The $70 entry fee includes tax, gratuity and an elegant "World Bistro" style 7-course meal prepared by Executive Chef Seth Coburn. The menu will feature Seared Nori Tuna, Crusted Salmon Filet, & Grilled Fillet Mignon. Fedway Associates is providing the matching Californian & French wines, including the 1999 Stonegate Napa Merlot and the 1997 Rene Renou Bonnezeaux Trie de Vendanges. Call 201-459-9947 for reservations & directions.
Event: 7 Course Wine Tasting Dinner
Date: Wednesday, October 24, 2001
Time: 6:30 PM Reception Start
Price: $70 (includes tax & gratuity)
Place: Cafe Brand
611 Jersey Ave., Jersey City NJ 07302
Located in Downtown Jersey City
at the Corner of 5th and Jersey Ave.
Phone: 201-459-9947
2. If you didn't receive last years Wine Library Catalog and would like to this year, please e-mail (by replying to this e-mail) us your name and address
3. This Friday, live on our website, we will unveil our 2001 Customer Appreciation Sale on www.winelibrary.com , the sale will start on Friday and run through the month of November. There will be a large selection of wines discounted 30-50 % and this is a real bargain hunters paradise! We want to run these sales for 2 reasons. 1, to thank all of you for shopping Wine Library and 2, To reduce our inventory on random bottles going into the holidays. There will be small quantities on most wines, so please act very quickly if you have interest. If you stop by the store these wines will be marked with special sale tags (starting Saturday)...Happy Hunting and make sure you stop by or log on to www.winelibrary.com on Friday @ 11 am!
| 6,173 |
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arnold-j/inbox/3.
|
FW: Robotrader/Autotrader ,
John,
Attached is an email which I have sent to Savita (who will not be able to attend today). It addresses the Robotrader concept. I will bring some hardcopy to hit the high points this afternoon.
Dave
-----Original Message-----
From: Forster, David
Sent: Monday, July 16, 2001 4:06 PM
To: Puthigai, Savita
Subject: Robotrader/Autotrader
Savita,
Attached is the latest Robotrader spreadsheet.
As you may recall, we tried several different approaches to minimizing the cost of the market running up and then down again.
The solution which gave the best solution was also the simplest one.
Principles as follows:
- Basically an advanced Offset to Last Trade
- Definitions
- Intensity: Measures the length of time between transactions as a rolling average over the last x number of transactions (the Intensity Factor)
- Intensity Factor: The number of transactions used in calculating the rolling average Intensity
- Dead Interval: The period of time in which (if nothing occurs), an event or transaction is deemed to take place.
- Offset Reversion Ratio: The percentage by which the Offset will be reduced if a Dead Interval passes
- Spread Minimum: The minimum spread which can be used.
- Offset Minimum: The minimum offset which may be used.
- Spread-Offset Minimum: The minimum amount by which the spread must exceed the offset
- Spread Reversion Rate: The amount in dollars by which the spread will decrease if a Dead Interval passes
- Position Sensitivity: The position which, if exceeded, will cause the V Factor Adjustment to increase
- V-Factor adjust: The amount by which the Momentum will be increased if the Position Sensitivity is exceeded.
- Momentum: The measure of the degree to which the market is either just buying or just selling
- Adjusted Momentum: A Momentum number which may be boosted, causing a larger price reaction when the Position Sensitivity is exceeded.
- Offset: The amount by which a bid or offer will be increased/decreased when a transaction occurs.
- Spread: The difference between the bid and the offer
- General Principles and Mechanics
- As each Sell (Buy) occurs, the Momentum decreases (increases).
- The Adjusted Momentum is the same as the Momentum, unless the Position Sensitivity is exceeded.
- If the Position Sensitivity is exceeded, then the Adjusted Momentum is boosted by the V-Factor Adjustment
- The Offset is calculated by looking up the Offset value on a table for the specified Adjusted Momentum
- The Spread is calculated by looking up the value to boost (decrease) the Spread on a table for the Specified Intensity
- As the Intensity value drops, the Spread widens. As it increases, the Spread decreases.
- In a running market, the offset will increase quickly. If it establishes a new level, the Offset will slowly decrease
- If the market runs up and whipsaws back, the offset will stay large
- If a market range trades, the offset will trend to zero.
- If there are a large number of transaction in succession, the spread will widen
- If there are a small number of transactions in succession, the spread will tighten.
Dave
| 6,174 |
||
arnold-j/inbox/30.
|
NYMEX ,
Who can I call to get access to NYMEX when I'm there next week? I'll want to take photos!!!
How was your weekend? MSA
| 6,175 |
||
arnold-j/inbox/32.
|
RE: ,
I completely understand and thanks for letting me know. Maybe when I become a famous rock star and leave Enron you will reconsider. I don't know if I can make it on Friday. I am singing in a good friends wedding this weekend and the rehearsal dinner is Friday night. If you are going to be out any other time this week let me know and if not I can get it next week. How was your weekend with your friend?
Talk to you soon.
-----Original Message-----
From: Arnold, John
Sent: Monday, October 22, 2001 11:43 PM
To: Banner, Kimberly
Subject:
Ok, so I'm an asshole. Sorry for not responding earlier. There really were some things I needed to think about.
As I spend the majority of my life at or around Enron, the majority of the people I know professionally, socially, and romantically have been from Enron. The further I get professionally, the harder it seems to continue the other two: socially to keep my sanity, and romantically for so many other reasons. Although I do really like you and am very attracted to you, it is just really tough for me to ask you out right now. Your only fault in my eyes is your place of employment. As such, I would prefer to try to be friends for a while.
I still do have your necklace. I'll promise to have it Friday at the front porch if you're there.
John
| 6,177 |
||
arnold-j/inbox/33.
|
RE: ,
John,
Bo Collins would like to speak with you. Can you forward me your phone # or
call him at 212-299-2260?
Dan
-----Original Message-----
From: Arnold, John [mailto:[email protected]]
Sent: Tuesday, October 23, 2001 9:30 AM
To: [email protected]
Subject:
Daniel:
Can you include me in the nymex nat gas advisory panel meeting today?
John Arnold
Enron
**********************************************************************
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.
**********************************************************************
| 6,178 |
||
arnold-j/inbox/35.
|
Confidential - Voicemail Messages ,
These were the messages in your voicemail:
1. 10/18/01 - Margaret Allen ....needed your advice on whether her sister should take job with Cal-Pine or Kinder Morgan
2. 10/19/01 - Adrianne Engler ....regarding candidantes that you were suppose to phone interview. (you have sent her an email since this)
3. 10/23/01 - Bob Shults(X3-0397)....they met with Nymex last week and are getting ready send the proposal ont eh document you saw last week. He wants to make sure that you
are okay with this and dont have any issues.
| 6,180 |
||
arnold-j/inbox/36.
|
hi ,
Hey there. We are going to be at Front Porch today if you aren't busy later. You are invited to stop by and wear my necklace if you want. Has your week been better than last week?
Talk to you soon.
Kim
| 6,181 |
||
arnold-j/inbox/37.
|
ENE EQUITY CN GO ,
not good.....
-----Original Message-----
From: Arnold, John
Sent: Thu 10/25/2001 5:42 PM
To: Fraser, Jennifer
Cc:
Subject: RE: what are u up to later?
I''ll be drinking either at front porch or little woodrows
-----Original Message-----
From: Fraser, Jennifer
Sent: Thursday, October 25, 2001 3:34 PM
To: Arnold, John
Subject: what are u up to later?
| 6,182 |
||
arnold-j/inbox/38.
|
FW: Gas Trades ,
The only thing that may save us is that Dutch gave me those numbers during EOL problems..
Frank
PS Lavo's VAR is over again
-----Original Message-----
From: Hayden, Frank
Sent: Thursday, October 25, 2001 1:33 PM
To: Lavorato, John
Cc: Port, David
Subject: Gas Trades
East Power (500)
West Power 50
Canada 100
Central (1000)
East (1600)
West (380)
Texas (300)
Lavo 2000
Fin 2500 Dec. - Mar.
3650 Cal 2 & Cal 3
total 4,520
PS. Arnold's EOL died on him. Not good
| 6,183 |
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arnold-j/inbox/39.
|
Enron Mentions ,
Enron Taps $3 Billion From Bank Lines In Pre-Emptive Move to Ensure Liquidi=
ty --- Firm Will Pay Debt, Keep Cash Cushion
The Wall Street Journal, 10/26/01
Deals & Deal Makers: Enron Officials Sell Shares Amid Stock-Price Slump
The Wall Street Journal, 10/26/01
Enron's Financial Troubles Reverberate to Bonds With Poor Liquidity and Cre=
dit-Rating Concerns
The Wall Street Journal, 10/26/01
Most Analysts Remain Plugged In to Enron
The Wall Street Journal, 10/26/01
Enron Draws Down $3 Bln in Credit to Boost Investor Confidence
Bloomberg, 10/26/01
Enron Liked By Analysts Despite Complicated Dealings, WSJ Says
Bloomberg, 10/26/01
Enron Draws Down $3 Billion From Its Credit Lines, WSJ Reports
Bloomberg, 10/26/01
Action by Enron halts stock's fall
Houston Chronicle, 10/26/01
Corporate US on track for bailout
The Guardian, 10/26/01
Harvey Pitt's S.E.C.: From Guard Dog to Friendly Puppy?
The New York Times, 10/26/01
Enron draws down at least 1 bln usd from credit lines to boost mkt confiden=
ce
AFX News, 10/26/01
The Five Dumbest Things on Wall Street This Week
TheStreet.com, 10/26/01
Stocks Post Gains After A Rough Morning
The Washington Post, 10/26/01
Sudhakar will head Enron probe panel
The Times of India, 10/26/01
Enron Taps $3 Billion From Bank Lines in Pre-Emptive Move to Ensure Liquidi=
ty
Dow Jones Business News, 10/25/01
Enron chief executive resigns from board of i2 Technologies
Associated Press Newswires, 10/25/01
As Enron's woes unnerve investors about energy sector, analysts say its pro=
blems are isolated
Associated Press Newswires, 10/25/01
Enron's Credit Outlook Downgraded to Negative by S&P (Update1)
Bloomberg, 10/25/01
Enron's Trading Partners Say It's Business as Usual (Update2)
Bloomberg, 10/25/01
Enron Broadband Begins Closing London, Singapore Offices
Dow Jones Energy Service, 10/25/01
Calpine:No Exposure To Enron; No Calif Pwr Contract Talks
Dow Jones Energy Service, 10/25/01
Spector, Roseman & Kodroff, P.C. Files Class Action Suit Against Enron Corp=
oration
PR Newswire, 10/25/01
TGS Q3 net profit up 22 pct yr-on-yr on higher NGL sales, transport revenue=
s
AFX News, 10/25/01
Enron Draws Down Credit Facility
Dow Jones News Service, 10/25/01
Enron Employees Watch Options Devalue as Shares Fall (Correct)
Bloomberg, 10/25/01
Enron Taps $3 Billion From Bank Lines In Pre-Emptive Move to Ensure Liquidi=
ty --- Firm Will Pay Debt, Keep Cash Cushion
By Wall Street Journal staff reporters John R. Emshwiller, Rebecca Smith an=
d Jathon Sapsford
10/26/2001
The Wall Street Journal
C1
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Enron Corp. drew down about $3 billion, the bulk of its available bank cred=
it lines, in a bid to restore confidence in its financial strength and liqu=
idity.=20
Enron will use part of the money to offer to redeem about $1.85 billion of =
outstanding commercial paper -- short-term corporate IOUs -- according to a=
person familiar with the matter, with the remainder providing the energy c=
oncern with a cash cushion. Some observers believe the move is a pre-emptiv=
e step by Enron to ensure that it had adequate liquidity should its access =
to bank lines be interrupted. The person also said Enron was talking to its=
banks about a new, multibillion-dollar credit line.
Enron insists its business operation and financial condition remain strong.=
But, "when the market is reacting as irrationally as it has been the last =
few days, we thought that cash was better than a commitment from a bank," s=
aid an Enron spokesman. In a statement, the company's new chief financial o=
fficer, Jeff McMahon, said that by drawing down the bank lines, "we are mak=
ing it clear that Enron has the support of its banks and more than adequate=
liquidity to assure our customers that we can fulfill our commitments."=20
The move underscored the tumultuous conditions that have been sweeping over=
the Houston energy-trading concern in the past 10 days. Enron is the natio=
n's largest energy trader and is a principal in nearly one-quarter of all e=
lectricity and natural-gas trades. Yesterday, for example, Enron was involv=
ed in about $4 billion of deals through its EnronOnline unit.=20
Since early last week, Enron's share price has plummeted 50%. Last week, it=
reported a $618 million third-quarter loss and a reduction in shareholder =
equity of $1.2 billion. It also disclosed that the Securities and Exchange =
Commission is conducting an inquiry into billions of dollars of transaction=
s it did with entities connected to its former chief financial officer, And=
rew S. Fastow, who was replaced Wednesday.=20
The draw-down of the credit facilities came as one rating agency, Fitch, pu=
t Enron on review for a possible downgrade, while another, Standard & Poor'=
s, changed Enron's credit outlook to negative from stable. Moody's Investor=
s Service already has said it is looking at a possible downgrade of Enron. =
In order to fall below investment grade, Enron's credit rating would have t=
o fall several notches.=20
If that were to happen, however, a host of bad consequences could follow. T=
ogether with the sharp decline in its stock price, a noninvestment-grade ra=
ting would throw the company into default on obligations involving billions=
of dollars of borrowings. In that event, Enron could be forced to issue mi=
llions of shares of stock to holders of that debt, diluting the value of ex=
isting shares. At 4 p.m. in New York Stock Exchange composite trading, Enro=
n was down six cents at $16.35.=20
Liquidity is a key issue for Enron, which handles energy-trading volumes mo=
re than triple its next-biggest competitor, American Electric Power Co. Enr=
on's EnronOnline Internet-based trading platform has transacted more than $=
884 billion of trades since it was created in November 1999.=20
The company's wildly successful wholesale unit has been dragged down by und=
erperforming assets elsewhere in the company, chiefly the approximately $6.=
5 billion of international assets such as its Dabhol power project in India=
. Raising cash and retiring debt largely is a timing issue. The cash needs =
of its trading operation are immediate; it takes time to sell assets, parti=
cularly in today's slower economy.=20
The company also is suffering from a string of disclosure controversies tha=
t have damaged its credibility, particularly in connection with its dealing=
s with Mr. Fastow, the former chief financial officer. Internal documents r=
elated to one of the Fastow partnerships disclose that Enron also did as mu=
ch as hundreds of millions of dollars of business with an entity connected =
to another company official, who has since left Enron. While Enron disclose=
d its Fastow-related transactions in SEC filings, a computerized search of =
the SEC's database of public filings produced no reference to this other em=
ployee-related entity known as Chewco.=20
Chewco was established in 1997 "with approximately $400 million in capital =
commitments" to buy an interest in Enron assets, according to one of the pa=
rtnerships documents. The document didn't further specify what assets were =
purchased, and it didn't disclose the financial impact of the transactions =
for either Chewco or Enron. Chewco was being run by Michael Kopper, a manag=
ing director in Enron's Global Equity Markets Group, according to the docum=
ent.=20
Enron, which has maintained that its complex financial transactions with em=
ployee-related entities were legal and properly disclosed, didn't have any =
comment regarding its dealings with Chewco.=20
Mr. Kopper, who Enron says left the company this year to focus on helping t=
o run the Fastow-related partnerships, didn't return phone calls. A person =
at his office in Houston yesterday said Mr. Kopper was traveling. In respon=
se to questions about Chewco, an Enron spokesman would say only that "Micha=
el Kopper was never an executive officer of Enron." Mr. Fastow repeatedly h=
as declined interview requests. He severed his relationships with the partn=
erships in July.=20
This statement is an apparent reference to SEC disclosure regulations regar=
ding related-party transactions. Under SEC rule S-K, a company has to repor=
t any transaction that exceeds $60,000 and involves "any director or execut=
ive officer." By contrast, Mr. Fastow, as CFO, would have fallen into that =
category, but Mr. Kopper, as managing director of a business unit, presumab=
ly wouldn't have.=20
However, reporting guidance issued by the Financial Accounting Standards Bo=
ard seems to have a broader definition, one that might include Mr. Kopper. =
According to FAS Statement 57, a related-party transaction involves a "mate=
rial" piece of business between the company and a member of management. The=
statement defines management as directors, top officers, vice presidents i=
n charge of major business units and "other persons who perform similar pol=
icy-making functions. Persons without formal titles may also be members of =
management."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Deals & Deal Makers: Enron Officials Sell Shares Amid Stock-Price Slump
By Theo Francis and Cassell Bryan-Low
Staff Reporters of The Wall Street Journal
10/26/2001
The Wall Street Journal
C14
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Officials at Enron Corp., whose unusual transactions with its chief financi=
al officer are under regulatory scrutiny, have steadily sold sizable amount=
s of their holdings of company stock as the share price has fallen this yea=
r.=20
Corporate officials had sold 1.8 million shares valued at about $106 millio=
n through July, as the stock fell to less than $45 a share from $83 at the =
start of the year. Since July, the stock has plummeted an additional 63% to=
$16.35, including a 50% plunge since the beginning of last week.
Kenneth Lay, chief executive of the Houston energy-trading company, cashed =
in shares for $25.7 million so far this year, usually in transactions paire=
d with options exercises. He sold 429,614 shares, leaving him with some 2.8=
million shares as of July, the latest data available on his sales, accordi=
ng to Thomson Financial/Lancer Analytics.=20
The dollar amount for his 2001 sales is approaching the total for all Mr. L=
ay's sales of Enron shares for 2000, which reached $30.7 million. In 1999, =
he sold shares for a total of $26 million.=20
In Houston, an Enron spokeswoman declined to comment on the figures, saying=
the company doesn't keep a running tally of stockholdings by corporate off=
icials. Enron also wouldn't comment on the number of options held by compan=
y insiders and called the sales "a personal decision." Many sales by Enron =
insiders were concurrent with options exercises or sales followed soon afte=
r option exercises.=20
Strong selling by company officers and directors amid share-price declines =
should raise red flags for investors, says Jonathan Moreland, research dire=
ctor of InsiderInsights.com, who uses insider-trading data to zero in on in=
vestment ideas.=20
Among other insiders selling during the year, Kenneth Rice, former chairman=
and CEO of Enron's broadband unit, sold shares for $23.7 million. Mr. Rice=
has sold 456,966 shares of the 1.5 million shares he was listed as owning =
in Enron's March proxy filing. Former Enron Chief Executive Jeffrey Skillin=
g -- who resigned in August -- sold 160,000 shares for $9.8 million during =
the year. In March, Mr. Skilling owned 1.9 million shares.=20
Messrs. Rice and Skilling couldn't be reached to comment.=20
Overall, Enron's insiders were busier selling shares last year, when they s=
old 5.8 million shares for about $449 million. During 1999, insiders sold 3=
.4 million shares for $123.1 million.=20
Since December 1999, only one Enron executive has reported buying company s=
hares. The buyer was Andrew Fastow, who was ousted during the week as Enron=
's chief financial officer after the company disclosed it was under a Secur=
ities and Exchange Commission investigation into financial ties between the=
company and Mr. Fastow.=20
Mr. Fastow reported purchasing 10,000 Enron shares in August at $36.98 each=
, or a total of $369,800. Today, those shares are valued at $163,500, based=
on Enron's stock price of $16.35 in 4 p.m. New York Stock Exchange composi=
te trading. After the purchase, Mr. Fastow owned 110,586 shares, Thomson Fi=
nancial/Lancer Analytics says.=20
Enron said Mr. Fastow wasn't available to comment.=20
On Monday, a New York law firm filed suit in U.S. District Court in Houston=
, alleging that Enron misrepresented its performance by failing to disclose=
problems with its broadband division and failing to properly write down th=
e value of investments in limited partnerships managed by Mr. Fastow. The s=
uit, which seeks class-action status, also says Enron insiders sold $73 mil=
lion of their own Enron holdings during parts of 2000 and 2001.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Credit Markets
Enron's Financial Troubles Reverberate to Bonds With Poor Liquidity and Cre=
dit-Rating Concerns
By Jathon Sapsford and Suzanne McGee
Staff Reporters of The Wall Street Journal
10/26/2001
The Wall Street Journal
C15
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -- Enron Corp.'s bonds have held up better than its battered stock=
amid escalating financial woes at the energy-trading powerhouse.=20
Not for long, some bond traders say.
In trading yesterday, the Houston company's five-year bond, a $250 million =
issue due in July 2006 carrying a coupon of 6.4%, was quoted at 82 cents on=
the dollar, down from a bid of 88 late Wednesday, and representing a 16% d=
rop during the past two weeks.=20
That is far less than the 50% decline in Enron's stock price since the Oct.=
16 disclosure of a $1.01 billion charge linked to soured investments, resu=
lting in a $618 million third-quarter loss. But the fall in the bond's pric=
e translates to a yield of 7.7 percentage points above bellwether U.S. gove=
rnment bonds, which is a widening from about three percentage points two we=
eks ago. Although Enron still is an investment-grade credit, that kind of "=
spread" is more characteristic of a junk bond with a credit rating of singl=
e B or lower.=20
Enron sought to assure the markets that its finances were sound, disclosing=
late yesterday that it drew down more than $1 billion on its bank credit l=
ines to shore up its finances. Yet even as Enron was tapping its lifeline, =
investors were finding it difficult to trade big blocks of Enron bonds. Yes=
terday's 82 bid, for instance, was for a block of less than $2 million in b=
onds, a small percentage of a typical trade.=20
Fueling the uncertainty surrounding Enron were fears that credit-rating con=
cerns will lower ratings on Enron debt after it recently conceded a slew of=
troubles, including losses, a Securities and Exchange Commission investiga=
tion, and the sudden resignation of its chief financial officer.=20
"Even at these levels, there's very little buying interest," said Harold Ri=
vkin, a principal at distressed-debt trader H. Rivkin & Co. in Princeton, N=
.J.=20
In one sign of the ripple effects, the price investors pay to protect thems=
elves from losses on Enron debt was surging. The cost of a "default swap" -=
- in which an investor pays another investor to take a chunk of debt at fac=
e value in the event of default -- rose to 10% of the size of the credit be=
ing insured. That was up from 8% a day earlier, and more than holders of Lu=
cent Technologies Inc. debt had to pay at the height of that technology com=
pany's troubles earlier during the year.=20
Even with its woes, Enron remains an investment-grade company. Most credit-=
rating agencies rate Enron's senior unsecured debt at several notches above=
the noninvestment-grade level.=20
Yet Fitch said yesterday it put Enron's credit rating on watch for a possib=
le downgrade, following a similar move by Moody's Investors Service last we=
ek. (Standard & Poor's, a division of McGraw Hill Cos., stopped short of pu=
tting the company on its Creditwatch list, opting instead to revise its lon=
g-term ratings outlook to "negative," citing concerns about the company's f=
inancial flexibility.)=20
Meanwhile, the weak bond prices are a sign that the markets are bracing for=
the worst. "These are investment-grade bonds that are migrating toward dis=
tressed levels," said Glenn Reynolds, an analyst at Credit Sights Inc., an =
independent fixed-income research firm in New York. "They aren't distressed=
yet, but they are headed in that direction."=20
If Enron's credit ratings fall, it would have implications far beyond the c=
ompany's ability to raise money. For an energy trader, a credit downgrade s=
ends a signal to other participants in crucial markets about its ability to=
make good on its commitments.=20
Enron makes markets in a variety of commodities. Though it is best known fo=
r trading electricity and natural gas, the company also is a huge force in =
the markets for other commodities such as lumber, metals, bandwidth capacit=
y and steel. As a market maker matching buyers and sellers, Enron handles a=
bout a quarter of all the trading in the nation's energy and gas markets.=
=20
Enron's credit-worthiness is hugely important. The better its credit rating=
, the cheaper it can hedge, or offset, its positions in all these commoditi=
es markets through derivatives and pass on savings to customers. Without th=
at credit rating, the cost of this high-margin, high-volume business starts=
to rise. A derivative is an instrument whose value is linked to, or derive=
d from, that of an underlying security or asset, such as a stock, bond or c=
ommodity.=20
"Even if the company does retain its investment-grade rating, the perceptio=
n that this might be at risk will start to affect their core businesses," s=
aid Mr. Reynolds at Credit Sights Inc. "Any prudent risk [manager] at Enron=
's counterparties" -- any institution on the other end of a financial agree=
ment with Enron -- "is going to be examining their exposure to Enron, and l=
ooking for ways to minimize it or offset it," Mr. Reynolds said.=20
To be sure, Enron, despite its recent woes, remains a strong company, credi=
t analysts said. "I don't think anyone's seriously thinking that this is a =
company that would ever default," Mr. Reynolds said.=20
"So far, our research shows that their counterparties and their banks are s=
ticking with them," said Ron Barone, managing director of Standard & Poor's=
utility energy project finance group. "No one has cut credit lines or aske=
d for additional collateral that we have identified. And customers have pub=
licly stated that it's business as usual."=20
Yet analysts say the arrival of distressed-debt traders on the scene could =
make life more difficult for Enron and its management. Traders expect Enron=
's new Chief Financial Officer Jeffrey McMahon and Chairman Kenneth Lay to =
make the rounds of Wall Street next week, meeting with rating agencies, deb=
t-trading desks, big bond holders and banks, including J.P. Morgan Chase & =
Co. and Citigroup Inc.=20
Treasurys=20
Treasurys rallied on optimism that the Federal Reserve may cut interest rat=
es more than previously expected after a spate of economic reports that doc=
umented how weak the economy was after the Sept. 11 terrorist attacks.=20
Prices also gained as the market finished digesting the week's flood of Tre=
asury, corporate and agency debt issues.=20
At 4 p.m. EDT, the benchmark 10-year Treasury note was up 13/32 point, or $=
4.0625 per $1,000 face value, at 103 20/32. Its yield fell to 4.537% from 4=
.588% Wednesday, as yields move inversely to prices.=20
The 30-year Treasury bond's price was up 22/32 point at 101 11/32 to yield =
5.284%, down from 5.330% Wednesday.=20
Fed policy makers are slated to meet on Nov. 6. Also providing support for =
longer maturities, the Treasury Department made another repurchase of issue=
s outstanding. It received offers for $5.04 billion in callable 30-year bon=
ds, of which it accepted $1 billion. The offer-to-cover ratio, an indicatio=
n of demand, was 5.04.=20
TREASURY BUYBACK
Par Par High Wtd Avg
Coupon Mat Amt Amt Accept Accept
% Date Offer Accept Price Price
7.125 02/23 807 0 N/A N/A
11.750 02/10 235 0 N/A N/A
10.000 05/10 490 0 N/A N/A
12.750 11/10 471 0 N/A N/A
13.875 05/11 104 0 N/A N/A
14.000 11/11 203 0 N/A N/A
10.375 11/12 587 0 N/A N/A
12.000 08/13 974 0 N/A N/A
13.250 05/14 473 0 N/A N/A
12.500 08/14 725 39 3152.20 152.19
11.750 11/14 7826 0 7148.25 148.13
Amounts in millions, prices in decimals.
*Amount outstanding after operation. Calculated using amounts
reported on announcement.=20
Corporate Bonds=20
Motorola Inc.'s offering of three-year mandatory convertible securities, ex=
pected late yesterday was boosted from a planned $875 million and could tot=
al as much as $1.15 billion (proceeds) if investors exercise their overallo=
tment option.=20
The securities were expected to have a dividend of between 6.75% and 7% and=
a conversion premium of 20% to 22%. Earlier indications were a dividend of=
7% to 7.5% and a conversion premium of 18% to 22%. The deal was to come th=
rough Goldman Sachs, J.P. Morgan Chase and Salomon Smith Barney.=20
Separately, LSI Logic Corp. repriced an offering of $450 million of five-ye=
ar convertible subordinated notes, lowering the price to 99 from par, peopl=
e familiar with the Rule 144a private placement said.=20
The notes have a 4% coupon and a 41% conversion premium and now offer a yie=
ld-to-maturity of 4.22%. They were quoted lower at 98 1/2 early yesterday, =
a sign that the deal wasn't well-received after being brought overnight by =
Lehman Brothers.=20
---=20
John Parry and Tom Barkley contributed to this article.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Heard on the Street
Most Analysts Remain Plugged In to Enron
By Susanne Craig and Jonathan Weil
Staff Reporters of The Wall Street Journal
10/26/2001
The Wall Street Journal
C1
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Enron: Rarely have so many analysts liked a stock they concede they know so=
little about.=20
In recent years, Wall Street researchers have been overwhelmingly -- critic=
s would say blindly -- enthusiastic about Enron, even as they acknowledge n=
ot always understanding the complex financial transactions that accounted f=
or its soaring profits. Now, Enron is reporting steep losses from some of i=
ts most complicated transactions, which many on Wall Street still can't fig=
ure out.
In a research note Wednesday, Goldman Sachs analyst David Fleischer concede=
d that scant corporate disclosure at the Houston energy trader makes it dif=
ficult to value the company. The company's "lack of disclosure and transpar=
ency," he says, is "a longstanding Enron hallmark."=20
So is this a stock to avoid, in his view? Hardly. Goldman on Wednesday did =
bump Enron off its "U.S. Select List," which consists of a few dozen top st=
ock picks -- but Mr. Fleischer continued to keep the stock on the firm's la=
rger but prestigious "Recommended List" of 200 or so favored stocks, where =
it has been since he joined Goldman in 1993.=20
"Just because I can't be specific in being able to create a simple model . =
. . doesn't mean that you write off that industry and say `I can't analyze =
it' or `I can't figure it out,' " says Mr. Fleischer, who owns an undisclos=
ed number of Enron shares. "If that were the case, there would be an awful =
lot of industries we couldn't follow."=20
Enron's shares have dropped about 50% since last week.=20
"Every sell-side analyst we spoke to early in 2001 admitted that this was a=
black box," says Jim Chanos, principal of Kynikos Associates in New York, =
who has been selling Enron stock short -- trading it with an eye to profiti=
ng from its fall -- throughout this year. "It was really a trust-me story, =
when all the evidence was mounting that there was reason to question that l=
evel of trust."=20
True, no stock picker is immune from bad calls. And Wall Street analysts lo=
ng have been criticized for their overwhelmingly bullish bias, particularly=
on stocks in hot sectors with lots of investment-banking deals to be had.=
=20
But Enron stands apart, precisely because so many of the analysts still rec=
ommending the stock have acknowledged that the company's disclosure practic=
es are lacking. Which raises the question: How can an analyst recommend tha=
t others purchase a stock when key information about the company's operatio=
ns is so often either unavailable or indecipherable?=20
Concerns about the way that Enron runs its business aren't new. Many of the=
issues now plaguing Enron's stock were first raised more than a year ago b=
y bearish hedge-fund managers and independent accounting experts. Yet time =
and again, Wall Street analysts dismissed as unimportant many of the linger=
ing questions about the company's various partnership transactions.=20
Besides those partnerships, Enron also has been dogged by concerns about th=
e secretive valuation techniques it uses to record its assets and earnings.=
=20
Through it all, most analysts have stuck by this onetime stock-market darli=
ng, publicly dismissing questions about the firm's accounting practices and=
level of disclosure. As of yesterday, of the 17 analysts who following the=
stock, 10 had a "strong buy" or equivalent rating on the stock, according =
to Thomson Financial/First Call. Five others rated the stock a "buy," thoug=
h not strongly.=20
Only Prudential Securities, which downgraded the stock this week, has a "se=
ll" rating on Enron.=20
The bullish treatment is the latest and one of the most high-profile exampl=
es of Wall Street taking a glass half-full stance, despite what in retrospe=
ct seems to be ample warning that a less-enthusiastic approach was warrante=
d.=20
Over the past year in the wake of the Nasdaq Composite Index's general coll=
apse, analysts have been widely assailed for a lack of independence -- part=
icularly those who, like Goldman's Mr. Fleischer, own shares in the compani=
es they cover. Regulators have raised concerns that analysts have compromis=
ed themselves to help their firms land lucrative investment-banking fees an=
d other revenue.=20
Enron has spread the wealth across many Wall Street firms. For instance, fo=
r one $865 million equity offering in 1999 led by `Credit Suisse First Bost=
on, Enron retained seven co-managers, including Donaldson Lufkin & Jenrette=
, Lehman Brothers and Merrill Lynch.=20
"Enron is a big company, and I don't think you're going to find a firm that=
hasn't been involved," says Credit Suisse First Boston analyst Curt Launer=
, who still rates the stock a "strong buy" with a $40 price target. "They p=
ay a lot of investment-banking fees to Wall Street."=20
He adds, "We do our analysis every day based on the information we have. Ar=
e we here strictly to defend companies? That's ludicrous. We're here to pro=
vide information to investors. . . . Yes, I have the wrong recommendation o=
n the stock. I don't think my analysis has been as wrong as the stock has p=
erformed."=20
Mr. Fleischer, whose firm also has served as an investment banker to Enron,=
calls his holding "a meaningful investment" that is "not small." But he di=
sputes any suggestion that his objectivity is compromised. Mr. Fleischer sa=
ys his clients "are happy to know" he has a stake in Enron, because it show=
s he puts his money where his mouth is.=20
In his research note Wednesday, Mr. Fleischer called for complete disclosur=
es of Enron's off-balance sheet partnerships. Despite the resulting difficu=
lty he acknowledged facing in developing financial models for the company, =
he wrote that he and many other investors historically "have given Enron th=
e benefit of doubt because of its strong growth in earnings" and position a=
s an industry leader.=20
"There's not information to really model this and be able to predict accura=
tely where revenues are going to come from and where they're going to make =
their money, but every quarter they do," he says. "It's hard to get inside =
to know all the transactions, but they do deliver."=20
CSFB's Mr. Launer also has been a longtime defender of the company, occasio=
nally issuing research reports to rebut critical stories about Enron in the=
financial press. On Monday, he wrote that he expects questions about Enron=
's partnerships and accounting disclosures to continue, but that he remains=
"confident in the businesses and operating growth prospects for [Enron] an=
d an ultimate recovery in the share price."=20
"I know I'm wrong on the stock," Mr. Launer says. But he says that at these=
prices, he isn't ready to throw in the towel because he figures that even =
in a worst-case scenario -- under which he envisions Enron having to issue =
as much as $2 billion worth of shares, diluting current holders -- the stoc=
k doesn't have much further to fall.=20
Clearly, Messrs. Launer and Flesicher aren't alone. "Even in relative terms=
, analysts remain very bullish on this stock," says Chuck Hill, director of=
research at Thomson Financial/First Call. The average rating for a stock o=
n Wall Street is 2.2, or slightly shy of a "buy" rating. Enron scores a 1.6=
. "This may turn into a classic case of locking the barn door after the bad=
news is out," Mr. Hill says.=20
In downgrading the stock this week, Prudential analyst Carol Coale bumped i=
t to "sell" from "buy," with a brief stop at "hold." While she is the only =
analyst to recommend investors sell the stock, she openly concedes her rece=
nt downgrades come "too little, too late."=20
Ms. Coale says Enron has been difficult to cover for years. She says the co=
mpany's disclosure practices fall far short of ideal, and senior executives=
are often evasive, even when presented with direct questions. For instance=
, she says three weeks ago she asked Enron management if the company was un=
der investigation by the Securities and Exchange Commission. They said "no,=
" she says.=20
In light of the company's acknowledgment this week of an SEC "inquiry," she=
asked Enron about the previous denial. "They told me it is an inquiry, not=
an investigation," she says. An Enron spokeswoman says the company learned=
of the SEC's inquiry only last Wednesday.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron Draws Down $3 Bln in Credit to Boost Investor Confidence
2001-10-26 08:52 (New York)
Enron Draws Down $3 Bln in Credit to Boost Investor Confidence
Houston, Oct. 26 (Bloomberg) -- Enron Corp., whose stock has
fallen on concern about the largest energy trader's transactions
with affiliates, drew down $3 billion in credit to restore
confidence in its financial strength.
The Houston-based company will use about $2.2 billion to pay
off commercial paper obligations and keep the rest as cash,
spokesman Mark Palmer said.
``Nothing instils confidence like cash,'' he said.
Enron's shares have dropped 52 percent in the past 10 days as
investors worry that the company's credit rating will be cut after
$1.01 billion in third-quarter losses from failed investments.
Enron needs good credit to raise cash daily to keep trading
partners from demanding collateral and to settle transactions.
Investors say they are worried about $3.3 billion in
liabilities from affiliates formed to buy and sell Enron assets.
Enron ousted Chief Financial Officer Andrew Fastow on Wednesday
amid a Securities and Exchange Commission inquiry into
partnerships he ran that cost the company $35 million.
Jeff McMahon, head of Enron's industrial markets group, was
named CFO in a bid to restore investor confidence, Chairman and
Chief Executive Officer Kenneth Lay said in a statement.
Enron shares fell 6 cents to $16.35 yesterday.
--Mark Johnson in the Princeton newsroom (609) 750-4662, or at
Enron Liked By Analysts Despite Complicated Dealings, WSJ Says
2001-10-26 06:12 (New York)
Houston, Oct. 26 (Bloomberg) -- Enron Corp. is liked by many
Wall Street analysts despite lingering questions about the power
trading company's complicated partnership transactions and the
techniques used to record earnings, the Wall Street Journal
reported in its ``Heard on the Street'' column.
Goldman Sachs Group Inc. analyst David Fleischer, who owns an
undisclosed number of Enron shares, said that even though
inadequate corporate disclosure makes it difficult to value the
company, that doesn't mean he will write off the industry or not
analyze Enron.
Of the 17 analysts who follow the stock, 10 had a ``strong
buy'' or equivalent rating, according to Thomson Financial/First
Call, the paper said. Five rated it ``buy'' and one had a ``sell''
on Enron.
Most analysts have stuck by the company, publicly dismissing
questions about Enron's accounting practices and level of
disclosure, the Journal said.
The Securities and Exchange Commission is inquiring about
partnerships run by former Chief Financial Officer Andrew Fastow.
Enron Draws Down $3 Billion From Its Credit Lines, WSJ Reports
2001-10-26 00:28 (New York)
New York, Oct. 26 (Bloomberg) -- Enron Corp. drew down about
$3 billion of its available credit, the bulk of its bank credit
lines, to restore confidence in the financial strength of the
company, the Wall Street Journal reported.
The energy trading company, whose shares have fallen 52
percent since Oct. 16, will use part of the money to redeem about
$1.85 billion short-term commercial debt, the Wall Street Journal
reported, citing an unidentified person familiar with the matter.
Enron is talking to banks about a new, multi-billion line of
credit, the paper reported, citing the unidentified person. The
steps are seen as an effort by the energy trader to ensure that it
has adequate liquidity in case its access to bank credit is
disrupted, the paper said.
Enron said in a statement distributed by PR Newswire that it
drew on its credit lines to provide more than $1 billion in cash
liquidity. The steps come a day after Chief Financial Officer
Andrew Fastow resigned amid a Securities and Exchange Commission
probe of partnerships he ran.
--William Selway in the San Francisco newsroom at (415) 743-3511,
Oct. 25, 2001, 11:22PM
Houston Chronicle
Action by Enron halts stock's fall=20
But credit ratings are being reviewed=20
By LAURA GOLDBERG=20
Copyright 2001 Houston Chronicle=20
The recent freefall of Enron Corp.'s stock price stabilized Thursday, a day=
after the world's largest energy trader replaced its chief financial offic=
er.=20
Enron, under a cloud for a number of reasons, including an Securities and E=
xchange Commission inquiry, also made two announcements Thursday night aime=
d at reassuring the financial community.=20
In the announcements, Enron said it had drawn more than $1 billion from its=
lines of credit and said that energy-trading business done through EnronOn=
line on Thursday was above average levels.=20
Houston-based Enron banked the money and has no plans to spend it, a spokes=
woman said.=20
"We are making it clear that Enron has the full support of its banks and mo=
re than adequate liquidity to assure our customers that we can fulfill our =
commitments in the ordinary course of business," Jeff McMahon, who took ove=
r Wednesday as chief financial officer, said in a written statement.=20
Enron said it recorded more than 8,300 transactions through EnronOnline on =
Thursday.=20
Ken Lay, chairman and chief executive officer, said: "Enron continues to be=
the market-maker of choice in wholesale and gas power markets, our custome=
rs continue to put their confidence in us, and our core businesses are stro=
ng and performing well."=20
Earlier Thursday, two credit rating agencies took actions regarding Enron's=
ratings, which J.P. Morgan Securities analyst Anatol Feygin described as "=
just more negative sentiment."=20
At one point in Thursday morning trading on the New York Stock Exchange, sh=
ares in Enron were up more than $1.50, but they closed down 6 cents at $16.=
35. As recently as Oct. 16, the stock closed at $33.84.=20
Before the market closed, international credit-rating agency Fitch put Enro=
n, which currently holds investment-grade credit ratings, on review for a p=
ossible downgrade. Then after the market closed, Standard & Poor's took two=
steps: It affirmed Enron's current ratings, but it also revised its long-t=
erm ratings outlook to negative.=20
Moody's Investors Service put all of Enron's long-term debt on review for p=
otential downgrade last week.=20
Enron, which noted that losing its investment-grade rating would take downg=
rades of three notches, said Thursday it will do everything in its power to=
defend its current rating.=20
In the SEC inquiry, federal securities regulators are reviewing transaction=
s between Enron and two private investment partnerships formerly run by And=
rew Fastow, who was removed as Enron's chief financial officer Wednesday. E=
nron removed Fastow as part of its bid to repair its damaged credibility.=
=20
Wall Street is also questioning certain of Enron's financing vehicles and i=
s wondering whether the company will face hits to its balance sheet in the =
months ahead.=20
S&P said it was concerned that the sizable drop in Enron's market capitaliz=
ation has negatively affected its financial flexibility and could hurt the =
company's plans to rebuild its balance sheet.=20
But it also noted that the "fundamental strength" of Enron's energy marketi=
ng and trading business has remained steady.=20
Unless Enron's rebuilds confidence among investors and business partners, F=
itch said, it could "impair Enron's financial flexibility and access to cap=
ital markets," which would hurt its ability to conduct business.=20
Carol Coale, an analyst at Prudential Securities in Houston, said the actio=
ns by S&P and Fitch might make some of Enron's energy customers skittish.=
=20
Corporate US on track for bailout
DAVID GOW IN NEW YORK
10/26/2001
The Guardian
Copyright (C) 2001 The Guardian; Source: World Reporter (TM)
Battered corporate America will receive an immediate Dollars 25bn (pounds 1=
8bn) tax rebate under a Dollars 100bn eocnomic stimulation package just app=
roved by the Republican-controlled House of Representatives.=20
The controversial package, worth an estimated Dollars 212bn over three year=
s, includes Dollars 70bn for companies next year alone. It was approved by =
the House late on Wednesday by 216 votes to 214, but faces significant amen=
dment in the Senate, which is now under Democrat control.
It has reopened a wide ideological rift between Republicans, who favour cor=
porate and individual tax cuts to reboot an economy mired in recession, and=
Democrats - who, in a reprise of the Roosevelt "new deal", prefer to see i=
ncreased public spending on unemployment and infrastructure projects.=20
Liberal lobby groups such as the Citizens for Tax Justice and the Center on=
Budget and Policy Priorities claim the bill would hand back Dollars 6.3bn =
to the 14 biggest corporations - which, they say, are renowned for paying l=
ittle or no tax.=20
The most hotly contested measure is the repeal of the corporate alternative=
minimum tax, or AMT, introduced in 1986 to make sure firms could not avoid=
all tax payments. This, strongly supported by President Bush, would be mad=
e retroactive so that all AMT payments would be refunded.=20
The lobby groups and the non-partisan Congressional Research Service calcul=
ate that this would give a Dollars 1.4bn boost to computer group IBM alone,=
while General Motors would get back Dollars 833m and General Electric Doll=
ars 671m.=20
Others to benefit include TXU, the Texas-based utility that is the US's thi=
rd largest energy supplier, which would would be given Dollars 608m. United=
Airlines, the US's second largest carrier - which is warning of bankruptcy=
- would receive Dollars 371m, and Enron, the energy trading group forced t=
o sack its finance director this week, would be given Dollars 254m.=20
Democrat leaders in the Senate are determined to erase this measure and dis=
like other proposals to boost firms, which include a 30% tax break for capi=
tal investment over three years worth Dollars 39.3bn this year alone. They =
say these amount to a "giant corporate giveaway".=20
Mr Bush and other Republican leaders argue these fiscal concessions would h=
elp companies making hundreds of thousands redundant avoid further lay-offs=
and invest more, prompting an economic recovery that, at best, is likely t=
o start in the new year.=20
"Businesses are America's employers. They're the hardware store, the diner =
down the street, the gas station on the corner. They're not the enemy of wo=
rking families," the author of the plan, Representative Bill Thomas of Cali=
fornia, said.=20
Democrats are especially incensed with the alleged paucity of the package's=
provisions for the growing numbers of jobless, arguing that much of the Do=
llars 12bn foreseen would not go to individuals but into the reserves of st=
ates.=20
* A fresh round of global trade talks is essential to revitalise the world =
economy after the terrorist attacks on the US, trade secretary Patricia Hew=
itt said yesterday, writes Charlotte Denny=20
As a new report predicted that global trade growth will collapse this year,=
Ms Hewitt warned that the world must not retreat into protectionism or iso=
lationism in the wake of the attacks. WTO trade ministers are gathering in =
Doha, Qatar, in two weeks' time to discuss launching a new round of talks, =
the first since the collapse of their meeting in Seattle, nearly two years =
ago.=20
Full coverage of the downturn at www.guardian.co.uk/recession/
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business/Financial Desk; Section C
Harvey Pitt's S.E.C.: From Guard Dog to Friendly Puppy?
By FLOYD NORRIS
10/26/2001
The New York Times
Page 1, Column 2
c. 2001 New York Times Company
CAN the new, friendlier Securities and Exchange Commission enforce the laws=
and assure investors that corporate financial reports are trustworthy?=20
Harvey L. Pitt, the new S.E.C. chairman, set out this week to show that he =
is not like his predecessor, Arthur Levitt. In a speech to the American Ins=
titute of Certified Public Accountants -- an organization whose senior lead=
ership led a bitter and ultimately unsuccessful fight against Mr. Levitt's =
reform efforts -- Mr. Pitt praised his listeners and took a few swipes at h=
is predecessor.=20
From now on, he promised, ''the commission will make sound decisions, in a =
respectful, affirmative way, not in a demeaning, demanding or demonizing wa=
y.'' He spoke favorably of ''pro forma'' earnings reports, in ways that no =
doubt heartened accountants who have worked so hard to find ways to make ev=
en the worst profit figures look pretty. There was no mention of Mr. Levitt=
's concerns about improper management of earnings.
On the heels of Mr. Pitt's speech, the S.E.C. used a minor enforcement acti=
on to herald a policy of not cracking down on companies that come forward t=
o report their own errors. The decision itself was reasonable, although one=
could wonder if top management did something wrong in failing to detect a =
fraud that went on for years. But the way the S.E.C. trumpeted it raised qu=
estions about whether the agency is turning into a friendly puppy rather th=
an a guard dog. ''Is this amnesty for financial fraud?'' Jane Adams, the ac=
counting analyst at Credit Suisse First Boston and a former S.E.C. staff me=
mber, asked in a report to clients. She was not sure of the answer.=20
In an interview yesterday, Mr. Pitt dismissed such worries. ''No one is goi=
ng to get away with anything,'' he said. ''What we are trying to do is crea=
te an environment where people feel comfortable'' and can talk to the S.E.C=
. ''without feeling we are looking for a big splash.''=20
A major embarrassment for accountants is having the S.E.C. force a client t=
o restate its numbers. Mr. Pitt and his chief accountant, Robert Herdman, a=
re sending signals that fewer such demands will be made. ''I am very much i=
n favor of a vigorous enforcement program,'' Mr. Pitt said in the interview=
, ''but I am not in favor of having investors barraged by conflicting state=
ments and restatements.''=20
Mr. Pitt talks of companies ''getting it right the first time,'' which woul=
d certainly be nice. But there is a risk that companies will become more ag=
gressive in their accounting, figuring there will be no real penalty, like =
a restatement, if they are caught. That would make life harder for auditors=
who try to resist misleading accounting.=20
In trying to sound comforting to the accountants' group -- an organization =
that, as he noted, he had represented as a lawyer for two decades -- Mr. Pi=
tt has done little to reassure investors of his independence.=20
The proof, of course, will come in the performance. Fortunately, the mess a=
t Enron gives the S.E.C. a golden opportunity to counter the puppy image. I=
t will take time for the commission to determine if the company's accountin=
g was proper. But there need be no delay in forcing Enron to clearly explai=
n -- rather than obfuscate as it has so far -- the strange deals it made wi=
th partnerships run by the executive just ousted as chief financial officer=
.=20
''This could,'' a former S.E.C. staff member said, ''focus the issue on whe=
ther companies can make completely correct but totally misleading disclosur=
es.'' And it would indicate that this watchdog still has a bite.
Photo: Harvey L. Pitt=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron draws down at least 1 bln usd from credit lines to boost mkt confiden=
ce
10/26/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
HOUSTON (AFX) - Enron Corp said it drew on committed lines of credit to pro=
vide cash liquidity in excess of 1 bln usd as part of moves to restore mark=
et confidence in the company.=20
"We are making it clear that Enron has the support of its banks and more th=
an adequate liquidity to assure our customers that we can fulfill our commi=
tments in the ordinary course of business," said newly appointed Chief Fina=
ncial Officer Jeff McMahon.
"This is an important step in our plan to restore investor confidence in En=
ron. Additionally, we will update investors over the next several days rega=
rding our plans to maintain our long-term credit rating."=20
According to the Wall Street Journal, Enron drew down about 3 bln usd and w=
ill use part of the money to offer to redeem about 1.85 bln usd of outstand=
ing commercial paper, with the remainder providing the energy concern with =
a cash cushion. The newspaper cited a person familiar with the matter.=20
It quoted observers as saying the move may be is a pre-emptive step by Enro=
n to ensure that it had adequate liquidity should its access to bank lines =
be interrupted.=20
The source also said Enron is talking to its banks about a new, multi-billi=
on-dollar credit line.=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
The Five Dumbest Things on Wall Street This Week
By K.C. Swanson <mailto:[email protected]>
Staff Reporter
10/26/2001 07:08 AM EDT
URL: <http://www.thestreet.com/markets/dumbest/10003035.html>
TheStreet.com
1. United Airlines Just a Little Too Honest
Rule No. 1 in CEO school: Never say that your company may soon collapse.=20
Seems kind of obvious, but that rule was flouted by United Airlines chief J=
ames Goodwin, who warned in a letter to employees that the company "will pe=
rish" next year unless it can stanch its tremendous losses, which have wors=
ened since the terrorist attacks. "Today, we are literally hemorrhaging mon=
ey," he wrote.=20
In raising concerns about the financial viability of United, a unit of UAL =
(UAL:NYSE - news - commentary) , Goodwin only put into words what outsiders=
have speculated about. Since Sept. 11, the airline has laid off about 20,0=
00 of its 100,000 employees and cut flights by as much as 25%. It's expecte=
d to announce massive losses when it reports third-quarter earnings.=20
But in response to the disclosure, Goodwin has been roundly attacked. Feeli=
ng that he had been all too honest, investors have knocked an additional 24=
% off the stock's value. The shares are down 54% since Sept 11. Meanwhile, =
UAL union leaders reportedly say Goodwin has exaggerated company difficulti=
es to gain bargaining leverage in union negotiations. The leaders of one un=
ion have petitioned the company's board of directors to have him sacked.=20
Bottom line: CEOs may get pilloried when they try to dodge the truth, but s=
ometimes it doesn't pay to be too candid about worst-case scenarios, either=
. Especially when that scenario is the company's own demise.=20
2. Forget the Victory Gardens; Let's Have a Comfortable War=20
Sure, we're at war with a band of cave-dwelling outlaws hell bent on our an=
nihilation. But would all freedom-loving Americans please go out and buy so=
me DVD players? Maybe even a nice new car?=20
That was basically the message from the Treasury Department, on news that C=
ongress had voted for the creation of war bonds to finance antiterrorism ef=
forts and rebuilding following the attacks. Officials at Treasury applauded=
the sentiment, then politely suggested it would be even better for the eco=
nomy if Americans just went to stores and bought stuff. "The economy is per=
haps our greatest asset as we move forward in these efforts to fight the wa=
r on global terrorists," says Betsy Holahan, a department spokesperson. "Wa=
r bonds are an additional way for Americans to show their patriotism."=20
For the record, we don't think an issue of war bonds would be dumb, just su=
perfluous. After all, nothing's stopped Americans from buying generic savin=
gs bonds -- or better yet, Treasuries -- all of which finance spending by t=
he federal government.=20
In the meantime, it's a little dislocating to hear politicians talk up war =
bonds -- which most people associate with hardship and sacrifice -- at the =
same time top economic gurus are practically begging people to shop. War bo=
nds notwithstanding, we're a long way off from the era of ration books.=20
3. Enron Again
Last week, we noted the extent of alarm about Enron's (ENE:NYSE - news - co=
mmentary) revelation that its shareholder equity had dropped $1.2 billion, =
following some unusual and possibly inappropriate high-level transactions. =
Following that disclosure, besieged CFO Andrew Fastow has finally left the =
company on what's delicately termed a "leave of absence."=20
In July, Fastow exited a limited partnership, from which he had reportedly =
reaped large profits, after shareholders and analysts objected to his invol=
vement. Concerns about those dealings and others had increased in the wake =
of the disclosure about the charge to equity until even management acknowle=
dged Fastow would have to go as a prerequisite to restoring investor confid=
ence.=20
But that won't be an easy task, given the resentment about Enron's disincli=
nation to explain its problems. One analyst called Fastow's departure "unse=
ttling," noting that management had given the CFO its endorsement only the =
day before. Sounding a note of exasperation, analysts at J.P. Morgan Chase,=
Banc of America Securities and Prudential all downgraded the stock. And th=
ere could be more trouble to come: The Securities and Exchange Commission h=
as issued Enron a letter of inquiry related to some of its transactions.=20
4. Gold Diggers=20
It's understandable that investors felt panicky in September. Unfortunately=
, some reacted by shoving their hard-earned money into gold funds. Accordin=
g to Financial Research Corp., which tracks fund flows, the specialty preci=
ous-metals category was the best-selling equity category during September, =
with net inflows of $101 million.=20
Granted, that's not a huge sum in the mutual fund world. By comparison, dur=
ing the same month, large growth funds saw net redemptions of $7.4 billion.=
But the fact that so many people are jumping into precious metals is notew=
orthy, given that gold funds have performed so badly for so long.=20
Sure, under the bizarre circumstances of late, they've enjoyed somewhat of =
a pop. According to Morningstar, the average precious-metals fund is up 10.=
08% year to date. But over the past five years, the same category lost an e=
mbarrassing 14.68%. By comparison, even large-cap growth funds -- everybody=
's favorite whipping boy -- managed to post a positive return. In the same =
period, they were up 7.13%.=20
Moreover, circumstances that would seem to be the most favorable in decades=
-- a combination of attacks on the U.S. government and war -- still don't =
seem to have boosted gold prices significantly. Despite an initial surge in=
prices after the terrorist attacks, they're again approaching their pre-Se=
pt. 11 levels. It's too early to say, but it's likely the gold bugs will co=
nfront disappointment once again.=20
5. Amazon Amazes Once Again
Amazon (AMZN:Nasdaq - news - commentary) still maintains it will become pro=
fitable by the fourth quarter. Well, at least it will post a pro forma oper=
ating profit.=20
OK, so maybe that wouldn't include Amazon's service on $2.17 billion in lon=
g-term debt or extraordinary charges. In fact, a pro forma operating profit=
is basically just an accounting concept that would lend a fuzzy, meaningle=
ss aura of minor triumph. The company still hasn't said when it will turn a=
n economic profit.=20
For that matter, even the fourth-quarter prediction is iffy. After announci=
ng the company expected to turn the pro forma operating profit, CFO Warren =
Jenson added the humble qualifier, "There are no guarantees." Amazon simult=
aneously lowered its forecast for fourth-quarter revenue, predicting that s=
ales would be somewhere between flat and up by 10% compared with a year ago=
.=20
Third-quarter trends weren't encouraging. Though sales overall were up slig=
htly in the third quarter from a year ago, revenue from the company's core =
books and music business actually fell 12%. At least the company has made p=
rogress in cutting costs: A spokesperson says pro forma operating expenses =
have decreased by 20% over the past year.=20
Incidentally, in the wake of Amazon's earnings report, two analysts made th=
e belated decision to cut their ratings on the stock, which has fallen 93% =
from its high back in December 1999. Merrill Lynch analyst Henry Blodget an=
d SG Cowen analyst Scott Reamer downgraded the stock to "neutral" from prev=
ious buy ratings. "We thought there might be upside to our estimates," note=
d Blodget. "There wasn't."=20
Financial
Stocks Post Gains After A Rough Morning
Associated Press
10/26/2001
The Washington Post
FINAL
E03
Copyright 2001, The Washington Post Co. All Rights Reserved
NEW YORK, Oct. 25 -- Selected buying of technology and energy shares pulled=
the stock market higher today, reversing a morning slide triggered by a pa=
ir of grim economic reports.=20
Shares of semiconductor makers and equipment manufacturers did particularly=
well, as did energy traders, led by a surprisingly strong performance from=
Williams Cos., a Tulsa-based energy firm that had an 83 percent jump in th=
ird-quarter net earnings.
The Dow Jones industrial average closed rose at 9448.78, up 103.16, reversi=
ng an earlier deficit of 167 points. The Nasdaq composite index rose 36.29,=
to 1767.83, and the Standard & Poor's 500 index was rose 12.79, to 1097.99=
.=20
Earlier, a pair of dismal economic reports had compounded worries about the=
fallout from last month's terrorist attacks to send stocks lower. As in re=
cent sessions, however, investors absorbed the bad news and focused on good=
news regarding individual companies.=20
Williams Cos. surpassed analysts' estimates for the third quarter and raise=
d its forecasts for full-year earnings for 2001 and 2002. Investors rewarde=
d the company by driving its shares up $1.42, to $27.32, bringing several o=
ther parts of the energy sector along with it.=20
Even the shares of Enron rose, a day after the embattled company dismissed =
its chief financial officer and replaced him with an another executive from=
within the company. Enron rose 28 cents, to $16.69.=20
Semiconductor shares also rebounded, led by industry bellwether Intel, up 4=
4 cents at $25.92, and Applied Materials, up $1.35 at 36.69. Leading data-s=
torage maker EMC rose $1.06, to $13.54.=20
Traders said the Senate's passage this afternoon of an anti-terrorism measu=
re also helped lift investor sentiment. Late Wednesday, the House passed a =
$100 billion economic stimulus package to combat the effects of the terrori=
st attacks on the economy.=20
A surprisingly large drop in orders for durable goods had weighed heavily o=
n the market in the morning, as did poor earnings results from American Int=
ernational Group and WorldCom.=20
The Commerce Department reported orders plunged in September for the fourth=
consecutive month. The 8.5 percent decline was far worse than the 1.3 perc=
ent dip many analysts had forecast.=20
The Labor Department also reported that the number of newly laid-off Americ=
ans filing for unemployment benefits rose by 8,000 last week, to 504,000, t=
he second-highest figure in nearly a decade and a level that is generally a=
ssociated with recessions.=20
Other Indicators=20
* The New York Stock Exchange composite index rose 5.88, to 562.96; the Ame=
rican Stock Exchange index rose 5.10, to 828.67; and the Russell index of 2=
,000 small stocks rose 8.31, to 435.96.=20
* Advancing issues outnumbered declining ones by 9 to 7 on the NYSE, where =
trading volume rose to 1.38 billion shares, from 1.35 billion on Wednesday.=
On the Nasdaq, advancers outnumbered decliners by more than 3 to 2 and vol=
ume totaled 2.2 billion, up from 1.84 billion.=20
* The price of the Treasury's 10-year note rose $4.38 per $1,000 invested, =
and its yield fell to 4.54 percent, from 4.59 percent late Wednesday.=20
* The dollar rose against the Japanese yen and the euro. In late New York t=
rading, a dollar bought 122.87 yen, up from 122.76 yen late Wednesday, and =
a euro bought 89.25 cents, down from 89.42 cents.=20
* Light, sweet crude oil for December delivery settled at $22.01 a barrel, =
up 32 cents, on the New York Mercantile Exchange.=20
* Gold for current delivery rose to $277.80 a troy ounce, from $275.90 on W=
ednesday, on the New York Mercantile Exchange's Commodity Exchange.
http://www.washingtonpost.com=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Sudhakar will head Enron probe panel
10/26/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)
MUMBAI: Retired supreme court judge Sudhakar Kurdukar will head the judicia=
l panel set up by the Maharashtra government to investigate into the contro=
versial Enron deal.=20
An announcement in this regard was made by chief minister Vilasrao Deshmukh=
at a press conference held at Mantralaya on Wednesday.
The ruling Democratic Front (DF) coalition had differences over the appoint=
ment of the judge, with the Nationalist Congress Party (NCP) demanding that=
a retired judge of the Bombay high court head the judicial panel. The Cong=
ress and the Left Front partners in the DF, however, insisted on a supreme =
court judge.=20
The issue was hotly debated in the coordination committee of the DF. The NC=
P members in the DF finally left the decision to Mr Deshmukh.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron Taps $3 Billion From Bank Lines in Pre-Emptive Move to Ensure Liquidi=
ty
10/25/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Embattled Enron Corp. drew down about $3 billion, the bulk of its available=
bank credit lines, in a bid to restore confidence in its financial strengt=
h and liquidity, Friday's Wall Street Journal reported.=20
Enron (ENE) will use part of the money to offer to redeem around $1.85 bill=
ion in outstanding commercial paper -- short-term corporate IOUs -- accordi=
ng to a person familiar with the matter, with the remainder used to provide=
a cash cushion. This person also said that Enron was talking to its banks =
about a new multibillion-dollar credit line. Some observers thought the mov=
es were a pre-emptive step by Enron to ensure that it had adequate liquidit=
y should its access to bank lines be interrupted.
Enron insists its business operation and financial condition remain strong.=
But "when the market is reacting as irrationally as it has been the last f=
ew days, we thought that cash was better than a commitment from a bank," sa=
id an Enron spokesman. In a prepared statement, the company's new chief fin=
ancial officer, Jeff McMahon, said that by drawing down the bank lines, "we=
are making it clear that Enron has the support of its banks and more than =
adequate liquidity to assure our customers that we can fulfill our commitme=
nts."=20
The move underscored the tumultuous conditions that have been sweeping over=
the Houston energy-trading firm in the past 10 days. Enron is the nation's=
largest energy trader and is a principal in nearly one-quarter of all elec=
tricity and natural-gas trades. Thursday, for example, Enron was involved i=
n about $4 billion worth of deals through its EnronOnline unit.=20
Since early last week, Enron's share price has plummeted 50%. It has report=
ed a $618 million third-quarter loss and a reduction in shareholder equity =
of $1.2 billion. It also disclosed that the Securities and Exchange Commiss=
ion is conducting an inquiry into billions of dollars of transactions it di=
d with entities run by its former chief financial officer, Andrew S. Fastow=
, who was replaced Wednesday.=20
The draw-down of the credit facilities came as a major rating agency, Fitch=
, put Enron on review for a possible downgrade while Standard & Poors chang=
ed Enron's credit outlook to negative from stable. Moody's Investors Servic=
e has already said it is looking at a possible downgrade. In order to fall =
below investment grade, Enron's credit rating would have to fall several no=
tches.=20
If that were to happen, however, a host of bad consequences could follow. T=
ogether with the sharp decline in its stock price, a noninvestment grade ra=
ting would throw the company into default on obligations involving billions=
of dollars of borrowings. In that event, Enron could be forced to issue mi=
llions of shares of stock to holders of that debt, diluting the value of ex=
isting shares. As of 4 p.m. in New York Stock Exchange composite trading, E=
nron shares were down six cents at $16.35.=20
Copyright (c) 2001 Dow Jones & Company, Inc.=20
All Rights Reserved.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron chief executive resigns from board of i2 Technologies
10/25/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
DALLAS (AP) - Kenneth Lay, the chairman and chief executive of embattled En=
ron Corp., has resigned from the board of software company i2 Technologies.=
=20
"This is a very painful decision," Lay said in a statement issued Thursday =
by Dallas-based i2 Technologies. "But now that I am again taking on the CEO=
responsibilities at Enron, I must reduce my outside activities."
Lay resumed the chief executive's job at Enron in August after Jeff Skillin=
g surprised investors by leaving the Houston-based energy company.=20
Enron officials did not immediately return calls from The Associated Press.=
=20
In the past week, Enron has been rocked by questions surrounding partnershi=
ps that did business with Enron while they were managed by the company's ch=
ief financial officer. The official was replaced on Tuesday.=20
Enron's stock price has fallen nearly 50 percent since interest in the part=
nerships intensified, and the company acknowledged that the U.S. Securities=
and Exchange Commission was investigating the arrangements=20
I2 makes software to help companies manage their supply chains, and its cli=
ents include Texas Instruments, Ford Motor Co. and Dell Computer Corp.=20
I2 stock plunged nearly 25 percent on Oct. 17 after the company reported a =
$5.53 billion third-quarter loss and said it would cut 1,000 jobs, about on=
e-fifth of the work force.=20
Lay joined the board in October 2000. No replacement was announced.=20
In trading Thursday, i2 shares rose 24 cents to $4.95, and Enron shares fel=
l 6 cents to $16.35.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
As Enron's woes unnerve investors about energy sector, analysts say its pro=
blems are isolated
By BRAD FOSS
AP Business Writer
10/25/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
NEW YORK (AP) - As it grew over the past decade into the country's largest =
natural gas and power marketing company, Enron Corp. became the de facto ba=
rometer of health within the energy trading sector.=20
Wall Street buoyed the stock prices of Enron's competitors based in part on=
the huge success of the Houston-based company's business model. Now, execu=
tives and industry analysts hope to prevent Enron's internal tumult and fre=
e-falling stock price from undermining investors' confidence in the sector.=
They say the Houston-based company's problems should be viewed in isolatio=
n and not as a broader indicator of the marketplace.
"The marketplace for natural gas and power trading is as vibrant as it was =
yesterday, a week ago or a month ago," said Jim Donnell, president of Duke =
Energy North America, a division of Duke Energy Corp. that generates and tr=
ades power.=20
That opinion appeared to gain acceptance on Thursday as shares of Dynegy In=
c., El Paso Corp. and Duke Energy Corp. rebounded from losses on Wednesday,=
when Enron's latest woes appeared to spill over into the stock prices of i=
ts rivals.=20
Enron's stock has fallen about 50 percent in the past week (and nearly 80 p=
ercent since January) and analysts said its recovery is not expected anytim=
e soon.=20
The latest troubles began Oct. 16 when Enron reported third quarter earning=
s, and a longtime concern among Wall Street analysts that executives were n=
ot entirely forthcoming only got worse.=20
First came reports that some of the company's losses stemmed from partnersh=
ips managed by Enron's chief financial officer at the time, Andrew Fastow. =
That raised concerns about a potential conflict of interest and touched off=
an inquiry by the Securities and Exchange Commission.=20
Then on Wednesday, one day after Enron Chairman Kenneth Lay defended Fastow=
, the company ousted him and said he would take a leave of absence.=20
"They created an environment in which their credibility was put to the test=
and they didn't come through with flying colors," said Christopher Ellingh=
aus, an analyst at Williams Capital Group in New York.=20
Enron shares have been falling all year for reasons new and old, which have=
little to do with the company's wholesale energy business, which accounts =
for roughly 80 percent of profits.=20
Analysts insist wholesale energy marketing can be profitable even in the fa=
ce of an economic downturn and falling natural gas and electricity prices.=
=20
"Even though (Enron) shot themselves in the foot, the basic business is sti=
ll sound and not likely to disappear," Ellinghaus said.=20
UBS Warburg analyst Ronald Barone echoed that sentiment.=20
"The collateral damage to the rest of the space - Dynegy and El Paso - is o=
verdone," Barone said.=20
On Thursday, Williams Companies Inc. of Tulsa, Okla., reported net income o=
f $760 million and Reliant Resources Inc. of Houston reported $133 million =
in profits.=20
"It's business as usual," said Dynegy spokesman Steve Stengel.=20
Not for Enron, whose stock price began a steady descent 10 months ago when =
its nascent high-speed Internet unit failed to live up to the hype. The dow=
nward momentum was further propelled by difficulties collecting money from =
power customers in India and the surprise departure in August of then-chief=
executive Jeff Skilling was considered another bad sign.=20
On Oct. 16, Enron reported a net loss of $638 million in the third quarter,=
taking a one-time charge of $1.01 billion attributed to investment losses,=
troubled assets and unit restructurings. Excluding the charge, Enron earne=
d $393 million on $47.6 billion in revenues for the three months ending Sep=
t. 30.=20
Ellinghaus said the stocks of Enron's competitors were brought down Wednesd=
ay because of "dire" speculation that Enron's troubles might be so bad that=
it could have difficulty paying hundreds of millions of dollars worth of r=
eceivables to companies such as Duke and Dynegy.=20
"All I'm hearing is doomsday type stuff and doomsday is not reality," Ellin=
ghaus said.=20
Enron did not return calls seeking comment Thursday.=20
Donnell of Duke Energy said the Charlotte, N.C.-based company is paying clo=
se attention to the Enron situation and that there has been no indication o=
f receivables not being paid.=20
"They continue to be one of the best functioning companies as it relates to=
credit," he said. "They've never missed a deadline."
AP Graphic ENERGY STOCKS=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron's Credit Outlook Downgraded to Negative by S&P (Update1)
2001-10-25 18:59 (New York)
Enron's Credit Outlook Downgraded to Negative by S&P (Update1)
(Adds analyst comment in fourth paragraph.)
Houston, Oct. 25 (Bloomberg) -- Enron Corp.'s long-term
credit ratings outlook was changed to negative from stable by
Standard & Poor's after the largest energy trader's shares fell
49 percent in the past week.
S&P affirmed the Houston-based company's ratings of
``BBB+/A2,'' which are investment grade.
The ratings company cited lost market capitalization and the
possibility that Enron won't generate enough money from selling
assets outside the main trading business to repay debt. S&P did
say that ``the strategic direction of the company is likely to
become more credit-positive in the wake of recent management
changes.''
Enron reported $1.01 billion in losses from investments
outside the principal business of trading commodities such as
electricity and natural gas. Chief Financial Officer Andrew
Fastow resigned yesterday as the U.S. Securities and Exchange
Commission asks for information about related-party transactions
he conducted.
``The S&P write up was very positive,'' said Dorothea
Matthews, an analyst at CreditSights Inc., a research firm. ``It
seems that the ratings company went out of its way to tray and
calm things down.''
Shares of Enron fell 6 cents to $16.35.
--Russell Hubbard in the Princeton newsroom, 609-750-4651 or
Enron's Trading Partners Say It's Business as Usual (Update2)
2001-10-25 19:38 (New York)
Enron's Trading Partners Say It's Business as Usual (Update2)
(Adds new Enron CFO in 14th paragraph.)
Houston, Oct. 25 (Bloomberg) -- Concerns Enron Corp. will run
short on cash haven't prevented commodities traders from doing
business with the largest energy broker, customers say.
The company handles about 25 percent of U.S. power and
natural-gas trading, said John Kilduff, vice president of energy
risk management for Fimat USA. It's also a leader in complex
derivatives that allow others to hedge against the risk of
fluctuating commodities prices.
Enron's credit rating is on watch for possible downgrade at
Moody's Investors Service, and Standard & Poor's lowered Enron's
long-term credit outlook to negative after $1.01 billion in third-
quarter losses from some soured investments. The company needs
good credit to raise cash every day to keep trading partners from
demanding collateral and to settle transactions.
So far, there are no signs that Houston-based Enron is
handling less business, Kilduff said.
``If they were unable to perform, it would be a major
problem,'' he said. ``It could get like Long-Term Capital if
things really broke down because the numbers are that big.''
Long-Term Capital Management, a private investment fund for
the wealthy, incurred massive losses making bond trades during the
1998 Russian currency crisis. The fund's portfolio plunged. More
than a dozen banks bailed out the fund at a cost of $3.6 billion
to avoid a collapse.
Needs Cash Daily
Enron trades electricity, natural gas, coal and other
commodities worldwide, as well as complex financial instruments to
hedge against price swings in the goods.
``As of now, Enron is active in the markets,'' Kilduff said.
``No one is cutting trading lines that I can see, or demanding
different terms than before.''
Companies that trade as heavily as Enron require cash every
day to settle positions, said Kilduff, whose company swaps natural
gas and other energy investments with Enron.
Some days, Fimat will bet that natural-gas prices will fall,
while Enron bets that they will rise. Natural gas usually does one
or the other every day, and someone pays the difference.
``The liquidity of your trading partners is a risk factor,''
Kilduff said. ``Someone is paying someone else every day.''
Enron said on a conference call Tuesday that it has enough
money to operate normally, and can fall back on $3.4 billion in
bank credit lines if necessary. The company is determined to
protect the credit rating, Enron has said.
``We aren't even going to entertain worst-case scenarios at
this point,'' said Enron spokeswoman Karen Denne.
Investor Questions
Enron, based in Houston, ousted Chief Financial Officer
Andrew Fastow yesterday, two days after the U.S. Securities and
Exchange Commission began asking questions about partnerships he
ran that invested in company shares. Those trades cost Enron $35
million. Jeff McMahon, head of Enron's industrial markets unit,
replaced Fastow, who went on leave of absence.
Enron shares have fallen 49 percent in the past week. They
fell 6 cents to $16.35 today.
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 all rate
the company's debt at investment grade.
The company also faces questions from investors about $3.3
billion in potential liabilities from affiliated companies formed
to buy and sell Enron assets such as power plants.
The affiliates owe payments to bond investors and plan to
meet them by selling assets. Enron doesn't know if the sale
proceeds will cover the debt. The company would have to make good
on any shortfall.
Little Time
Enron asked Citicorp Inc. on Tuesday to arrange a $750
million loan to ensure access to credit if the company gets shut
out of the money markets.
Enron had about $1.85 billion of commercial paper, or short-
term unsecured debt, outstanding as of Tuesday, traders said. The
company, which has a $3 billion program, has had difficulty
finding buyers for new commercial paper sales since the SEC
investigation was announced, the traders said.
Today, Enron offered two-week commercial paper at a 3 percent
yield, 10 to 15 basis points above comparably rated companies.
``There appears to be enough liquidity to give them enough
time to get their house in order,'' said Jon Kyle Cartwright,
senior energy credit analyst at Raymond James & Associates.
``There's a point where a credibility crisis becomes a self-
fulfilling prophecy, so they have less time than they think to
pacify the market.''
Ripple Effect
Some investors are concerned that Enron's complex book of
hedges, swaps, options and other derivative contracts involves so
many partners, participants and companies that a failure would
pose a risk to the economy, and force a bailout like Long-Term
Capital Management's.
``The talk in the financial markets is that some counter
party to Enron could fail if Enron can't perform,'' said Jeff
Caughron, manager of $400 million in investments for Tinker
Federal Credit Union in Oklahoma City. ``If it goes down, there
could be a big ripple effect.''
The effect has already spread as investors worry Enron won't
be able to pay bills owed to power producers such as Calpine
Corp., Dynegy Inc., Mirant Corp. and NRG Inc., said Chris
Ellinghaus, an analyst at Williams Capital Group. As a group,
shares of the four have fallen 11 percent in the past week.
``Rumors that these companies have receivables with Enron are
fueling a sell-off,'' he said. ``Both traders and companies
selling power to Enron are suffering.''
All four companies said they're trading with Enron as they
have in the past.
Market Maker
Enron supplies services some customers consider
irreplaceable. The Sacramento Municipal Utilities District hedges
weather risk through Enron, said risk manager Jim Tracy.
The district entered into an agreement that forces it to pay
Enron if rainfall is abundant and hydroelectric dams can operate
at peak efficiency and capacity; in dry seasons, when the dams
can't operate as well, Enron pays the district.
``If Enron's credit went bad, or they folded up, that
agreement wouldn't get picked up by someone else,'' Tracy said.
Enron also helps many U.S. utilities protect themselves from
electricity and natural gas price fluctuations in the same way it
helps the Sacramento utility district hedge against too little
rainfall. Any impairment on Enron's part to continue doing so
would trickle down to Main Street utilities, Tracy said.
``Utilities would start reserving more on their balance
sheets for price swings,'' Tracy said.
--Russell Hubbard in the Princeton newsroom at 609-750-4651, or at
Enron Broadband Begins Closing London, Singapore Offices
By Erwin Seba
Of DOW JONES NEWSWIRES
10/25/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -(Dow Jones)- Enron Corp.'s (ENE) telecommunications unit will clos=
e down its trading offices in London and Singapore over the next six months=
.=20
Enron Broadband Services executives have quietly begun to inform employees =
overseas and haven't made a public announcement of plans to consolidate Asi=
an and European bandwidth trading operations at the company's Houston headq=
uarters.
"It's a way to structure the business to fit the opportunities that are out=
there in the market now," Enron Broadband Services spokeswoman Terrie Jame=
s said in response to questions from Dow Jones Newswires.=20
The London office has 20 or fewer employees, James told Dow Jones. The Sing=
apore office has 15 or fewer employees.=20
Americans working in the offices would probably choose to relocate in the U=
.S., James said. She didn't know how many of the employees are U.S. citizen=
s. She didn't know what options might be offered to the non-American employ=
ees.=20
James didn't know how much money Enron might save by closing the offices.=
=20
The decision by Enron, the leading bandwidth market-maker, shows that inter=
national bandwidth markets are having tough times like the U.S. market.=20
Earlier this year, as the U.S. market went sour, Enron executives had said =
that European and Asian telecommunications carriers might be more open to b=
andwidth trading, making the markets in those regions ripe for growth.=20
-By Erwin Seba, Dow Jones Newswires; 713-547-9214; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Calpine:No Exposure To Enron; No Calif Pwr Contract Talks
10/25/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Calpine Corp. (CPN) has no credit exposure to tradin=
g partner Enron Corp. (ENE), Calpine said Thursday in an earnings conferenc=
e call. And the company hasn't been contacted by the state of California ab=
out renegotiating the billions of dollars in long-term supply contracts the=
company signed with the state earlier this year.=20
Calpine's diluted net earnings for the third quarter were 88 cents a share =
compared with 48 cents for the same quarter last year. Setting Calpine's co=
nsistent earnings growth aside, Wall Street analysts in Thursday's conferen=
ce call focused their questions on trouble spots in the energy industry, li=
ke Enron, California, and whether the U.S. will have a surplus of electric =
power stations in a few years.
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. Trading partners like Calpine have been asked about their exposure t=
o Enron.=20
"We continue to assess the situation, but right now don't have any net expo=
sure to Enron," said Calpine's vice president of corporate risk management,=
Paul Pasoli. "We continue to trade with them. We will adjust our credit th=
reshold based on how their bonds are trading and their credit rating."=20
When asked if there would be any exposure to Enron if trading were to be ha=
lted immediately, Pasoli said that, in fact, Calpine would owe Enron a litt=
le money.=20
In another energy industry area of concern, Calpine was asked about the sta=
te of California's stated desire to renegotiate tens of billions of dollars=
of long-term power contracts. Calpine is by far the biggest supplier under=
those contracts, which on a mark-to-market basis are worth far less now th=
an when California bought this past winter and spring.=20
"Nobody has come to us directly or indirectly with regard to the Calif cont=
racts. In general, we respect our contracts and expect our counterparties t=
o do so as well," said Calpine cheif executive, Peter Cartwright. "If there=
are any contract renegotiations that can result in a win-win, we would be =
happy to look at that, if California asks. We've done that many times."=20
As for future power prices, Calpine said that it's going forward with its p=
rogram to build a portfolio of 70,000 megawatts of generation, which is abo=
ut three times its current capacity and would be about 7% of all U.S. capac=
ity. The critical determinant of profitability in power generation is the d=
ifference between natural gas prices and power prices, and Calpine said tha=
t difference, or "spark spread," has grown the past few months. Furthermore=
, the company executives said they are holding to a requirement that all pr=
ojects generate an after-tax return of 18% on the investment.=20
As a result, the company expects earnings to grow at least 40% annually thr=
ough 2005. Calpine will fund near-term cash needs in the debt markets and w=
on't issue new stock until its stock price rises substantially.=20
-By Mark Golden, Dow Jones Newswires; 201-938-4604; [email protected]=
m
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Spector, Roseman & Kodroff, P.C. Files Class Action Suit Against Enron Corp=
oration
10/25/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)
PHILADELPHIA, Oct. 25 /PRNewswire/ -- The law firm of Spector, Roseman & Ko=
droff, P.C. announces that a class action lawsuit has been commenced in the=
United States District Court for the Southern District of Texas, Houston D=
ivision, against defendants Enron Corporation ("Enron" or the "Company") (N=
YSE: ENE), Kenneth L. Lay, Jeffrey K. Skilling, and Andrew Fastow, on behal=
f of purchasers of the common stock of Enron during the period between Janu=
ary 18, 2000 and October 17, 2001, inclusive (the "Class Period").=20
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.
If you purchased Enron securities during the Class Period, you may, no late=
r than December 21, 2001, move to be appointed as a Lead Plaintiff in this =
class action. A Lead Plaintiff is a representative, chosen by the Court, th=
at acts on behalf of other class members in directing the litigation. The P=
rivate Securities Litigation Reform Act of 1995 directs Courts to assume th=
at 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 discre=
tion in determining which class member(s) have the "largest financial inter=
est," and have appointed Lead Plaintiffs with substantial losses in both ab=
solute terms and as a percentage of their net worth. If you have sustained =
substantial losses in Enron securities during the Class Period, please cont=
act Spector, Roseman & Kodroff, P.C. at [email protected] for a more =
thorough explanation of the Lead Plaintiff selection process. If you have r=
elatively small losses, your ability to participate in any recovery will be=
protected by the Lead Plaintiff(s), and you need take no affirmative steps=
at this time.=20
If you wish to discuss this action or have any questions concerning this no=
tice or your rights or interests, please contact plaintiff's counsel Robert=
M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.=
com. For more detailed information about the firm please visit its website =
at http://www.spectorandroseman.com.=20
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and=
San Diego, California, concentrates its practice in complex litigation inc=
luding actions dealing with securities laws, antitrust, contract and commer=
cial claims. The firm is active in major litigation pending in federal and =
state courts throughout the United States. The firm's reputation for excell=
ence has been recognized on repeated occasions by courts which have appoint=
ed the firm as lead counsel in numerous major class actions involving viola=
tions of the federal securities laws and the federal antitrust laws, and co=
nsumer fraud. As a result of the efforts of the firm, and its members, hund=
reds of millions of dollars have been recovered on behalf of thousands of d=
efrauded shareholders and companies.=20
MAKE YOUR OPINION COUNT - Click Here=20
http://tbutton.prnewswire.com/prn/11690X17742762
/CONTACT: Robert Roseman of Spector, Roseman & Kodroff, P.C., +1-888-844-58=
62/ 19:00 EDT=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
TGS Q3 net profit up 22 pct yr-on-yr on higher NGL sales, transport revenue=
s
10/25/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
BUENOS AIRES (AFX) - Perez Companc SA and Enron Corp pipeline joint venture=
, Transportadora de Gas del Sur SA, said its net profit in the three months=
to September rose 22 pct year-on-year to 37 mln pesos on the back of stron=
g growth in sales of natural gas liquids (NGL) and increased revenue from t=
ransport.=20
Total revenue grew 24 pct year-on-year to 147 mln pesos, as "TGS continues =
to grow its revenues in all of its business segments," CEO Eduardo Ojea Qui=
ntana said.
NGL sales surged 86 pct year-on-year to 31.1 mln pesos, after a partial tak=
eover of the Cerri complex's production at Bahia Blanca, although volumes d=
eclined as a result of the start-up of the Mega project at the beginning of=
2001, Ojea Quintana said.=20
Gas transport revenue rose 11 pct year-on-year to 109.6 mln pesos as averag=
e gas transportation contracted capacity rose 6 pct to 62.5 mln cubic metre=
s daily, following a capacity expansion completed in June.=20
However, he also noted "important challenges, mostly associated with the re=
levant regulatory issues that remain unresolved, as well as the deep econom=
ic crisis that Argentina is currently undergoing."=20
"These negative factors have adversely affected our investment plans for th=
e current year and for 2002," Ojea Quintana added.=20
lac/zr For more information and to contact AFX: www.afxnews.com and www.afx=
press.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron Draws Down Credit Facility
10/25/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -(Dow Jones)- Enron Corp. (ENE) drew on committed lines of credit t=
o provide cash liquidity of more than $1 billion.=20
In a press release Thursday, the energy company said it has "more than adeq=
uate" liquidity to fulfill business commitments.
Enron said the credit action is a step to restore investor confidence, and =
it plans to update investors in several days regarding plans to maintain it=
s long-term credit rating.=20
Earlier Thursday, Standard & Poor's revised its long-term ratings outlook f=
or Enron to negative due to concerns that the company's significant drop in=
market capitalization has hurt the company's flexibility and could impair =
plans to rebuild the balance sheet.=20
Over the past week, Enron's shares have fallen more than 40% amid negative =
news from the company.=20
The company's New York Stock Exchange-listed shares closed Thursday at $16.=
35, down 6 cents, or 0.4%, on composite volume of 39,212,300 shares. Averag=
e daily volume is 7,832,606 shares.=20
Early last week, the company reported a $618 million third quarter loss, re=
sulting from $1.01 billion in write-offs. Enron also disclosed a $1.2 billi=
on reduction in shareholder equity for the quarter as a result of terminati=
ng certain transactions related to a partnership that for a time was headed=
by Chief Financial Officer Andrew Fastow.=20
On Wednesday, Enron replaced Fastow with Jeff McMahon, effective immediatel=
y.=20
The Wall Street Journal reported Thursday that some bond traders believe En=
ron's bonds won't continue to hold up better the company's stock.=20
The company's five-year bond has decreased about 16% in the past two weeks,=
much less than the 50% decline in Enron's stock price since the Oct. 16 di=
sclosure of the $1.01 billion charges.=20
But the fall in the bond's price translates to a yield of 7.7 percentage po=
ints above bellwether U.S. government bonds, which is widening from about 3=
percentage points two weeks ago. Although Enron is still an investment-gra=
de credit, that kind of "spread" is more characteristic of a junk bond with=
a credit rating of single B or lower, the Journal said.=20
On Wednesday, Fitch put Enron's credit rating on watch for a possible downg=
rade, following a similar move by Moody's Investor Service earlier this wee=
k.=20
Several energy trading companies said Thursday that although they have conc=
erns about Enron's credit quality, they have made almost no changes in poli=
cy concerning the company.=20
Dynegy Inc. (DYN), Williams Cos. (WMB) and Aquila Inc. (ILA) said they have=
n't changed their credit policy concerning Enron, which accounts for about =
a quarter of the trade in U.S. power and gas markets.=20
The Journal reported that bond traders expect Enron executives to meet with=
rating agencies, debt-trading desks, big bond holders and banks next week.=
=20
Company Web site: http://www.enron.com=20
-Susan Willetts; Dow Jones Newswires; 201-938-5388
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron Employees Watch Options Devalue as Shares Fall (Correct)
2001-10-25 18:41 (New York)
Enron Employees Watch Options Devalue as Shares Fall (Correct)
(Company corrects structure of standard compensation package
in second paragraph.)
Houston, Oct. 25 (Bloomberg) -- Enron Corp. prided itself on
sharing the wealth with employees when the company was posting
record profits last year. Now, from the boardroom to the mailroom,
employees are sharing the pain.
Enron, the largest energy trader, grants stock options to the
bulk of its 20,000 employees. Under Enron's standard compensation
package, most employees get stock options equal to
5 percent of their annual base salary, spokeswoman Meredith
Philipp said.
Employees held 46.8 million exercisable options as of the end
of 2000, all at average prices above the company's current share
price. The stock has dropped 80 percent this year.
``Virtually every option is under water right now,'' Enron
spokeswoman Karen Denne said.
Enron's board sets the strike price for the options in
December or January. Employees can't cash the options in and make
a profit unless the stock is trading above the strike price. At
the end of 2000, Enron shares were trading at $83.13. In December,
the board set a strike price of about $80.
Shares of Houston-based Enron fell 6 cents to $16.35 today.
They have lost 37 percent of their value so far this week.
Enron said Monday that the Securities and Exchange Commission
was asking questions about partnerships run by Andrew Fastow, who
was ousted as Enron's chief financial officer yesterday. One
partnership cost the company $35 million, and Enron bought back 62
million shares from a partnership at a cost of $1.2 billion.
Enron named Jeff McMahon, head of its industrial markets
group, as CFO late yesterday.
Unvested Options
Another 96.1 million options granted to Enron employees
hadn't vested as of the end of last year. About 15.4 million of
them, or 16 percent, were at prices ranging from $6.88 to $20 a
share. The rest vest at levels well above the current share price.
Experts who have watched the devaluation of stock options in
other industries, such as technology and telecommunications, say
it becomes demoralizing for workers to watch share prices fall
below their options.
``It looks bad,'' said Mark Edwards, chairman of IQuantic
Buck, a Mellon Financial Corp. unit that provides compensation
consulting. ``Employees look at (the stock price) every day, and
it's a continued disincentive to them.''
While Denne said Enron doesn't have any plans to reprice its
employees' options, the company did issue a one-time stock option
grant at $36.88 in August, when Ken Lay resumed his former role as
the company's chief executive. Lay, who had held the job for 15
years, turned the position over to Jeffrey Skilling in February.
Skilling quit in August, citing family reasons.
The August grant, which was equivalent to 5 percent of
employees' base salary, didn't require a vesting period, but was
exercisable immediately. Enron's shares haven't closed above
$36.88 since Aug. 29.
--Margot Habiby in the Dallas newsroom (214) 954-9452, or
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|
LNG Update ,
John, Would you have 45 minutes later this week for Eric and myself? We'd like to give you a quick update on whats happening in the Atlantic basin in LNG, and also get an update from you on where the US Natgas market is heading.
Thanks,
Jonathan
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|
FW: Please Register to Attend the Enron Management Conference ,
-----Original Message-----
From: Williamson, Joannie On Behalf Of Lay, Kenneth
Sent: Monday, October 22, 2001 3:25 PM
To: Williamson, Joannie
Subject: FW: Please Register to Attend the Enron Management Conference
-----Original Message-----
From: Enron Announcements/Corp/Enron@ENRON On Behalf Of Ken Lay- Chairman of the Board@ENRON
Sent: Monday, October 08, 2001 10:39 PM
To: VP's and Above- Enron Management Conference List@ENRON
Subject: Please Register to Attend the Enron Management Conference
As you know, the Enron Management Conference will be held Wednesday through Friday, November 14-16, 2001, at the Westin La Cantera Resort in San Antonio, Texas.
This has been an eventful and challenging year for Enron. Now, more than ever, it is fitting to bring Enron's leaders together. After all, it is up to our management team to lead our company through these challenging times. Together, we will define Enron's character and determine Enron's destiny.
We have a great program planned for this year's conference. I'm delighted that General Norman Schwarzkopf will join us as a keynote speaker on leadership. I'm equally pleased to welcome back Gary Hamel, who will help us process the past year and prepare for future success. As I've said before, we are a company that continues to look to the future, and there are many exciting things in store for us.
I look forward to seeing you at this very important meeting.
Regards,
Ken Lay
NOTE: This year, registration for the Management Conference will be conducted electronically. Below is a link to the online registration website along with instructions for navigating the site. Everyone must register by Friday, November 2.
http://www.mplanners.com/enron
When you access the Management Conference online registration website, enter your eMail Address and Password (password: enron) in the specified boxes. The first time you access the site, you will be prompted to enter your First Name and Last Name. Once completed, click Submit.
On the next page, click Sign Up Now to register. You will be prompted to enter your basic information and make selections for your hotel room, travel and preferred activity. In the scroll box to the right, you can review and print the conference agenda, a list of activities, as well as travel arrangements and other general information.
After you have entered the necessary information, you can Review Your Registration or simply Log Out. Your registration information will be automatically submitted.
Once registered, you can reaccess the site at any time to review or change previous elections. When reentering the site, you only need to enter your eMail Address and Password.
If you experience any problems accessing the site, please contact Marge Nadasky at 713-853-6631.
| 6,186 |
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arnold-j/inbox/42.
|
Email Problems ,
My email system has recently developed a glitch. It has come to my
attention that some emails have been sent to me, but I never received them.
When this happens, the system does not return a 'mail not delivered' message
to the sender. If you have sent an email to me in the last couple weeks
expecting a response, but did not hear back from me or my office, please
call us. I apologize for any misunderstanding or inconvenience. Of course,
issues requiring a timely response are always best handled over the phone,
and until my email system is fixed it is best to either call me or email
Rafael ([email protected]). Thank you for your
understanding.
> Michael Gapinski
> Account Vice President
> UBS PaineWebber, Inc.
> Corporate Employee Financial Services
> 713-654-0365
> 800-553-3119 x365
> Fax: 713-427-7539
> Cell: 281-435-0295
[email protected]
******************************************************
Notice Regarding Entry of Orders and Instructions:
Please do not transmit orders and/or instructions
regarding your UBSPaineWebber account(s) by e-mail.
Orders and/or instructions transmitted by e-mail will
not be accepted by UBSPaineWebber and UBSPaineWebber
will not be responsible for carrying out such orders
and/or instructions.
Notice Regarding Privacy and Confidentiality:
UBSPaineWebber reserves the right to monitor and
review the content of all e-mail communications sent
and/or received by its employees.
| 6,188 |
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arnold-j/inbox/45.
|
Mtg. regarding Index Postings ,
When: Tuesday, October 30, 2001 3:30 PM-4:00 PM (GMT-06:00) Central Time (US & Canada).
Where: EB3308
*~*~*~*~*~*~*~*~*~*
Attendees: Hunter Shively
John Lavorato
John Arnold
Scott Neal
Tom Martin
Mike Grigsby
| 6,191 |
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arnold-j/inbox/46.
|
,
You buy 20,000 mmbtu/d Nov1-Mar2 @ $3.21from Connective
You sell 20,000 mmbtu/d Nov1-Mar2 @ $3.21to JARON
You buy 25,000 mmbtu/d Cal 2 @ $3.305from Connective
You sell 25,000 mmbtu/d Cal 2 @ $3.305to JARON
| 6,192 |
||
arnold-j/inbox/49.
|
RE: ,
My wife is in New York and will not return until 4:40 on Sunday. I am keeping my boys and will work on getting a babysitter in the morning. I will call you tomorrow.
Grigsby
-----Original Message-----
From: Arnold, John
Sent: Sat 10/27/2001 1:21 PM
To: Shively, Hunter S.; Neal, Scott; Grigsby, Mike; Martin, Thomas A.
Cc:
Subject:
There will be a desk head mtg tomorrow, Sunday, at 3:00 on the 33rd floor per Lavorato to discuss positions and strategy. Please confirm via email. My cell # is 713 557 3330 if there are any problems.
| 6,195 |
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arnold-j/inbox/5.
|
LNG ,
John:
The Enron deal at Elba Island amounts to a sendoout capacity of 160mmcf/d for 17 years. This will be tough to fill as the majority of existing supply exceeds the max heat rate-I would look for Enron to get out of this in some way. Enron is currently having discussions with El Paso as to whether this contract goes into effect Oct 1st 2001 or Jan 1st 2002. Elba Island has recently said that they will be running in Q4 although many still doubt it.
Attached is a file that lists the terminals, their capacity owners, facility owners, expansion plans, and supply situation. Let me know if you have any more questions.
| 6,196 |
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arnold-j/inbox/50.
|
,
current -260
all 150
jack +7
minn +3
cinci+3
sf+2.5
new orleans +12
car +2.5
dall +3
oak +1.5
new eng +7
buff +7
seattle +2.5
wash +8
| 6,197 |
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arnold-j/inbox/52.
|
,
8-4 540-260=280 current
| 6,199 |
||
arnold-j/inbox/53.
|
RE: Rasheed ,
Goldstein.
-----Original Message-----
From: Arnold, John
Sent: Saturday, October 27, 2001 11:55 AM
To: Hochschild, Lenny
Subject: RE: Rasheed
that kid is hilarious. Do you know what his last name is?
-----Original Message-----
From: Hochschild, Lenny
Sent: Friday, October 26, 2001 10:59 AM
To: Arnold, John
Subject: Rasheed
I'm gonna GETCHA
| 6,200 |
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arnold-j/inbox/54.
|
Enron Mentions ,
Enron Discusses Credit Line of $1 Billion to $2 Billion With Banks
The Wall Street Journal, 10/29/01
Manager's Journal: How Enron Ran Out of Gas
The Wall Street Journal, 10/29/01
Enron Seeks Additional Financing
The New York Times, 10/29/01
GLOBAL INVESTING: Enron stock plunge deals a heavy blow to mutual funds=20
Financial Times; Oct 29, 2001
COMMENT & ANALYSIS - Enron flickers.
Financial Times, 10/29/01
FRONT PAGE - COMPANIES & MARKETS - Enron asks banks for additional credit.
Financial Times, 10/29/01
Enron Seeks Further Credit to Reassure Investors, WSJ Says
Bloomberg, 10/29/01
USA: REPEAT-Electric cowboys get roped in at the energy corral.
Reuters English News Service, 10/29/01
Enron seeks new credit line; reportedly for 1-2 bln usd
AFX (AP), 10/29/01
Enron Said Seeking New Credit Lines
American Banker, 10/29/01
USA: Enron in talks for $1-2 bln credit line - WSJ.
Reuters English News Service, 10/29/01
JAPAN: Japan's Teijin, Enron study coal-fired power plant.
Reuters English News Service, 10/29/01
Enron, Teijin to Build Power Plant in Japan, Report Says
Bloomberg, 10/29/01
Once-Mighty Enron Strains Under Scrutiny
The New York Times, 10/28/01
Plumbing Mystery Of Deals By Enron
The New York Times, 10/28/01
Investors Seem to Ignore Discouraging News
The New York Times, 10/28/01
Enron Asks Banks for More Credit After Stock Slide, FT Reports
Bloomberg, 10/28/2001
Enron Asks Banks For Additional Credit -FT
Dow Jones Energy Service, 10/28/01
Week in Review TOP STORIES OCT. 22-26 Lockheed Edges Out Boeing for Contrac=
t
Los Angeles Times, 10/28/01
Devon Energy makes building its own with major lease
Houston Chronicle, 10/28/01
INDIA PRESS: Enron Plans To Exit LNG Shipping JV
Dow Jones International News, 10/28/01
Enron Taps All Its Credit Lines To Buy Back $3.3 Billion of Debt
The New York Times, 10/27/01
COMPANIES & FINANCE INTERNATIONAL - Enron's bond prices drop to warning lev=
els.
Financial Times, 10/27/01
SHORTS - Enron bond prices under pressure.
Financial Times, 10/27/01
Enron taps credit line; stock slides
Associated Press Newswires, 10/27/01
Enron Decline Continues
Los Angeles Times, 10/27/01
Enron taps credit line; stock slides / Company says cash will boost confide=
nce
Houston Chronicle, 10/27/01
Enron says Microsoft breached contract
Houston Chronicle, 10/27/01
How to Lose a War
The New York Times, 10/27/01
City - Enron directors cash in shares.
The Daily Telegraph, 10/27/01
INDIA: Lenders to meet over Enron's Dabhol on Nov 3.
Reuters English News Service, 10/27/01
Enron sues Microsoft for breach of contract ; Move could block high-speed s=
ervice
The Seattle Times, 10/27/01
Enron Discusses Credit Line of $1 Billion to $2 Billion With Banks
By Jathon Sapsford and John Emshwiller
Staff Reporters of The Wall Street Journal
10/29/2001
The Wall Street Journal
A10
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Enron Corp., scrambling to restore confidence in its finances, is negotiati=
ng with banks for a new credit line of between $1 billion and $2 billion, a=
nd is likely to close a deal within days, according to officials familiar w=
ith the matter.=20
The new credit line is intended to bolster Enron's financial condition and =
head off a potentially devastating loss of investor and business confidence=
. The new credit would supplement existing lines, which are largely tapped =
out after Enron last week drew down about $3 billion to increase cash reser=
ves and calm fears in the stock, bond and energy markets.
An Enron spokesman confirmed that the company is negotiating a new credit l=
ine, but said he couldn't supply any further details.=20
Houston-based Enron is the nation's biggest energy trader and a principal i=
n nearly one-quarter of all electricity and natural-gas trades. Once a favo=
rite of Wall Street, the company now is in the unfamiliar position of convi=
ncing a deeply concerned investment community that, despite difficulties, i=
ts finances remain sound.=20
Confidence in Enron's financial situation was shaken after Enron earlier th=
is month announced a $618 million third-quarter loss and disclosed a $1.2 b=
illion erosion of shareholder equity related to controversial transactions =
it had done with entities connected to its then-chief financial officer, An=
drew Fastow.=20
Last week, Enron replaced Mr. Fastow and said that the Securities and Excha=
nge Commission was looking into the transactions. The company has consisten=
tly said that the transactions were proper and legal.=20
Enron's stock price fell again Friday. As of 4 p.m., in composite trading o=
n the New York Stock Exchange, Enron shares were down 95 cents at $15.40. E=
nron shares have fallen 50% in the past two weeks and are down 83% from a S=
ept. 18, 2000, high of $89.63.=20
Late last week, Enron tapped its existing credit lines, with part of that m=
oney being used to redeem nearly $2 billion of its outstanding commercial p=
aper, or short-term corporate IOUs. Ron Barone of credit-rating agency Stan=
dard & Poor's said he believes that Enron was "getting a bit more resistanc=
e" recently in rolling over its commercial paper as it came due. Thus, Enro=
n probably decided it would be easier simply to redeem the paper outstandin=
g, he said.=20
The Enron spokesman yesterday said that paying off the commercial paper and=
still leaving the company with an additional roughly $1 billion cash on ha=
nd would give it more financial flexibility.=20
Also last week, credit-rating agencies warned investors they were reviewing=
Enron's debt and commercial-paper ratings for a possible downgrade. A lowe=
r rating could hamper Enron's core trading businesses.=20
Behind the worries among these agencies, in part, is the loss of investor c=
onfidence, which one of the rating companies, Fitch, said in a report last =
week could impair "Enron's financial flexibility and access to capital mark=
ets, therefore impacting its ability to conduct its business."=20
The Enron spokesman said yesterday that the company's trading partners are =
doing business with Enron on "essentially the same terms" as they have in t=
he past. "There has been no significant change in the credit conditions," h=
e said. Trading partners demanding significantly stricter terms from Enron =
would be a sign of further deteriorating confidence in the energy giant's f=
inances.=20
The banks involved in the current negotiations, including J.P. Morgan Chase=
& Co. and Citigroup Inc., are asking Enron for stricter covenants on the n=
ew credit line than they had asked for in the past, one official said.=20
Bankers involved with the company say the goal of the new credit line is to=
show the investment community that Enron can meet its commitments. "Confid=
ence in this company was lost," said one bank official involved in the nego=
tiations for a new credit line. "But confidence will be restored."=20
Corporations of Enron's size commonly establish credit lines only to demons=
trate to the investment community that in case of an emergency, they have a=
ccess to cash. In practice, few companies actually make use of these lines.=
Thus, drawing down credit lines, while providing immediate cash, also illu=
strates the pressure Enron is feeling.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Manager's Journal: How Enron Ran Out of Gas
By Paul Kedrosky
10/29/2001
The Wall Street Journal
A22
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Is troubled Enron Corp. the Long Term Capital Management of the energy mark=
ets, or merely yet another mismanaged company whose executives read too man=
y of their own press releases? Or is poor Enron just misunderstood? Those a=
re the questions after another week of Chinese water torture financial rele=
ases from the beleaguered Houston-based energy concern.=20
A year ago Enron was the hottest of the hot. While tech stocks were tanking=
, Enron's shares gained 89% during 2000. Even die-hard Enron skeptics -- of=
which there are many -- had to concede that last year was a barnburner for=
the company. Earnings were up 25%, and revenues more than doubled.
Not bad, considering where the company came from. A decade ago 80% of Enron=
's revenues came from the staid (and regulated) gas-pipeline business. No l=
onger. Enron has been selling those assets steadily, partly fuelling revenu=
es, but also expanding into new areas. By 2000, around 95% of its revenues =
and more than 80% of its profits came from trading energy, and buying and s=
elling stakes in energy producers.=20
The stock market applauded the move: At its peak, Enron was trading at arou=
nd 55 times earnings. That's more like Cisco's once tropospheric valuation =
than the meager 2.5 times earnings the market affords Enron competitor Duke=
Energy.=20
But Enron management wanted more. It was, after all, a "new economy" Web-ba=
sed energy trader where aggressive performers were lucratively rewarded. Ac=
cording to Enron Chairman and CEO Ken Lay, the company deserved to be value=
d accordingly. At a conference early this year he told investors the compan=
y's stock should be trading much higher -- say $126, more than double its p=
rice then.=20
Then the new economy motor stalled. The company's president left under stra=
nge circumstances. And rumors swirled about Enron's machinations in Califor=
nia's energy markets. Investors pored over Enron's weakening financial stat=
ements. But Enron analysts must have the energy and persistence of Talmudic=
scholars to penetrate the company's cryptic financials. In effect, Enron's=
troubles were hiding in plain sight.=20
It should have been a warning. Because of the poor financial disclosure the=
re was no way to assess the damage the economy was doing to the company, or=
how it was trying to make its numbers. Most analysts blithely concede that=
they really didn't know how Enron made money -- in good markets or bad.=20
Not that Enron didn't make money, it did -- albeit with a worrisomely low r=
eturn on equity given the capital required -- but sometimes revenues came f=
rom asset sales and complex off-balance sheet transactions, sometimes from =
energy-trading revenues. And it was very difficult to understand why or how=
-- or how likely it was Enron could do it again next quarter.=20
Enron's financial inscrutability hid stranger stuff. Deep inside the compan=
y filings was mention of LJM Cayman, L.P., a private investment partnership=
. According to Enron's March 2000 10-K, a "senior officer of Enron is the m=
anaging member" of LJM. Well, that was a puzzler. LJM was helping Enron "ma=
nage price and value risk with regard to certain merchant and similar asset=
s by entering into derivatives, including swaps, puts, and collars." It was=
, in a phrase, Enron's house hedge fund.=20
There is nothing wrong with hedging positions in the volatile energy market=
-- it is crucial for a market-maker. But having an Enron executive managin=
g and benefiting from the hedging is something else altogether, especially =
when the Enron executive was the company's CFO, Andrew Fastow. While he sev=
ered his connection with LJM (and related partnerships) in July of this yea=
r -- and left Enron in a whirl of confusion last week -- the damage had bee=
n done.=20
As stories in this paper have since made clear, Mr. Fastow's LJM partnershi=
p allegedly made millions from the conflict-ridden, board-approved LJM-Enro=
n relationship. And recently Enron ended the merry affair, taking a billion=
-dollar writedown against equity two weeks ago over some of LJM's wrong-foo=
ted hedging. Analysts, investors, and the Securities & Exchange Commission =
were left with many questions, and very few answers.=20
To be fair, I suppose, Enron did disclose the LJM arrangement more than a y=
ear ago, saying it had erected a Chinese wall between Fastow/LJM and the co=
mpany. And in a bull market, no one paid much attention to what a bad idea =
that horribly conflicted relationship was -- or questioned the strength of =
the wall. Now it matters, as do other Enron-hedged financings, a number of =
which look to have insufficient assets to cover debt repayments due in 2003=
.=20
We didn't do anything wrong is Mr. Lay's refrain in the company's current r=
ound of entertainingly antagonistic conference calls. That remains to be se=
en, but at the very least the company has shown terrible judgment, and hero=
ic arrogance in its dismissal of shareholders interests and financial trans=
parency.=20
Where has Enron's board of directors been through all of this? What kind of=
oversight has this motley collection of academics, government sorts, and r=
etired executives exercised for Enron shareholders? Very little, it seems. =
It is time Enron's board did a proper investigation, and then cleaned house=
-- perhaps neatly finishing with themselves.=20
---=20
Mr. Kedrosky is a professor of business at the University of British Colomb=
ia.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
National Desk; Section A
Enron Seeks Additional Financing
By RICHARD A. OPPEL Jr.
10/29/2001
The New York Times
Page 9, Column 4
c. 2001 New York Times Company
DALLAS, Oct. 28 -- The Enron Corporation, still struggling to reassure inve=
stors it can weather a financial crisis over complicated transactions invol=
ving its former chief financial officer, is seeking $1 billion to $2 billio=
n in additional financing from banks, an industry official said today.=20
Last week, Enron, the nation's largest energy-trading concern, used about $=
3 billion in available credit lines and spent about $2 billion to pay off c=
ommercial paper. Now, by obtaining even more financing, Enron is hoping to =
convince investors and other energy-trading firms that it will not face a c=
ash squeeze that could lead trading partners to refuse to extend credit or =
do business with it.
Enron's board, which has been holding meetings by telephone over the last t=
wo weeks to monitor the company's financial situation, held another meeting=
this afternoon. ''The board is meeting frequently and will announce any ac=
tions when appropriate,'' an Enron spokesman said.=20
Two weeks ago, Enron disclosed that its shareholder equity had been reduced=
by $1.2 billion because of deals with investment partnerships involving it=
s former chief financial officer, Andrew S. Fastow, who was ousted last wee=
k. The company also disclosed about $1 billion in separate write-offs, and =
it said last week that the Securities and Exchange Commission had made an i=
nquiry into its financial accounting.=20
Enron hopes to maintain its investment-grade credit rating, which is crucia=
l to ensuring that other energy traders continue to do business with it. La=
tely, Enron's bonds have been trading at prices more like junk bonds, and t=
wo major credit-rating agencies are considering whether to downgrade the co=
mpany's rating.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
GLOBAL INVESTING: Enron stock plunge deals a heavy blow to mutual funds=20
Financial Times; Oct 29, 2001
By AGENCIES: AGENCY MATERIAL and ELIZABETH WINE
Enron shares plunged 40 per cent in the last week,doing severe damage to mu=
tual funds, the company's largest institutional ownership bloc, and the hav=
oc may continue.=20
More than 15 per cent of the 4,000 US equity funds held shares in the embat=
tled company's shares as of the most recent reporting period, according to =
fund tracker Morningstar.=20
Mutual funds held a fifth of Enron's shares, but that percentage is likely =
to be much lower now, say fund analysts, who suggest much of the stock's ha=
lving in October is due to large sales by institutional holders.=20
Janus, the growth fund specialist, was the largest institutional shareholde=
r according to the most recent filings, dated June 30, with more than 42m s=
hares representing a stake worth Dollars 2.1bn.=20
The stake - if still held in its entirety - would be worth Dollars 659m at =
Friday's closing price of Dollars 15.40. Enron shares dropped 95 cents, or =
5.81 per cent on Friday, taking its total fall to nearly 41 per cent last w=
eek on concerns over accounting questions and some limited partnerships cre=
ated by Andrew Fastow, former chief financial officer. On Friday, several l=
eading rating agencies put the company's debt on credit watches, and Enron =
bond prices plunged. The company's stock is down 81 per cent since January.=
=20
Most fund managers, including those at Janus, refuse to discuss a company i=
n which they are actively trading. However, several mutual fund groups with=
large Enron stakes have said their listed positions are "dated", implying =
that the funds' positions in the company have changed.=20
Morningstar analyst Christine Benz, who follows the Janus funds, said manag=
ers of the group's larger funds had been "lightening up" their Enron holdin=
gs this year. She said Blaine Rollins, who manages the Dollars 23bn flagshi=
p Janus fund, said that in September he had sold some of his stake - listed=
as 2.15 per cent of outstanding shares as of April 30 - but did not say wh=
en.=20
Ken Zschappel, manager of the Dollars 11bn Aim Constellation fund, also dec=
lined to discuss his holdings, listed as 0.27 per cent of outstanding share=
s as of March 31. But Aim said the position had since been "trimmed substan=
tially".=20
Other top fund owners, as of the most recent filings, included the Alliance=
Premier Growth fund, the Janus Twenty, Janus Mercury and Janus Growth & In=
come funds, Fidelity Magellan, AXP New Dimensions Fund, Putnam Investors, P=
utnam Voyager and Putnam New Opportunities funds and Morgan Stanley Dividen=
d Growth fund.=20
Copyright: The Financial Times Limited
COMMENT & ANALYSIS - Enron flickers.
By SIMON LONDON and SHEILA MCNULTY.
10/29/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved
COMMENT & ANALYSIS - Enron flickers - Once a paragon of the new economy, th=
e US energy group is under scrutiny for its opaque accounting and free-whee=
ling management, write Simon London and Sheila McNulty.=20
Enron has some explaining to do. For the past decade or more, the Texas-bas=
ed company has basked in the admiration of investors and business school pr=
ofessors eager to understand its transformation from staid utility to fast-=
growing energy trader. Now it faces scrutiny of a more unwelcome kind.
Its share price has been falling since the beginning of this year. The US S=
ecurities and Exchange Commission is investigating multi-million dollar dea=
ls with a private equity fund associated with its own chief financial offic=
er, which resulted in a $1.2bn reduction in shareholders' equity. A hastily=
-convened conference call last week with analysts raised as many questions =
as it answered about these "related-party transactions". The departure of A=
ndy Fastow, the aforementioned CFO, soon followed.=20
With its credit rating under review by two leading ratings agencies, Enron =
has also been forced to draw down bank credit lines. Yesterday if confirmed=
it was trying to establish additional lines of liquidity.=20
"This marks the end of Enron's walk on the wild side," observes Curt Launer=
, an analyst with Credit Suisse First Boston, the investment bank.=20
On the surface, events at Enron can be explained by the combination of dete=
riorating trading conditions, a complex capital structure and poor investor=
relations. But the root causes go back further. The entrepreneurial cultur=
e and dynamic management that fuelled Enron's growth in the 1990s appear to=
have also sown some of the seeds of the present crisis. Therein may lie a =
cautionary tale for all executives trying to sprinkle "new economy" magic o=
n to old economy companies.=20
Enron's transformation began in earnest in 1990 with the arrival of Jeffrey=
Skilling, who was hired from McKinsey, the management consulting firm, to =
develop energy trading.=20
For the previous decade Enron had been emerging as a force in the deregulat=
ing US energy markets under the guidance of Kenneth Lay, a former deputy un=
der-secretary of energy. Mr Lay remains chairman. But it was Mr Skilling wh=
o spearheaded the move into trading energy as well as generating and supply=
ing it.=20
The two sides of the business - trading and generation/supply - have always=
been strange bedfellows. The former demands an entrepreneurial spirit more=
likely to be found on Wall Street than in a utility. Mr Skilling's answer =
in the early 1990s was to bring in talent from outside the company. One of =
his first recruits was Mr Fastow, an expert in securitisation, the repackag=
ing of financial assets so they can be traded in financial markets.=20
The energy trading division tried from the start to differentiate itself. A=
management structure was introduced with only four layers - vice-president=
, director, manager and associate/ analyst - much like a consulting firm. E=
mployees were free to take as much holiday as they liked, so long as they d=
elivered results. As one of Mr Skilling's early recruits recalled: "It was =
all about creating an atmosphere and deliberately breaking the rules."=20
The seemingly free-wheeling style was based on a "loose-tight" management m=
odel expounded by Tom Peters and Bob Waterman, the management writers and M=
cKinsey alumni. At Enron this meant that employees in the merchant energy b=
usiness were encouraged by huge bonuses to pursue new ideas and innovate in=
existing markets.=20
Up-and-coming employees moved freely between projects in pursuit of glory. =
Louise Kitchen, the 32-year-old British executive who was the creative forc=
e behind Enron Online, the group's internet-based trading platform, changed=
jobs or was promoted seven times in five years.=20
Balancing these loose management practices were tight central control of ri=
sk, legal commitments, finance and performance evaluation/remuneration. Mr =
Skilling once described the approach in this way: "As long as you clear you=
r deals or business ideas through those screens, you can do whatever you wa=
nt around here."=20
This approach did deliver growth and innovation. As well as making markets =
in its core energy products, Enron now trades everything from weather deriv=
atives - which enable companies to insure themselves against unfavourable c=
limatic conditions - to broadband telecommunications capacity and metals. T=
he success of Enron Online allows the group to describe itself as the world=
's leading e-commerce company.=20
It has also started marketing electricity to US consumers through a joint v=
enture with International Business Machines and America Online, the interne=
t service provider.=20
In February this year Mr Skilling got his reward: he became chief executive=
of a group ranked seventh in Fortune magazine's list of the 500 most power=
ful US corporations - ahead of such corporate giants as IBM, AT&T, Bank of =
America and Boeing.=20
In retrospect, however, this breakneck pace of growth and innovation was ac=
hieved at a price. First was the personal cost to Mr Skilling. In August he=
abruptly resigned after only six months in the top job. Personal, non-heal=
th related reasons were cited and investors have received no further explan=
ation.=20
A second cost was an enormous increase in financial complexity. In order to=
avoid a ballooning of assets and liabilities as the group expanded, Enron =
used a range of off-balance sheet vehicles to help finance expansion. LJM, =
the private equity fund in which Mr Fastow played a role, is just one of a =
cast of characters to be found in the footnotes to Enron's accounts. Other =
financing vehicles include Osprey, Marlin, Whitewing, Atlantic Water Trust =
and Azurix. "They went after too many things too quickly," says Stephen Moo=
re of Moody's Investors Service, the credit ratings agency.=20
A third cost, associated with the last, was a loss of financial transparenc=
y. The group's extensive use of swaps, options and other derivative financi=
al instruments in its merchant energy business means that investors have li=
ttle idea of how Enron actually makes its money - or the underlying risks t=
o which it is exposed.=20
David Fleischer, an analyst at Goldman Sachs, summed up the views of many i=
nvestors during last week's conference call. He told the group's management=
: "The company's credibility is being severely questioned and there is a ne=
ed for much more disclosure. There is an appearance that you are hiding som=
ething or that there is something going on beneath the surface that may be =
questionable."=20
The fourth cost was a loss of strategic focus. "The problems, in our view, =
stem from Enron venturing too aggressively in areas outside of its core ski=
lls," argues Raymond Niles, analyst at Salomon Smith Barney. "Power plants =
in India, water companies, extension of their franchise to the mass retail =
market, and using a fibre-optic network to deliver content over the interne=
t are all unrelated, or only tangentially related, to their core merchant e=
nergy business."=20
Enron executives also appeared to get carried away with the prospects for s=
ome of these ventures. This time last year Mr Skilling was arguing that Enr=
on Broadband was a business worth $35bn ( #24bn) in its own right. This hel=
ped push the share price to all-time highs - and storing up trouble when tr=
ading volumes failed to materialise.=20
"They over-promised on the new business they created," says Chris Bartlett,=
a professor at Harvard Business School and long-time watcher of the compan=
y. "Enron was trying to ride the dotcom bubble with Enron Online and the br=
oadband business. To some extent they are now paying the price."=20
Will Enron weather the storm? Notwithstanding the risk of further out-of-th=
e-blue financial shocks, most analysts believe that it will. The merchant e=
nergy business remains powerful and profitable. Mr Niles at Salomon Smith B=
arney points out that this side of the group drives more than 80 per cent o=
f earnings and has shown consistent 30-40 per cent annual growth over the p=
ast three years. Assets totalling more than $4bn were also earmarked for di=
sposal before the current crisis erupted, underlining that there is plenty =
of realisable value within the group's portfolio of physical energy assets.=
=20
And yet the doubts remain. It is, ultimately, a question of confidence and =
credibility. Investors suspect that the balance between loose and tight man=
agement methods has tilted too far towards the former. Mr Lay and his team =
will have to tighten up.=20
(c) Copyright Financial Times Ltd. All rights reserved.=20
http://www.ft.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
FRONT PAGE - COMPANIES & MARKETS - Enron asks banks for additional credit.
By SHEILA MCNULTY and GARY SILVERMAN.
10/29/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved
Enron, the troubled US energy group, was attempting yesterday to persuade b=
anks to provide additional credit to bolster its position after a sharp fal=
l in its share price.=20
The Houston-based company was also due last night to hold a special board m=
eeting to consider confidence-building measures after surprise financial di=
sclosures damaged its reputation among US investors.
Last week the company raised $3.3bn (Euros 3.7bn) in cash to bolster its fi=
nancial position but Enron admitted yesterday that it was still looking for=
additional finance. The company insisted, however, that it was in good fin=
ancial health and that its core energy trading business remained strong.=20
Mark Palmer, an Enron spokesman, said he hoped the company would have somet=
hing to announce in coming days from its latest effort to "establish additi=
onal lines of liquidity". "Once we are able to get the liquidity position s=
hored up, that will put a lot of fears of the unknown to rest," Mr Palmer s=
aid.=20
The company's problems have become public since an announcement on October =
16 that it would take a $1.01bn special charge and write down shareholders'=
equity by another $1.2bn. The moves followed losses arising from a private=
equity operation run by Andrew Fastow, its former chief financial officer,=
who was forced to take a leave of absence last week.=20
Enron's share price has fallen more than 50 per cent since the October 16 a=
nnouncement and its bonds have been trading at levels that are technically =
"junk" status, though its official ratings are still investment grade.=20
"Our concern is that a reduction in the debt rating could impair their abil=
ity to operate their trading and marketing operations," said Raymond Niles =
of Salomon Smith Barney. "These activities require at least an investment g=
rade credit rating, or Enron could be subject to an increase in margin requ=
irements."=20
The controversy over Enron's balance sheet adjustment has resulted in a req=
uest for information from the Securities and Exchange Commission. Enron fli=
ckers, Page 22.=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 Seeks Further Credit to Reassure Investors, WSJ Says
2001-10-29 04:30 (New York)
Houston, Oct. 29 (Bloomberg) -- Enron Corp., the largest
energy trader, asked banks to provide a further credit line of as
much as $2 billion in a bid to restore investor confidence in the
company, the Wall Street Journal reported, citing unidentified
officials close to negotiations.
The new credit line is additional to the $3.3 billion credit
line it tapped last week, the paper said, and should be completed
within days.
Investors have shunned the company since Oct. 16 when Enron
reported a third quarter loss of $618 million and wrote down
shareholders' equity by another $1.2 billion, the Journal said.
The stock has fallen by 54 percent since the announcement.
The company's shares were further dented after an investor
sued Enron last month, saying dealings with two partnerships run
by former Chief Financial Officer Andrew Fastow, cost the company
$35 million. The suit also called Fastow's leadership of the
partnerships, set up to cut Enron's debt, a conflict of interest.
USA: REPEAT-Electric cowboys get roped in at the energy corral.
By Janet McGurty
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 26 (Reuters) - Last year, Enron Corp. was a darling of invest=
ors and analysts, but the freewheeling trader of electricity and natural ga=
s now faces a credibility crisis due to a lack of transparency in its busin=
ess dealings.=20
Enron, trying to shake investor jitters over a possible downgrade of its cr=
edit worthiness and their unease over the company's complex financial trans=
actions, has seen its shares shed more than half their market value in the =
past week.
But the largest natural gas and electricity marketer in the United States i=
s not alone in getting its wings clipped as energy prices come down and the=
market volatility that drove earnings last year eases.=20
While Enron's problems differ from more traditional utilities, many other p=
ower producers are returning to their roots. They are scrapping plans for s=
plitting operations and questioning whether more risky overseas operations =
can be supported by lower prices brought on by a slowing economy.=20
Paul Patterson, an energy analyst with ABN Amro, said there are common them=
es affecting the industry.=20
"One is lower power prices and the margins that are associated with them. A=
nd two is lower stock prices and the ability to finance more asset driven g=
rowth," Patterson said.=20
As earnings fall and forward earnings guidance is revised downward, some po=
wer companies are seeking strategies to address the bleaker environment. An=
d plans to spin off units have been postponed or called off.=20
Shares of Enron slid $1.05, or 6.4 percent, to $15.30 in afternoon trade on=
the New York Stock Exchange on Friday.=20
THE WORLD HAS CHANGED=20
AES Corp. , a global power producer whose earnings fell for a second consec=
utive quarter on a poor showing from operations in Brazil and Britain, said=
Thursday it would revamp its organization and did not rule out selling off=
assets.=20
"It's a different place," AES' chief executive officer Dennis Bakke said of=
the business climate facing utilities today compared with last year's powe=
rful growth. On Friday, Constellation Energy Group , parent company of Balt=
imore Gas & Electric, scrapped plans to split its power generation and trad=
ing operations into two company because of economic changes. Constellation =
also hired a new chief executive and severed ties with Goldman Sachs, which=
planned to make an equity investment in the company.=20
"The utility industry and energy markets, and indeed the entire U.S. econom=
y, have changed considerably in the past year. As a combined company, we wi=
ll be better positioned to seize opportunities to grow and deliver," said C=
hristian Poindexter, Constellation's chairman.=20
RETURN TO TRADITIONAL VALUES=20
Bakke said one prong of AES's brave, new world scenario was a renewed empha=
sis on the traditionally profitable, long-term contract generation business=
.=20
It makes sense for power generating companies to sign about 75 percent to 8=
0 percent of their generating capacity into long-term contracts because it =
provides stability and a level of profitability in a period of flat growth,=
according to Gordon Howald, energy analyst with Credit Lyonnaise.=20
"Calpine does it already," he said, referring to the California-based indep=
endent power producer that has the lion's share of the power it generates c=
ontracted out. "What drove the valuations in all these companies last year =
was that power markets were very inefficient. Physical reserve margins were=
low. But with flat to down demand in 2001 - as it appears to be the case -=
there is very little to lead us to believe that power prices will be anywh=
ere near that level," he added.=20
Howald said with all the new generation coming on, natural gas prices shoul=
d remain high but power prices should come down further, squeezing spark sp=
reads, or profit margins, for solely gas fired companies.=20
SMALLER COMPANIES ALSO RETHINK STRATEGIES=20
As lower power prices impact earnings, many power companies are turning bac=
k to U.S. markets to try to maximize their bottom line.=20
"Earnings for the quarter is not the big deal. The big deal is that for 200=
2 they are not going to earn as much as people expected. It's a downward re=
vision of earnings guidance." said Patterson.=20
Michigan-based CMS Energy Corp. cut its earnings estimates for the second t=
ime to $2 to $2.05 for 2002, down from $2.79 and said it would sell off cer=
tain overseas assets and focus future growth primarily in North America.=20
CMS, whose earnings were down for the third quarter, said it took a charge =
for planned divestitures, includingdiscontinued South American energy distr=
ibution units as well as other international investments.=20
Allegheny Energy Inc. also changed its strategy after reporting a fall in t=
hird quarter earnings.=20
The Maryland-based company said while it is continuing to work towards gett=
ing necessary regulatory approvals for a initial public offering to hold it=
s unregulated assets, it will not proceed with the offering at this time.=
=20
"The company will integrated until market conditions are such that demonstr=
ated value can and will be created for shareholders," Allegheny said.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron seeks new credit line; reportedly for 1-2 bln usd
10/29/2001
AFX (AP)
Copyright 2001 AFX News; Source: World Reporter (TM)
NEW YORK (AFX) - Enron Corp is negotiating with banks for a new credit line=
, a spokesman told the Wall Street Journal.=20
The company is in talks to raise between 1-2 bln usd and is likely to close=
a deal within days, it quoted officials familiar with the matter as saying=
.
The deal, which is intended to head off a potential loss of investor and bu=
siness confidence, would supplement existing lines. These are largely tappe=
d out after Enron last week drew down about 3 bln usd to increase cash rese=
rves and calm market fears.=20
Enron earlier this month announced a heavy third quarter loss and erosion o=
f shareholder equity related to controversial transactions it had done with=
entities connected to its then chief financial officer, Andrew Fastow.=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
Markets
Enron Said Seeking New Credit Lines
BY LAURA MANDARO and ALISSA SCHMELKIN
10/29/2001
American Banker
31
Copyright (c) 2001 Thomson Financial, Inc. All Rights Reserved.
The Texas energy and telecommunications giant Enron Corp. was reportedly ne=
gotiating with its lenders about new credit lines Friday, a day after it dr=
ew down billions on its existing lines.=20
J.P. Morgan Chase & Co. and Citigroup Inc. are the two banking companies wi=
th the largest lending exposure to the $67 billion-asset Houston company, w=
ith an estimated $400 to $500 million in bank debt outstanding "in addition=
to derivatives and other structured product exposures," according to Goldm=
an Sachs Group Inc. analyst Lori Applebaum.
Morgan Chase and Citi were the book runners on a 364-day, $2.25 billion loa=
n facility to Enron that closed in May, according to Thomson Financial Secu=
rities Data. Credit Suisse First Boston was the sole bookrunner on a $582 m=
illion loan to the company that closed in March and matures in March 2004, =
the data company said. Bank of America, Citigroup, and Deutsche Bank also p=
articipated, Securities Data said.=20
On Thursday, Enron issued a statement that "in order to dispel uncertainty =
in the financial community," it had drawn on its committed lines of credit =
to provide over $1 billion of cash liquidity. The Wall Street Journal repor=
ted on Friday that Enron drew down about $3 billion from a credit line and =
was in talks about obtaining a new multibillion-dollar line.=20
"We continue to have conversations new our creditors about new liquidity --=
that's nothing out of the ordinary," said Enron spokesman Eric Thode.=20
The developments followed a $638 million loss for the third quarter, the de=
parture of Enron's chief financial officer, and a Securities and Exchange C=
ommission inquiry.=20
Enron, a natural gas company that has broadened its focus to include energy=
trading, transport, risk-management, and telecommunications products and s=
ervices, has relationships with banks that extend beyond credit lines.=20
"Citi, J.P. Morgan, and possibly Wachovia and Bank of America also invested=
along with Enron in some of its partnerships," said Ms. Applebaum. A spoke=
sman for Morgan Chase confirmed that the bank was a lender but said he did =
not know the amount of its exposure.=20
Many other regional banks have participated in credit facilities to Enron. =
Bank of America Corp. is estimated to have about $200 million to $300 milli=
on of exposure; Bank One Corp. about $100 million; and Wachovia Corp., SunT=
rust Banks Inc., and FleetBoston Financial Corp. about $50 million each, ac=
cording to Goldman Sachs estimates. Bank of New York has between $50 to $10=
0 million of exposure, and Northern Trust, U.S. Bancorp and KeyCorp also ha=
ve some lending exposure, Ms. Applebaum said.=20
Representatives of these banks would not comment on their relationships wit=
h Enron, or did not return phone calls by deadline.
http://www.americanbanker.com=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
USA: Enron in talks for $1-2 bln credit line - WSJ.
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. is negotiatin=
g with banks for a new credit line of between $1 billion and $2 billion and=
could close a deal within days, the Wall Street Journal reported in its on=
line edition on Monday.=20
According to officials close to the situation, the new credit would supplem=
ent existing credit lines, largely tapped out after the company drew down a=
bout $3 billion last week to increase cash reserves and calm jittery invest=
ors' fears, the Journal reported.
The paper said that an Enron spokesman had confirmed that the company is ne=
gotiating a new credit line, but could not supply any further details.=20
Confidence in Enron has been shattered following disclosures about its invo=
lvement in complex partnerships. Its stock has tumbled amid a U.S. Securiti=
es and Exchange Commission inquiry into the company's ousted Chief Financia=
l Officer's links to some of the partnerships.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
JAPAN: Japan's Teijin, Enron study coal-fired power plant.
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
TOKYO, Oct 29 (Reuters) - Japan's major polyester manufacturer, Teijin Ltd =
, said on Monday it would conduct a feasibility study with U.S. energy gian=
t Enron Corp on building a coal-fired power plant.=20
Teijin said in a statement that it and E Power Corp, a Japanese affiliate o=
f Enron Corp, would look into building the 70,000 kilowatt coal-burning the=
rmal power plant in Matsuyama, Ehime prefecture, on the southwestern island=
of Shikoku, where Teijin has a polyester plant.
"We are beginning to consider selling surplus power to third parties other =
than our own plants, with eyes on further deregulation in Japan's power mar=
ket," a Teijin spokesman said.=20
Japan is in the process of deregulating its power market. Since March last =
year, large-lot consumers have been free to choose their suppliers.=20
In its polyester business, Teijin has expanded overseas output while reduci=
ng domestic production, a trend which would leave it with surplus power. It=
is thus looking at how to make good use of any surplus.=20
The two firms were also considering expanding the capacity of Teijin's exis=
ting power generator in Matsuyama, Teijin said. It hopes to reduce costs at=
the inefficient small plant with the help of Enron.=20
Enron Corp said earlier this year it had presented plans to build a liquefi=
ed natural gas (LNG) fired power plant in northern Japan, aiming to become =
the first foreign company to build such a power plant in Japan.=20
The Teijin spokesman said the two firms hoped to conclude the feasibility s=
tudy by June 2002.=20
Teijin's shares ended the day down 13 yen or 2.68 percent at 472 yen.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron, Teijin to Build Power Plant in Japan, Report Says
2001-10-28 23:39 (New York)
Tokyo, Oct. 29 (Bloomberg) -- Enron Corp. and Teijin Ltd.
will jointly build a coal-fired power plant in southwestern Japan
as early as 2004, the Nihon Keizai newspaper said on its wire
service, without citing sources.
Enron, the world's biggest energy trader, and synthetic-
fiber maker Teijin will together spend 1 billion yen ($8.16
million) to build the 70,000-kilowatt plant in Ehime, southwest of
Tokyo, the report said.
Enron wants to eventually build bigger plants and sell
electricity directly to large commercial users without going
through exiting utilities, the report said.
Money and Business/Financial Desk; Section 3
Once-Mighty Enron Strains Under Scrutiny
By ALEX BERENSON and RICHARD A. OPPEL Jr.
10/28/2001
The New York Times
Page 1, Column 2
c. 2001 New York Times Company
IS time running out for Enron?=20
At the beginning of this year, the Enron Corporation, the world's dominant =
energy trader, appeared unstoppable. The company's decade-long effort to pe=
rsuade lawmakers to deregulate electricity markets had succeeded from Calif=
ornia to New York. Its ties to the Bush administration assured that its vie=
ws would be heard in Washington. Its sales, profits and stock were soaring.
And under the leadership of Jeffrey K. Skilling, its chief executive, Enron=
's arrogance had grown even more quickly.=20
The company, based in Houston, dripped contempt for the regulators and cons=
umer groups that stood between it and fully deregulated markets -- for elec=
tricity, water and everything else. Everyone would win under deregulation, =
Enron said -- especially its shareholders, whose stock would soar as the co=
mpany profited from creating new markets.=20
''We are on the side of angels,'' Mr. Skilling said in March, dismissing th=
ose who saw the company as a profiteer in California's energy crisis. ''Peo=
ple want to have open, competitive markets. They want fair competition. It'=
s the American way.''=20
But less than a year later, everybody seems to have lost, especially Enron'=
s investors. Enron's stock is plunging, and questions about its finances ar=
e mounting.=20
Some experts in the energy industry worry that if the crisis at the company=
worsens, trading in natural gas and electricity could be seriously disrupt=
ed and energy prices could grow more volatile. In a worst-case outlook, Enr=
on could become the 2001 version of Long-Term Capital Management, the huge =
hedge fund whose collapse roiled financial markets during the fall of 1998.=
Enron's shares have fallen more than 80 percent this year, erasing $50 bil=
lion in shareholder value.=20
Enron closed on Friday at $15.40, down 95 cents, after hitting a 52-week lo=
w of $15.04 earlier in the day.=20
The future of electricity deregulation is in doubt, thanks to blackouts and=
soaring power prices in California earlier this year -- a crisis that ende=
d only when that state contradicted deregulation's basic tenets by interven=
ing deeply in the power market. Enron's efforts to become a profit-making w=
ater supplier and to create a new market in broadband communications capaci=
ty have been expensive failures. In August, Mr. Skilling quit, forcing Kenn=
eth L. Lay, his predecessor as chief executive and still Enron's chairman, =
to resume day-to-day control of the company.=20
The company declined to make senior executives, including Mr. Lay, availabl=
e for comment, and asked that questions be submitted in writing. Mr. Skilli=
ng could not be reached.=20
Enron's problems boiled over earlier this month, when it disclosed that its=
shareholders' equity, a measure of the company's value, dropped by $1.2 bi=
llion in the last quarter because of a deal disclosed only very hazily in E=
nron's regular financial statements. The Securities and Exchange Commission=
is looking into the company's financial reporting, and some investors ques=
tion whether Enron has overstated profits at its primary business of tradin=
g electricity and natural gas.=20
THE slump in the company's shares accelerated after Enron revealed the fall=
in its shareholders' equity. On Wednesday, the company forced out its chie=
f financial officer, Andrew S. Fastow, who is at the center of the controve=
rsy over Enron's confusing finances. The company, which six months ago seem=
ed to be reaping billions of dollars from California's energy crisis, today=
faces a potential cash crunch.=20
The surprise about shareholder equity inflamed investors' smoldering concer=
n about Enron's opaque financial statements. Now, with Wall Street analysts=
and bond-rating agencies demanding more information about the complex tran=
sactions that have fueled the company's profits, Enron has been reduced to =
issuing news releases assuring investors that it has adequate access to cas=
h.=20
Enron does not appear to be in immediate danger of running out of cash. On =
Thursday, the company drew down a $3.3 billion credit line it had previousl=
y arranged with a group of banks led by Citigroup and J. P. Morgan Chase, w=
hich have each extended at least $400 million. But because of Enron's impor=
tance in the natural gas and electricity markets, industry experts say that=
any problem at the company could disrupt energy trading nationwide.=20
The supply of natural gas and electricity would probably not be affected ev=
en if the company failed, because Enron is mainly a trader, rather than a p=
roducer, of energy. But a crisis at the company might increase the volatili=
ty of energy prices, which have swung wildly in the last year.=20
Philip K. Verleger Jr., an energy-markets economist, emphasized that he tho=
ught Enron would survive this crisis. But he said it was not clear what wou=
ld happen if Enron ran out of cash or if traders that use the company's Enr=
onOnline Internet trading marketplace defaulted on their obligations.=20
''You suddenly have all these positions they have taken on there -- are the=
y good? Are the firm's hedges good? What's the situation?'' Mr. Verleger sa=
id. ''It's got everyone scared.''=20
In the short run, Enron's credit rating may be its biggest problem. If the =
company's rating falls below investment grade, Enron could be forced to iss=
ue tens of millions of shares of stock to cover loans that it has guarantee=
d. But creating new shares would make the shares that already exist less va=
luable, because those shares would no longer represent full ownership of th=
e company.=20
A drop in the company's credit rating could also prompt other energy trader=
s and producers to back away from doing business with Enron, hurting the co=
mpany's sales and profits.=20
Enron's credit rating stands several notches above the critical point. But =
its bonds, which are publicly traded, have fallen so low that they are now =
offering interest rates of almost 10 percent, comparable with many junk bon=
ds. Two of the three major credit-rating agencies, Moody's Investors Servic=
e and Fitch Investors Service, have put Enron's bonds on review for possibl=
e downgrades.=20
''The issue that's in the front of everybody's mind right now is credit,'' =
said Mark Gurley, senior vice president and general manager for trading at =
Aquila Inc., one of the nation's largest energy traders. Aquila is based in=
Kansas City, Mo.=20
For now, Aquila and other major energy traders and producers, including Rel=
iant Energy, the El Paso Corporation and Dynegy, are continuing to do busin=
ess with Enron. And Mr. Gurley said that Enron's own trading in the electri=
city and natural gas markets did not suggest the sort of frenzied selling r=
eminiscent of the collapse of Long-Term Capital Management in 1998.=20
''They haven't done anything trading-wise that gives me any indication they=
are closing their books down,'' he said.=20
Still, some executives at other companies said they were looking more caref=
ully at transactions with Enron, especially long-term contracts. They also =
said risk-management and credit officers were calling each other regularly =
to discuss the situation.=20
Mark Palmer, an Enron spokesman, said on Friday that no energy-trading comp=
any had stopped doing business with Enron. He declined to say whether any o=
f the company's trading partners had suspended or altered credit terms. He =
said the company was continuing to see normal volumes of business.=20
But the crisis that Enron will face if its credit rating is downgraded is j=
ust a symptom of the bigger problem the company must confront. For years, t=
he details of Enron's finances have been a mystery even to the Wall Street =
analysts whose job it is to follow the company, and to the investors who ow=
n its stock and bonds. When Enron's profits were soaring and it was creatin=
g lucrative new markets, shareholders did not seem to care about the impene=
trability of its financial statements.=20
Now they do. Yet the company seems incapable of offering straight answers t=
o the questions investors ask.=20
To others in the industry, the opaqueness of the company's financial statem=
ents parallels Enron's efforts to keep its energy-trading business lightly =
regulated and free of disclosure requirements. Though they do not expect En=
ron to crumble like Long-Term Capital Management, they say that, like the g=
iant hedge fund, Enron uses a lot of debt, regulatory oversight is limited =
and outsiders have a difficult time figuring out its finances.=20
The most pressing concerns are a series of partnerships and trusts Enron cr=
eated to move some of its assets and debt off its balance sheet. With names=
like Marlin and Osprey, the partnerships have at least $3.3 billion in bon=
ds outstanding, backed by assets like a stake in Azurix, Enron's water comp=
any subsidiary. Enron has promised that if the partnerships' debts exceed t=
he value of their assets, Enron will issue enough new shares to make up the=
difference.=20
DEALS with partnerships formed by Mr. Fastow, who was chief financial offic=
er when they were organized, led to the $1.2 billion write-off in sharehold=
ers' equity that Enron announced last week. The company has offered only sk=
impy details of its transactions with those partnerships.=20
Enron ended its relationships with those partnerships in the last quarter, =
after being criticized by shareholders. In the process, it wrote off a prom=
issory note that it had carried on its books, reducing its shareholders' eq=
uity by $1.2 billion. But, because of complex accounting rules, the transac=
tion was not apparent in Enron's quarterly earnings report.=20
The transaction disturbs investors because it suggests that Enron may have =
found a way to hide losses, throwing the accuracy of its financial statemen=
ts into question. When Enron released third-quarter earnings on Oct. 16, it=
reported a loss from $1 billion in write-offs on failed investments. The e=
arnings statement did not mention the additional $1.2 billion equity write-=
down. But the company said its core business had been solidly profitable, a=
nd its shares rose.=20
In a conference call with analysts after the announcement, Mr. Lay, Enron's=
chairman, also disclosed the reduction in shareholder equity. The referenc=
e was a brief one, however, and some listeners did not catch it. Those anal=
ysts were angered when they found out the next day what Enron had done, and=
many were confused by the accounting procedure. Enron's stock began to sli=
de, and investors clamored for more information about the write-off. But so=
far, the company's efforts to clear up the situation have further unnerved=
investors.=20
Mr. Lay has met with investors during the last two weeks to try to explain =
the deals, but some on Wall Street say they have come away with doubts abou=
t Mr. Lay's grasp of the situation. They say that the two people at Enron w=
ho appear to have been most knowledgeable about the deals -- Mr. Skilling a=
nd Mr. Fastow -- have both left the company.=20
In an interview in late August, Mr. Lay said he did not know some details a=
bout the deals involving Mr. Fastow. In response to one question about them=
, he said, ''You're getting way over my head.''=20
Mr. Palmer of Enron disputed any suggestion that Mr. Lay did not have a gra=
sp of the investments at issue, saying Mr. Lay was handicapped in talking a=
bout them because of the S.E.C. investigation. ''There is not a whole lot w=
e can say, or should say, about them,'' Mr. Palmer said. He also said the c=
ompany expected to generate about $3 billion in cash through asset sales by=
the end of next year.=20
In a conference call on Tuesday, analysts pressed Mr. Lay and other top Enr=
on executives to reveal more information about the LJM write-down and its o=
ther partnerships. Instead, they offered only vague explanations of the dea=
l, leaving Wall Street worried that more write-offs might be coming.=20
David Fleischer, a Goldman, Sachs analyst and a longtime supporter of the c=
ompany, was among those who came away concerned. ''If Enron is unable to cl=
arify its off-balance-sheet transactions and restore confidence in the very=
near term by assuring investors that no more surprises are forthcoming tha=
t would affect the balance sheet or liquidity position, then the company wi=
ll likely lose access to the capital markets,'' he wrote in a research note=
after the call.=20
To try to reassure investors, Enron said late Thursday that EnronOnline, it=
s Internet-based trading exchange, executed more than 8,400 trades that day=
, a higher-than-normal volume.=20
''We know we have our work cut out for us if we are to rebuild our credibil=
ity with the investment community -- and we're working on that,'' Mr. Lay s=
aid in a statement. ''But in the meantime, the best evidence of our strengt=
h is the willingness of customers to bring their business to Enron.''=20
But those reassurances apparently are no longer enough for Wall Street. Enr=
on's stock tumbled almost 6 percent Friday, to its lowest levels in six yea=
rs.=20
Now analysts are scrambling to figure out the extent of Enron's off-balance=
-sheet debt and to assess the risk that the company will have to issue new =
shares to make good on its partnership guarantees.=20
Carol Coale, an analyst at Prudential Securities in Houston, calculates tha=
t Enron may have close to $9 billion in off-balance-sheet debt. She said th=
at Enron had for two years been trying to sell about $6 billion in foreign =
assets -- including properties in Latin America and a power plant in India =
embroiled in a dispute with the state government -- and she worries about t=
hose prospects for sale in light of Enron's problems and the souring econom=
y.=20
''As Enron is forced to sell assets to keep the ratings agencies off their =
backs, they may have to write those assets down,'' Ms. Coale said. On Wedne=
sday, she downgraded her rating on Enron to ''sell'' from ''neutral.''=20
''The bottom line is, it's really difficult to recommend an investment when=
management does not disclose the facts,'' Ms. Coale said.=20
Short-sellers, who attacked Enron's accounting even before the company disc=
losed the write-off, say the company's problems may run even deeper than an=
alysts fear. Enron may have used the partnerships not just to finance money=
-losing investments but to hide losses in its core trading business, they s=
ay.=20
''The company still isn't disclosing enough to know whether the core busine=
ss, the trading business, is profitable,'' said Mark Roberts, director of r=
esearch at Off Wall Street, which recommended shorting Enron's stock on May=
7, when it stood at $59.43. ''The issue remains: why are they doing these =
transactions? Our theory has been that the core operations aren't that prof=
itable.''=20
James Chanos, a leading short-seller who has bet that Enron's stock will fa=
ll, said, ''Is Enron booking gains when it has real profits, but hiding the=
losses when deals go against it?'' Mr. Palmer of Enron said the company st=
ood by its reported energy-trading profits.=20
Even traders at other energy companies say they do not have a clear picture=
of Enron's positions. Enron maintains that it is in no danger of being wip=
ed out by a sharp move in electricity or gas prices because it keeps its tr=
ading book balanced -- meaning the energy it has agreed to sell is offset, =
in roughly equivalent amounts, by energy it has agreed to buy.=20
''With these guys, they tell us -- and all you've got is their word -- that=
they're hedged,'' said Mr. Verleger, the economist.=20
IN fact, Enron has lobbied forcefully over the years to limit regulation an=
d disclosure of its trading operations. Last year, the company successfully=
lobbied Congress to effectively ensure that its Internet-trading platform =
would be exempted from regulation by the Commodity Futures Trading Commissi=
on.=20
Enron and other power traders do file limited information in reports to the=
Federal Energy Regulatory Commission, the agency that oversees wholesale e=
lectricity and natural gas markets. But the commission does not keep track =
of specific transactions and prices.=20
Large-scale energy trading has existed for only about a half-dozen years. E=
nron pioneered the business, and now dominates it, accounting for about one=
-quarter of all trading in the United States.=20
Before Congress and federal regulators opened up the market for wholesale e=
lectricity, a process that began in earnest a decade ago, the power busines=
s was a simpler affair. Utilities were given areas of monopoly service, and=
their rates -- and ability to deliver enough electricity -- were overseen =
by state regulators. But with the move to deregulate the business, independ=
ent and unregulated generators and traders have flourished, providing an ev=
er-growing portion of the nation's power.=20
Beginning in the 1980's, the sale and transportation of natural gas was als=
o deregulated, spurring Enron, which used to be primarily a gas-pipeline co=
mpany, to move into the trading business.=20
The company's shift to trading gas and electricity accelerated in the mid-1=
990's, with the ascension of Mr. Skilling, who became chief executive in Fe=
bruary, just six months before his unexpected resignation. Underscoring the=
change in direction, in securities filings this year Enron described its p=
rincipal business as ''security brokers, dealers and flotation.'' Before, i=
t had said it was in the business of ''wholesale-petroleum and petroleum pr=
oducts.''=20
For most of its ascent, Enron reported outstanding profit figures and Wall =
Street accepted them with pleasure. A year ago, when it disclosed the first=
transactions with partnerships led by Mr. Fastow, the company's former chi=
ef financial officer, analysts who asked questions were told that the deals=
were routine and were being disclosed only because of Mr. Fastow's involve=
ment.=20
Enron does not appear to face an immediate cash crunch. But the bank credit=
lines that it drew on last week to pay off its short-term debt will have t=
o be renegotiated next spring. The controversial partnerships do not have t=
o pay their debts until the following year -- unless Enron loses its invest=
ment-grade credit rating before that.=20
ENRON will also need to maintain its large trading positions, which could s=
uffer if participants in those markets grow more nervous about Enron's cred=
it. When Long-Term Capital was stumbling in 1998, some Wall Street rivals s=
old the securities they thought Long-Term owned, trying to force Long-Term =
to sell its positions quickly and at a loss. Something similar in energy ma=
rkets might be possible. If so, Enron might find, as Long-Term did, that po=
sitions that should offset each other do not.=20
Enron's new chief financial officer may yet persuade investors that in fact=
the company's profits are real, and that its condition is better than the =
short-sellers believe. As questions are answered, confidence, and the share=
price, could rebound.=20
But for now, investors are skittish, and some competitors are eager to take=
advantage of Enron's plight.
Photos: Enron, which is building a new headquarters in Houston, grew with d=
eregulation. But with deregulation in doubt, Enron stock has dropped. (Phil=
lippe Diederich for The New York Times); Enron owns 65 percent of the power=
plant in Dabhol, India, but has had trouble collecting payments. (The New =
York Times)(pg. 13); 'We know we have our work cut out for us,' says Kennet=
h L. Lay, Enron's chief. (WGBH/''Frontline'')(pg. 1) Chart: ''Enron's Board=
'' Directors have not addressed the company's current difficulties, a spoke=
sman said. KENNETH L. LAY: 58 Chairman JOHN H. DUNCAN: 73 Former chairman o=
f the executive committee, Gulf and Western Industries ROBERT A. BELFER: 65=
Chairman, Belco Oil & Gas CHARLES A. LEMAISTRE: 77 President emeritus, M. =
D. Anderson Cancer Center, University of Texas ROBERT K. JAEDICKE: 72 Profe=
ssor emeritus, Graduate School of Business, Stanford RONNIE C. CHAN: 51 Cha=
irman, Hang Lung Group WENDY L. GRAMM: 56 Director, Mercatus Center, George=
Mason University JOHN MENDELSOHN: 64 President, M. D. Anderson Cancer Cent=
er, University of Texas PAULO V. FERRAZ PEREIRA: 46 Executive vice presiden=
t, Group Bozano JOHN WAKEHAM: 68 Former British Secretary of State for Ener=
gy NORMAN P. BLAKE JR.: 59 Chief executive, Comdisco KEN L. HARRISON: 58 Fo=
rmer chief executive, Portland General Electric (FORMER ENRON EMPLOYEE) JER=
OME J. MEYER: 63 Chairman, Tektronix FRANK SAVAGE: 62 Chairman, Alliance Ca=
pital Management International JOHN A. URQUHART: 72 Adviser to the chairman=
, Enron HERBERT S. WINOKUR JR.: 57 President of Winokur Holdings (FORMER EN=
RON EMPLOYEE) (pg. 13)=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Money and Business/Financial Desk; Section 3
Plumbing Mystery Of Deals By Enron
By FLOYD NORRIS
10/28/2001
The New York Times
Page 13, Column 6
c. 2001 New York Times Company
AT the heart of the sudden collapse in investor confidence in the Enron Cor=
poration are unusual trades it entered into with partnerships led by its ch=
ief financial officer, Andrew S. Fastow, beginning in the summer of 1999. B=
ecause they were transactions among related parties, the company was requir=
ed to disclose them, but the disclosures raised as many questions as they a=
nswered. Following are some questions that investors are asking, and the cu=
rrently available answers.=20
Q. Why did Enron enter into the deals?
A. Enron's first disclosures, in 1999, gave no reason. In later reports, it=
said it was seeking to ''hedge certain merchant investments and other asse=
ts,'' by which it apparently meant investments in technology and telecommun=
ications companies.=20
Q. How did those investments do?=20
A. It looks as if they plunged in value, although there is no clear disclos=
ure on that.=20
Q. Why can't that be discerned?=20
A. The company never said just what the investments were. And the transacti=
ons with the partnerships were complicated, involving a variety of derivati=
ve securities, Enron stock and various promissory notes. Enron's financial =
disclosures do not provide enough information to understand the arrangement=
s completely.=20
Q. Why were they so complicated?=20
A. One reason may have been to use accounting rules to its advantage. One a=
ccounting rule dictates that companies may not record profits or losses on =
transactions in their own stock. If a company sells its shares at $10 each =
and then buys them back -- whether for $1 or $50 -- there is no gain or los=
s. But shareholder equity does go up or down on the balance sheet -- in tha=
t case reflecting how much extra cash the company took in, or paid out, on =
the transactions. Enron's transactions appear to have been structured to fa=
ll under that rule.=20
Q. Who made money from these transactions?=20
A. Enron reported some profits along the way from the deals, although not a=
ll of the profits were spelled out in its quarterly filings. And it appears=
that the partnerships distributed money to investors.=20
Q. If the deals began in 1999, why all the uproar now?=20
A. Many investors and analysts were not curious about them when everything =
seemed to be going well. As long as Enron was exceeding its forecasted prof=
its each quarter, they were willing to assume that what was not being discl=
osed was not really important.=20
Q. When were concerns raised with Enron?=20
A. The complaints grew as Enron's share price fell earlier this year. By th=
is summer, Enron decided that Mr. Fastow would sell his stake in the partne=
rships. Then, because the partnerships would no longer be considered relate=
d to Enron, the company would no longer have to disclose anything about the=
transactions. But investors were still worried, and Enron later closed out=
its deals with the partnerships.=20
Q. How did Enron do?=20
A. Badly. It took a $35 million loss, which, given the size of the transact=
ions involved and the previous profits taken, was not very much. But it als=
o reduced shareholder equity by $1.2 billion.=20
Q. How did that happen?=20
A. That, like so much else, is not clear. But it looks as if the partnershi=
p owed Enron that much money, could not pay and was let off the hook by Enr=
on. In return, Enron terminated ''previously recorded contractual obligatio=
ns to deliver Enron shares in future periods.'' Enron treated that like a s=
hare buyback, even though the shares in question had not been issued, and d=
etermined that there was no need to treat it as a loss that would reduce re=
ported earnings.=20
Q. Is that legal under the accounting rules?=20
A. Presumably it is. But Enron's limited disclosures make it impossible to =
say for sure. Enron may have discovered ways to use the accounting rules to=
enable it to keep losses off income statements, while leaving profits on t=
hem. That may become clearer when the Securities and Exchange Commission, w=
hich has begun preliminary inquiries, completes its work. FLOYD NORRIS
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Money and Business/Financial Desk; Section 3
DataBank
Investors Seem to Ignore Discouraging News
By MICHAEL BRICK
10/28/2001
The New York Times
Page 17, Column 3
c. 2001 New York Times Company
Investors sent stocks markedly higher last week, despite reports on the eco=
nomy and corporate profits that were resoundingly poor.=20
The Dow Jones industrial average, strengthened by triple-digit rallies on M=
onday and Thursday, ended the week nearly back to its level of Sept. 10, on=
e day before the attacks on the World Trade Center and the Pentagon. Broade=
r indicators ended slightly higher than they were on Sept. 10.
Investors overcame their initial discouragement about reports that orders f=
or durable goods and sales of existing homes were deteriorating faster than=
expected. They also seemed unfazed by reports of corporate profits declini=
ng from a year ago, at some companies by more than 30 percent.=20
All the bad news, investors seemed to surmise, meant that the government wa=
s more likely to act aggressively in stimulating the economy, with tax brea=
ks, spending and lower interest rates.=20
The Dow average gained 341.06, or 3.7 percent, to close at 9,545.17. The Na=
sdaq composite index rose 97.65 points, or 5.8 percent, to 1,768.96. The St=
andard & Poor's 500-stock index rose 31.13, or 2.9 percent, to 1,104.61.=20
MICHAEL BRICK
Charts: ''STOCKS IN THE NEWS'' Enron NYSE: ENE The energy trading company o=
usted its chief financial officer, Andrew S. Fastow, whose involvement in c=
omplicated transactions with Enron caught the attention of the S.E.C. Frida=
y's Close: $15.40 Week's Change: -40.88% EST. '01 P/E: 8.52 SBC Communicati=
ons NYSE: SBC The company posted a 30 percent decline in earnings and said =
it would cut thousands of jobs because of the weak economy and strong compe=
tition. Friday's Close: $39.20 Week's Change: -10.17% EST. '01 P/E: 16.82 W=
alt Disney NYSE: DIS After trimming $100 million from the price, Disney com=
pleted its purchase of the Fox Family Worldwide cable television operation.=
The deal included $2.9 billion in cash and $2.3 billion in assumed debt. F=
riday's Close: $18.71 Week's Change: +1.19% EST. '01 P/E: 25.28 Microsoft N=
NM: MSFT Microsoft introduced its computer operating system, Windows XP, th=
e latest version of its flagship product. Friday's Close: $62.20 Week's Cha=
nge: +7.43% EST. '01 P/E: 33.88 Vysis NNM: VYSI The drug maker Abbott Labor=
atories has agreed to acquire Vysis, a laboratory products maker, in a stoc=
k deal worth about $355 million. Friday's Close: $30.25 Week's Change: +47.=
13% EST. '01 P/E: -- WorldCom NNM: WCOM The long-distance telephone company=
posted a 44 percent drop in its third-quarter profit and warned that sales=
growth in its core data and Internet business would slow in the final quar=
ter and in 2002. Friday's Close: $13.38 Week's Change: +1.59% EST. '01 P/E:=
12.15 Affymetrix NNM: AFFX Affymetrix settled a patent lawsuit over DNA an=
alysis technologies with a rival, Hyseq, and the companies plan to form a j=
oint venture. Friday's Close: $31.70 Week's Change: +72.66% EST. '01 P/E: -=
- Overture Services NNM: OVER The Internet search service, formerly called =
GoTo.com, reported a profit in the third quarter and higher sales, as its p=
ay-per-listing service remained popular with advertisers. Friday's Close: $=
25.50 Week's Change: +32.88% EST. '01 P/E: -- (Source: Bloomberg Financial =
Markets)=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron Asks Banks for More Credit After Stock Slide, FT Reports
2001-10-28 20:20 (New York)
Houston, Oct. 28 (Bloomberg) -- Enron Corp., the largest
energy trader, asked banks to provide further credit after tapping
a $3.3 billion credit line last week to bolster investor
confidence, the Financial Times reported, citing company sources.
Enron's stock has fallen more than 50 percent since Oct. 17
when an investor sued the company for conflict of interest over
transactions with affiliates run by Enron's former Chief Financial
Officer Andrew Fastow.
The company has been shut out of the leading market for low-
interest, short-term loans since announcing Oct. 16 it would take
a $1.01 billion special charge and write down shareholders' equity
by another $1.2 billion, the FT said.
Enron spokesman Mark Palmer said he hoped the company would
announce the new financing facility in coming days, the newspaper
said.
Enron Asks Banks For Additional Credit -FT
10/28/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Enron Corp. (ENE) is attempting to persuade banks to=
provide additional credit, The Financial Times reported on its Web site Su=
nday.=20
The company was also due to hold a special board meeting Sunday to consider=
confidence-building measures after surprise financial disclosures damaged =
its reputation among U.S. investors, The Financial Times reported.
The Financial Times quoted Enron spokesman Mark Palmer as saying he hoped t=
he company could have something to announce in coming days as a result of i=
ts latest effort to "establish additional lines of liquidity."=20
"Once we are able to the liquidity position shored up, that will put a lot =
of fears of the unknown to rest," The Financial Times quoted Palmer as sayi=
ng.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business; Financial Desk
Week in Review TOP STORIES OCT. 22-26 Lockheed Edges Out Boeing for Contrac=
t
Abigail Goldman; Joseph Menn; Jesus Sanchez; Jeff Leeds; Chuck Philips; Meg=
James; Nancy Rivera Brooks; Evelyn Iritani; James F. Peltz; Myron Levin; P=
eter Pae
10/28/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company
The vote is in. Lockheed Martin Corp. won the coveted right to build the na=
tion's next-generation fighter aircraft, beating out Boeing Co. for what co=
uld be the biggest military contract ever.=20
Culminating a five-year battle between two of the world's largest defense c=
ontractors, Pentagon officials picked Lockheed Martin to begin development =
of the Joint Strike Fighter, with plans to purchase 3,000 of the planes at =
a cost of more than $200 billion.
With the potential for foreign sales topping another $200 billion, the cont=
ract is considered the most lucrative in U.S. history. "This really is the =
contract of the millennium," said Christopher Hellman, analyst with the Cen=
ter for Defense Information. "Nothing has or will come close. "=20
Peter Pae=20
Ford Settles Lawsuit Over Faulty Part=20
In the largest automotive class-action settlement in history, Ford Motor Co=
. will reimburse customers who paid hundreds of millions of dollars to repl=
ace a faulty part that caused their vehicles to stall.=20
It was uncertain how many consumers would qualify for reimbursements in the=
range of $160 apiece.=20
The settlement caps six years of litigation. Plaintiffs' lawyers said the c=
ost to Ford would be as high as $2.7 billion.=20
Myron Levin=20
AMR Posts Record Loss in Quarter=20
Even though more Americans are flying again, the airline industry continues=
to reel and its problems are expected to worsen this holiday season.=20
AMR Corp., the parent of American Airlines, the world's largest airline, po=
sted a record loss for the third quarter, even after getting $508 million i=
n federal financial aid.=20
Although the number of passengers has kept growing each week since the Sept=
. 11 attacks, about 20% fewer people are flying.=20
Less than a month before the busy Thanksgiving weekend, American Airlines s=
ays advance bookings for November are down 6% from a year earlier.=20
Meanwhile, the airlines are now reporting a little-noticed aspect of the go=
vernment rescue package: They have to pay federal taxes on the cash grants.=
=20
James F. Peltz=20
ITC Says Imports Hurt Steel Industry=20
The International Trade Commission ruled that foreign imports pose a seriou=
s threat to the domestic steel industry, paving the way for punitive sancti=
ons that are likely to raise steel prices and intensify trade tensions with=
Europe and Asia.=20
The independent U.S. agency has until mid-December to provide the White Hou=
se with a list of proposed remedies, which could include import quotas or h=
efty tariffs on foreign steel.=20
Beleaguered U.S. steelmakers applauded the decision.=20
President Bush, who instigated the ITC investigation, is expected to approv=
e the protective measures, though critics warn they could harm a weakened d=
omestic economy and complicate efforts to launch a new round of global trad=
e talks.=20
Evelyn Iritani=20
Shares of Enron Plummet Amid Losses=20
Enron Corp.'s stock was pummeled by investors following disclosures of loss=
es and shrinking shareholders' equity related to failed investments and a c=
omplicated hierarchy of limited partnerships used to shelter some Enron ass=
ets.=20
The stock slide was compounded by disclosure of a Securities and Exchange C=
ommission inquiry into two of the partnership arrangements and by Wall Stre=
et worries about future cash flow and credit problems that might be caused =
by the investment vehicles.=20
Two conference calls with analysts and investors failed to calm nerves, and=
several analysts lowered their recommendations on Enron.=20
Enron has reiterated that its finances are strong. And although analysts no=
te that Enron's core businesses remain sound, some analysts doubt that the =
usually taciturn company has revealed all of its problems.=20
To mollify investors, Enron replaced its chief financial officer, who until=
recently headed the two partnerships the SEC is eyeing.=20
Nancy Rivera Brooks=20
Pentagon OKs Northrop Bid for Newport News=20
Northrop Grumman Corp. was all but assured of winning the bid to acquire Ne=
wport News Shipbuilding Inc. as the Pentagon endorsed the deal and the Just=
ice Department, citing antitrust concerns, blocked a rival bid by General D=
ynamics Corp.=20
It marked a stunning turn of events for Northrop, which got the nod to acqu=
ire the Virginia builder of nuclear submarines and aircraft carriers despit=
e having been the underdog.=20
The Los Angeles-based defense contractor made an unsolicited offer for Newp=
ort News after the shipbuilder had inked a $2.1-billion deal with General D=
ynamics.=20
Separately, Northrop said third-quarter earnings fell 22% because of a larg=
e drop in pension fund investments.=20
Peter Pae=20
Hollywood Production Jobs Fall to 4-Year Low=20
Skittishness following the Sept. 11 terrorist attacks has exacerbated an al=
ready slow season in Hollywood, pushing employment in the movie, television=
and film industry to a four-year low in September, state statistics show.=
=20
Cutbacks and delayed projects by the major studios has trickled down throug=
h the industry, leading to a spate of layoffs at small companies that provi=
de equipment and services for the industry.=20
Meg James=20
Grammy Officials Urge Greene Settlement=20
High-ranking officials at the Grammy organization recommended a settlement =
of more than half a million dollars to resolve sexual assault and battery a=
llegations against the nonprofit group's chief executive, C. Michael Greene=
, Grammy sources said.=20
The proposed settlement, subject to approval by the group's board of direct=
ors, has ignited an internal revolt, with at least a dozen of the 41 truste=
es privately calling for Greene's firing, the sources said.=20
Greene declined to comment. Attorneys for the Grammy nonprofit group previo=
usly denied that Greene assaulted or had any sexual contact with Jill Geime=
r, the Grammy executive who has threatened to sue over Greene's alleged mis=
conduct.=20
Chuck Philips=20
EMI Ousts Record Label Executive Nancy Berry=20
British music conglomerate EMI Group sacked Nancy Berry, the vice chairwoma=
n of its worldwide Virgin Records division.=20
Berry's exit came a week after the London-based record company ousted its g=
lobal record chief, Ken Berry, who is Nancy Berry's former husband.=20
The shake-up follows a dispiriting period for EMI, including a disastrous s=
ales debut from pop icon Mariah Carey, who suffered a nervous breakdown mon=
ths after signing an $80-million contract with the company this year. Nancy=
Berry spearheaded the elaborate marketing campaign for Carey's album, "Gli=
tter," which has sold fewer than 400,000 copies since its Sept. 11 debut.=
=20
Jeff Leeds=20
Management Buyout of G&L Realty Approved=20
Stockholders of G&L Realty Corp. approved a management-led buyout of the re=
al estate investment trust despite a higher offer by a rival group and conc=
erns that the deal unfairly favors top executives.=20
The company's co-chairmen, Daniel Gottlieb and Steven Lebowitz, plan to tak=
e the small Beverly Hills-based company private after a majority of shareho=
lders backed their $12-a-share offer.=20
The management-led offer triggered a shareholder lawsuit this year that cla=
imed G&L's board breached its fiduciary duty=20
Jesus Sanchez=20
Internet Archive Turns Back Web Pages of Time=20
The nonprofit Internet Archive launched its so-called Wayback Machine, allo=
wing Web surfers to check out most Internet sites that have vanished and ol=
der versions of sites that are still around.=20
The San Francisco effort is the brainchild of Brewster Kahle, a millionaire=
technologist who wants to preserve the Internet's ephemera for generations=
to come.=20
Like many Internet pioneers, however, Kahle faces unfamiliar risks along wi=
th the opportunities: the archive might be the most massive violation of co=
pyright law since ownership rights over words came into being.=20
More than 10 billion pages are available at http://web.archive.org.=20
Joseph Menn=20
Job Cuts, Make-Over in Store for Sears=20
Sears, Roebuck & Co. is getting a new look, borrowing from competitors that=
have been biting into Sears bottom line.=20
In a bid the company says will increase operating income by $1 billion duri=
ng the next three years, Sears will look more like a mass merchant, with mo=
re self-serve areas and centralized checkouts.=20
As part of its financial realignment, Sears will cut 4,900 jobs in the next=
18 months.=20
The company's challenge, analysts say, is to offer something unique within =
its niche of serving middle-income consumers--an ever difficult proposition=
against innovative rivals such as Kohl's and Target.=20
Abigail Goldman
PHOTO: Newport News builds nuclear submarines and aircraft carriers.; ; PHO=
TOGRAPHER: Associated Press; PHOTO: Sears is cutting nearly 5,000 jobs and =
launching a new strategy.; ; PHOTOGRAPHER: Associated Press; PHOTO: The ree=
ling airline industry is expecting its problems to worsen.; ; PHOTOGRAPHER:=
Agence France-Presse; GRAPHIC: Dimming Power, Los Angeles Times;=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
BUSINESS
Ralph Bivins
Devon Energy makes building its own with major lease
RALPH BIVIN
Staff
10/28/2001
Houston Chronicle
2 STAR
10
(Copyright 2001)
HOUSTON is known as the "Energy Capital of the World." And a glance around =
the downtown skyline proves the nickname is appropriate. Houston skyscraper=
s bearing the names of Enron, Chevron, Exxon and Shell make significant con=
tributions to the view.=20
Now another name is being added to the downtown mix, enhancing the energy c=
apital image even further. The 36-story Two Allen Center has been renamed D=
evon Energy Tower.
Devon Energy has just signed a lease for 193,000 square feet of space, more=
than doubling its presence in the building, and as part of the deal, Devon=
gets to put its name on the structure.=20
The lease also gives Oklahoma City-based Devon the right to take more space=
in the 1 million-square-foot building, at 1212 Smith St.=20
Devon recently announced its plans to acquire Mitchell Energy & Development=
, but it will maintain Mitchell's offices in The Woodlands, said Klay Kimke=
r, manager of office administration for Devon.=20
Kevin Snodgrass and Tim Relyea of Cushman & Wakefield represented Devon in =
the transaction. Paul Frazier and Margaret Sigur negotiated the deal on beh=
alf of TrizecHahn Office Properties, the owner of the building.=20
TrizecHahn owns both the Allen Center and Cullen Center office complexes, a=
total of 6 million square feet of space in downtown. The TrizecHahn office=
space is nearly full right now, but Enron will be vacating large amounts o=
f space there next year when the nearby Enron building is complete.=20
Teamsters to build facilities=20
Teamsters Union officials are planning to build new headquarters facilities=
after the union sells its building on the Katy Freeway.=20
To replace the Katy Freeway building, the union expects to build two smalle=
r structures near Bush Intercontinental Airport to house different chapters=
, said A.W. Parker, secretary treasurer of Local 968.=20
Parker's group is expecting to build a 13,000-square-foot building at Ella =
Boulevard at Beltway 8.=20
Another Teamsters group has purchased 4.5 acres on Beltway 8 at Diplomatic =
Plaza Drive, in the World Houston Business Center. The land was purchased f=
rom the Licha Family Trust. Tony Patronella and Marc Drumwright, both of So=
uthwest Realty Advisors, handled the sale.=20
Chicago firm buying property=20
A Chicago real estate investment firm is on a quest to acquire suburban off=
ice buildings in Houston.=20
ML Capital Ventures has purchased two small office structures: the 71,736-s=
quare-foot building at 5500 Northwest Central Drive and the 66,338-square-f=
oot building at 5301 Hollister. The building on Northwest Central Drive is =
the headquarters of BJ Services energy company.=20
Mike Luecht, president of ML Capital, said his firm will acquire two additi=
onal Houston office buildings before the end of the year.=20
ML Capital, which has been in business for eight months, will exceed Luecht=
's initial plan to buy more than $22 million worth of suburban office space=
in Houston in the company's start-up phase.=20
Luecht said his firm was bullish on two types of real estate: buying wareho=
uses in Chicago and buying office buildings in suburban Houston. Houston's =
economy has been adding jobs and it is a promising market that is overlooke=
d by many investors, Luecht said. Many investors have been too slow to forg=
et the devastating meltdown of Houston realty market in the 1980s, Luecht s=
aid.=20
In its most recent deal, ML Ventures bought the 5500 Northwest Central buil=
ding in partnership with Avgeris & Associates of Chicago. Tom Bousquet of C=
B Richard Ellis brokered the deal.=20
Woodlands opens new section=20
Several $1 million home sites go up for sale this weekend as The Woodlands =
opens a new section of its Carlton Woods gated community.=20
The premium lots will be facing the new Jack Nicklaus Signature golf course=
.=20
Custom lots will range in price from $150,000 to $1 million and range in si=
ze from one-fifth of an acre to two-and-three-fourths acres.=20
The Carlton Woods community is the first gated community in The Woodlands a=
nd has been well received by upper-end home buyers, said Paul Lazzaro, vice=
president of marketing for The Woodlands.=20
Thirty-two homes are under construction in Carlton Woods and all of them ar=
e priced at more than $1 million.=20
A total of 208 lots have been sold in Carlton Woods, which opened about a y=
ear ago.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
INDIA PRESS: Enron Plans To Exit LNG Shipping JV
10/28/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW DELHI -(Dow Jones)- Enron Corp. (ENE) has decided to exit its Indian sh=
ipping joint venture, Greenfield Holding Co., the Financial Express reports=
, quoting the Press Trust of India news agency.=20
Enron's affiliate, Atlantic Commercial Inc., holds a 20% stake in Greenfiel=
d. Mitsui OSK Lines Ltd. (J.OSM) holds 60%, while India's state-owned Shipp=
ing Corp. of India (P.SPG) holds the remaining 20%, the report said.
"Atlantic Commercial has expressed a desire to its partners to exit...," th=
e PTI quoted a shipping industry source as saying.=20
Greenfield's liquefied natural gas carrier "Laxmi" would have brought gas f=
or Enron's Indian unit, Dabhol Power Co., the Financial Express reports.=20
Enron has a controlling 65% stake in the 2,184 megawatt Dabhol power projec=
t, located in the western Indian state of Maharashtra.=20
Newspaper Web site: http//www.financialexpress.com=20
-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dow=
jones.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business/Financial Desk; Section C
Enron Taps All Its Credit Lines To Buy Back $3.3 Billion of Debt
By FLOYD NORRIS
10/27/2001
The New York Times
Page 2, Column 5
c. 2001 New York Times Company
The Enron Corporation, trying to reassure investors that it has ample liqui=
dity, began to repurchase all its outstanding commercial paper yesterday, u=
sing $3.3 billion it borrowed from banks by depleting its lines of credit.=
=20
An Enron spokesman said that when the commercial paper repurchases are comp=
leted the company will retain more than $1 billion in cash.
The moves did not appear to reassure investors, as Enron's share price fell=
to another six-year low. Shares traded as low as $15.04 yesterday, before =
ending the day at $15.40, down 95 cents.=20
The move will raise the interest expense for the company, because banks nor=
mally charge more than companies have to pay in the commercial paper market=
, and because its outstanding debt will rise by the additional $1 billion.=
=20
Enron's debt is rated investment grade. But its bonds now trade below inves=
tment grade levels, although not so low that it appears investors fear an e=
arly default. But with the bonds trading so low, it is unlikely Enron will =
be able to sell more commercial paper.=20
Enron's stock has been plunging since Oct. 17, shortly after it disclosed t=
hat its third-quarter balance sheet, which has yet to be released, will sho=
w a $1.2 billion reduction in shareholder equity as a result of complicated=
transactions involving partnerships formerly controlled by Andrew Fastow, =
who was the company's chief financial officer until he was replaced on Wedn=
esday.=20
The stock has lost more than half its value since the earnings announcement=
, and the company has disclosed that the Securities and Exchange Commission=
has asked questions about its accounting practices.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
COMPANIES & FINANCE INTERNATIONAL - Enron's bond prices drop to warning lev=
els.
By ROBERT CLOW, SHEILA MCNULTY and JENNY WIGGINS.
10/27/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved
Enron, the Houston-based energy trading group, continued to pay a heavy pri=
ce for its lack of financial transparency yesterday as its bond prices plum=
meted.=20
Investor confidence in Enron has declined sharply since the company announc=
ed a $1.2bn reduction of shareholder equity stemming from a complex off-bal=
ance sheet structure. The Securities and Exchange Commission has also launc=
hed an informal investigation into the company's finances.
Enron's five-year bonds were trading yesterday at 77 cents in the dollar wi=
th a yield of 11.13 per cent, down from 83 cents on Thursday. Bond prices a=
t these levels normally suggest that investors expect a company to file for=
bankruptcy.=20
Late on Thursday, Enron announced that it would draw on its bank lines to b=
uy back its outstanding commercial paper after two ratings agencies put the=
company on negative watch.=20
Commercial paper financing, which normally has to be rolled every 90 days, =
is one of the first forms of financing to disappear in a crisis.=20
"What they want to do is assure their clients and other trading partners th=
at they are creditworthy and continue with business," said Robin West, chai=
rman of the Petroleum Finance Company, the industry consultants. "In a situ=
ation like this, cash is king."=20
Enron's biggest immediate business risk is that its major trading counterpa=
rties, such as Duke Energy and Reliant Resources, start asking it for more =
collateral, increasing the cost of its everyday business.=20
If Enron were downgraded to junk, the counterparties could do just that.=20
So far, credit rating analysts say, Enron's core business is holding up wel=
l. But their actions over the past few days acknowledge that the company co=
uld still be severely damaged by the scandal.=20
Enron has long faced criticism of its opaque financial reporting, but its m=
ost recent problems stem from the LJM private equity fund run by Andy Fasto=
w, the company's former chief financial officer.=20
Enron compensated its partners in this complex off-balance sheet structure =
by promising to give them Enron shares, if the value of private equity inve=
stments in The New Power Company, technology and other things fell below a =
certain level.=20
Those investments fell $1.2bn in value from the threshold level, which shou=
ld have triggered the issue of 62m shares if the deal had not been reversed=
.=20
The complex deal was designed to make sure Enron did not experience the sam=
e balance sheet volatility that JP Morgan Chase and others have suffered fr=
om marking their private equity investments to market.=20
(c) Copyright Financial Times Ltd. All rights reserved.=20
http://www.ft.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
SHORTS - Enron bond prices under pressure.
10/27/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved
Enron, the Houston-based energy trading giant, continued to pay the price f=
or financial opacity as its stock slumped to its lowest level since 1995 an=
d its five-year bonds traded at 77 cents in the dollar with a yield of 11.1=
3 per cent, down from 83 cents on Thursday. Bond prices at these levels nor=
mally suggest that investors expect a company to file for bankruptcy. Page =
10.=20
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Enron taps credit line; stock slides
10/27/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
HOUSTON (AP) - After Enron Corp. tapped into more than $3 billion in credit=
in an effort to boost confidence of investors and customers, stock prices =
dropped.=20
Enron Corp.'s stock price hit its lowest point in more than five years Frid=
ay. Shares fell 95 cents on Friday to $15.40, a level not seen since 1995, =
as analysts continued to muddle through a complicated series of bookkeeping=
issues revealed after the company's earnings announcement earlier this mon=
th.
The stock is down more than 50 percent in two weeks, and the company lost a=
lmost $14 billion in market value.=20
Late this week the company decided to convert $3 billion in revolving credi=
t it has through various banks into cash. The company put about $1.1 billio=
n in the bank in an effort to reassure business partners and investors of i=
ts liquidity and is using the $2.2 billion balance to begin an orderly repu=
rchase of a certain kind of short-term corporate IOU known as commercial pa=
per.=20
"Nothing spells confidence quite like cash, which is what we want investors=
to understand," said Enron spokesman Mark Palmer of the $1.1 billion banke=
d this week.=20
Palmer could neither confirm nor deny that the company is negotiating furth=
er lines of credit with banks but described such actions as "good managemen=
t decisions."=20
On Oct. 16 Enron's third-quarter earnings release drew renewed attention to=
an issue investors and analysts had previously been unhappy about: Then-Ch=
ief Financial Officer Andrew Fastow, with the Enron board's approval, had f=
ormed and run two investment partnerships that could have created a conflic=
t of interest.=20
The partnerships, LJM Cayman and LJM2 Co-Investment, did complex financing =
and hedging deals with Enron.=20
Fastow had resigned from his roles in the partnerships months ago when Wall=
Street began to question whether he could watch out for the interests of E=
nron's shareholders and the investment partnership simultaneously. But last=
week when the company reported a $35 million loss related to ending its LJ=
M ties as well as a $1.2 billion reduction in shareholder equity, new quest=
ions began to arise.=20
The Securities and Exchange Commission's Division of Enforcement launched a=
n informal inquiry into the partnerships, and earlier this week Fastow was =
put on a leave of absence.=20
Reducing the company's debt exposure through commercial paper and putting i=
t back into more traditional financial tools, like a revolving line of cred=
it, could give great peace of mind to Enron's investors, said Anatol Feygin=
, an analyst with J.P. Morgan.=20
"It helps them shore up their support behind their energy trading business,=
which is really the core of their operations," Feygin told the Houston Chr=
onicle for Saturday's editions.=20
Carol Coale, an analyst with Prudential Securities, still sees the move as =
somewhat confusing.=20
"Just last week they were touting their unused lines of credit as a plus, b=
ut the fact that they tapped those now sends a strange, mixed message," she=
said. "Do they need the cash to keep the rating agencies off their back? I=
s it a gesture for customers? It first struck me as another one of these st=
rangely timed actions on the part of management."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business; Financial Desk
Enron Decline Continues
Bloomberg News
10/27/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company
HOUSTON -- Enron Corp. bonds and shares fell after the largest energy trade=
r tapped a $3-billion credit line because it has been shut out of the leadi=
ng market for low-interest, short-term loans.=20
The company's stock has fallen 54% in the last 14 days after investors ques=
tioned its transactions with affiliates run by Enron's former chief financi=
al officer. The shares fell 95 cents, or 5.8%, to $15.40 on the New York St=
ock Exchange.
Investors said Chief Executive Kenneth Lay has failed to reassure them that=
the company's credit rating won't be cut. Enron can no longer borrow in co=
mmercial paper markets, where short-term loans carry lower rates than banks=
offer.=20
"Do they have the financial flexibility they once had? No," said John Cassa=
dy, who helps manage $3 billion in bonds at Fifth Third Bancorp. "People ar=
e questioning the credibility of management."=20
The company will use its credit line to pay off $2.2 billion in commercial =
paper it has outstanding, Enron spokesman Mark Palmer said.=20
The price of Enron's 6.75% bonds, which mature in 2009, declined 11/2 point=
s to a bid of 84 cents on the dollar and an offer of 86 cents. At that pric=
e, the bonds, which carry a rating of BBB+, yield 9.53%.=20
Investors have grown concerned that the firm's credit rating will be cut af=
ter $1.01 billion in third-quarter losses from failed investments. Enron ne=
eds good credit to raise cash daily to keep trading partners from demanding=
collateral and to settle transactions.=20
Enron's decision to tap its credit line was "a smart financial move," said =
Stephen Moore of Moody's Investors Service. "It took away the hassle and ti=
me-consuming nature of rolling commercial paper and insured access to capit=
al."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
BUSINESS
Enron taps credit line; stock slides / Company says cash will boost confide=
nce
TOM FOWLER
Staff
10/27/2001
Houston Chronicle
3 STAR
1
(Copyright 2001)
Enron Corp.'s stock price hit its lowest point in more than five years Frid=
ay after it tapped into more than $3 billion in revolving credit in an effo=
rt to re-assure investors and customers.=20
Shares fell 95 cents on Friday to $15.40, a level not seen since 1995, as a=
nalysts continued to muddle through a complicated series of bookkeeping iss=
ues revealed after the company's earnings announcement earlier this month. =
The stock is down more than 50 percent in two weeks, and the company lost a=
lmost $14 billion in market value.
Late this week the company decided to convert $3 billion in revolving credi=
t it has through various banks into cash. The company put about $1.1 billio=
n in the bank in an effort to reassure business partners and investors of i=
ts liquidity and is using the $2.2 billion balance to begin an orderly repu=
rchase of a certain kind of short- term corporate IOU known as commercial p=
aper.=20
"Nothing spells confidence quite like cash, which is what we want investors=
to understand," said Enron spokesman Mark Palmer of the $1.1 billion banke=
d this week.=20
Palmer could neither confirm nor deny that the company is negotiating furth=
er lines of credit with banks but described such actions as "good managemen=
t decisions."=20
Enron's most recent woes began Oct. 16 when its third-quarter earnings rele=
ase drew renewed attention to an issue investors and analysts had previousl=
y been unhappy about: Then-Chief Financial Officer Andrew Fastow, with the =
Enron board's approval, had formed and run two investment partnerships that=
could have created a conflict of interest.=20
The partnerships, LJM Cayman and LJM2 Co-Investment, did complex financing =
and hedging deals with Enron and were formed originally as a way to offset =
risks associated with some of the company's newer businesses such as broadb=
and trading.=20
Fastow had resigned from his roles in the partnerships months ago when Wall=
Street began to question whether he could watch out for the interests of E=
nron's shareholders and the investment partnership simultaneously. But last=
week when the company reported a $35 million loss related to ending its LJ=
M ties as well as a $1.2 billion reduction in shareholder equity, new quest=
ions began to arise.=20
The Securities and Exchange Commission's Division of Enforcement launched a=
n informal inquiry into the partnerships, and earlier this week Fastow was =
put on a leave of absence.=20
Now Enron will begin repurchasing its commercial paper. This is a way for c=
ompanies to raise money over a short period at rates that are usually sligh=
tly better than what banks offer, and often with more flexible terms.=20
"To some extent, redeeming the commercial paper is at the expense of the ca=
pital markets, which look at it negatively," said Anatol Feygin, an analyst=
with J.P. Morgan.=20
But reducing the company's debt exposure through commercial paper and putti=
ng it back into more traditional financial tools, like a revolving line of =
credit, could give great peace of mind to Enron's investors, he said.=20
"It helps them shore up their support behind their energy trading business,=
which is really the core of their operations," Feygin said.=20
Carol Coale, an analyst with Prudential Securities, still sees the move as =
somewhat confusing.=20
"Just last week they were touting their unused lines of credit as a plus, b=
ut the fact that they tapped those now sends a strange, mixed message," she=
said. "Do they need the cash to keep the rating agencies off their back? I=
s it a gesture for customers? It first struck me as another one of these st=
rangely timed actions on the part of management."=20
Jeff Dietert, an analyst at Simmons & Co., said Enron management needs to c=
ontinue to make clear the issues that have investors confused and concerned=
.=20
In a worst-case scenario, investor fears could create a vicious cycle that =
continues to drive the stock down, which would force bond rating agencies t=
o consider downgrades of Enron. That could lead to lower credit ratings, wh=
ich would force Enron's energy trading partners to limit their exposure to =
the company and cut back on business with it.=20
"Thus, we see a big incentive for Enron to clarify the issues," Dietert wro=
te in a report Friday. "Our gut feel is that Enron can pull it off."=20
Feygin said he also believes the company will continue to do better in reve=
aling its financial dealings but thinks there may be more surprises in stor=
e.=20
For example, a Wall Street Journal article Friday discussed for the first t=
ime another business entity with ties to Enron known as Chewco. It was form=
ed in 1997 with about $400 million in financial backing to buy interests in=
unnamed Enron assets.=20
Chewco was run by Michael Kopper, a managing director of Enron's Global Equ=
ity Markets Group.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
BUSINESS
Enron says Microsoft breached contract
Staff
10/27/2001
Houston Chronicle
3 STAR
2
(Copyright 2001)
Enron Corp. filed suit against Microsoft Corp. in state district court in H=
ouston this week, claiming the software giant breached a contract over a ne=
w high-speed Internet service.=20
The companies entered into an agreement last June in which Enron would prov=
ide Internet bandwidth to Microsoft as it rolled out its MSN Broadband serv=
ice. Enron's broadband network would link MSN customers in over two dozen s=
tates, including Texas.
Qwest Communications is providing the Internet infrastructure in 14 other s=
tates for MSN.=20
On Oct. 23, Microsoft said that Enron would have breached the contract if i=
t didn't provide an operational bandwidth system by Oct. 25, according to B=
loomberg News. In the lawsuit, Enron claims Microsoft failed to deliver the=
ordering and billing system it needed to deliver its end of the project's =
first phase.=20
The lawsuit appears to be blocking the launch of the MSN service in all but=
the 14 states served by Qwest.=20
Enron officials declined to comment. A Microsoft spokesman said the company=
had not reviewed the filing but was "confident that we have upheld our agr=
eement with Enron."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Editorial Desk; Section A
Journal
How to Lose a War
By Frank Rich
10/27/2001
The New York Times
Page 19, Column 2
c. 2001 New York Times Company
Welcome back to Sept. 10.=20
The ''America Strikes Back'' optimism that surged after Sept. 11 has now be=
en stricken by the multitude of ways we're losing the war at home. The F.B.=
I. has proved more effective in waging turf battles against Rudy Giuliani t=
han waging war on terrorism. Of the more than 900 suspects arrested, exactl=
y zero have been criminally charged in the World Trade Center attack (thoug=
h one has died of natural causes, we're told, in a New Jersey jail cell). T=
he Bush team didn't fully recognize that a second attack on America had beg=
un until more than a week after the first casualty. The most highly trumpet=
ed breakthrough in the hunt for anthrax terrorists -- Tom Ridge's announcem=
ent that ''the site where the letters were mailed'' had been found in New J=
ersey -- proved a dead end. And now the president is posing with elementary=
-school children again.
Given that this is the administration that was touted as being run with C.E=
.O. clockwork, perhaps it should be added to the growing list of Things Tha=
t Have Changed Forever since Sept. 11. But let's not be so hasty. Not every=
thing changes that fast -- least of all Washington. The White House's home-=
front failures are not sudden, unpredictable products of wartime confusion =
but direct products of an ethos that has been in place since Jan. 20.=20
This is an administration that will let its special interests -- particular=
ly its high-rolling campaign contributors and its noisiest theocrats of the=
right -- have veto power over public safety, public health and economic pr=
udence in war, it turns out, no less than in peacetime. When anthrax struck=
, the administration's first impulse was not to secure as much Cipro as spe=
edily as possible to protect Americans, but to protect the right of pharmac=
eutical companies to profiteer. The White House's faith in tax cuts as a pa=
nacea for all national ills has led to such absurdities as this week's Hous=
e ''stimulus'' package showering $254 million on Enron, the reeling Houston=
energy company (now under S.E.C. investigation) that has served as a Bush =
campaign cash machine.=20
Airport security, which has been enhanced by at best cosmetic tweaks since =
Sept. 11, is also held hostage by campaign cash: As Salon has reported, Ser=
viceMaster, a supplier of the low-wage employees who ineptly man the gates,=
is another G.O.P. donor. Not that Republicans stand alone in putting fat c=
ats first. In a display of bipartisanship, Democrats -- lobbied by Linda Ha=
ll Daschle, the Senate majority leader's wife -- joined the administration =
in handing the airlines a $15 billion bailout that enforces no reduction in=
the salaries of the industry's C.E.O.'s even as they lay off tens of thous=
ands of their employees.=20
To see how the religious right has exerted its own distortions on homeland =
security, you also have to consider an administration pattern that goes bac=
k to its creation -- and one that explains the recent trials of poor Tom Ri=
dge.=20
Mr. Ridge is by all accounts a capable leader -- a successful governor of a=
large state (Pennsylvania) who won the Bronze Star for heroism in Vietnam.=
A close friend of George W. Bush, he should have been in the administratio=
n from the get-go, and was widely rumored to be a candidate for various job=
s, including the vice presidency. But after being pilloried by the right be=
cause he supports abortion rights, he got zilch. Instead of Mr. Ridge, the =
administration signed on the pro-life John Ashcroft and Tommy Thompson -- w=
ho have brought us where we are today.=20
The farcical failures of these two cabinet secretaries are not merely those=
of public relations -- though Mr. Thompson often comes across as a Chamber=
of Commerce glad-hander who doesn't know his pants are on fire, and Mr. As=
hcroft often shakes as if he's not just seen great Caesar's ghost but perha=
ps John Mitchell's as well. Both have a history of letting politics overrid=
e public policy that dates to the start of the administration. They've seen=
no reason to reverse their partisan priorities even at a time when the pat=
riotic duty of effectively fighting terror should be their No. 1 concern.=
=20
Pre-Sept. 11, Mr. Thompson, in defiance of science, heartily lent his credi=
bility to the Bush administration's stem cell ''compromise'' by going along=
with its overstatement of the viability and diversity of the stem cell lin=
es it would deliver to researchers. Post-Sept. 11, he destroyed his credibi=
lity by understating the severity of the anthrax threat, also in defiance o=
f science. Now he maintains that the $1.5 billion the administration is req=
uesting to plug the many holes in our public health system -- almost all of=
it earmarked for stockpiling pharmaceuticals, not shoring up local hospita=
ls -- is adequate for fighting bioterrorism. This, too, is in defiance of a=
ll expert estimates, including that of the one physician in the Senate, the=
Republican Bill Frist.=20
It should also be on Mr. Thompson's conscience that for the first two weeks=
of the anthrax crisis he kept the federal government's house physician -- =
David Satcher, the surgeon general and a much-needed honest broker of publi=
c health -- locked away, presumably because Dr. Satcher, a Clinton appointe=
e, became persona non grata in the Bush administration for issuing a June r=
eport on teenage sexuality that angered the religious right. Only after Mr.=
Ridge arrived on the scene was the surgeon general liberated from the gula=
g.=20
As for Mr. Ashcroft, he has gone so far as to turn away firsthand informati=
on about domestic terrorism for political reasons. Planned Parenthood, whic=
h has been on the front lines of anthrax scares for years and has by grim n=
ecessity marshaled the medical and security expertise to combat them, has s=
ought a meeting with the attorney general since he took office but has neve=
r been granted one. This was true not only before Sept. 11 but, says Ann Gl=
azier, Planned Parenthood's director of security, remains true -- even thou=
gh her organization, long targeted by such home-grown Talibans as the Army =
of God, has a decade's worth of leads on ''the convergence of international=
and domestic terrorism.''=20
Ms. Glazier found the sight of Mr. Ashcroft and other federal Keystone Kops=
offering a $1 million reward for anthrax terrorists a laughable indication=
of how little grasp they have of the enemy. ''Religious extremists don't r=
espond to money,'' she points out. Such is the state of the F.B.I., she add=
s, that one agent told a clinic to hold onto a suspect letter for a couple =
of days ''because we have so many here we're afraid we're going to lose it'=
' (perhaps among the Timothy McVeigh documents).=20
If either the attorney general or the secretary of health and human service=
s inspired anything like the confidence that, say, Mayor Giuliani does, the=
re wouldn't have been a need to draft Mr. Ridge. Even so, he's mainly a P.R=
. gimmick -- a man who should have been in the administration in the first =
place reduced to serving as a fig leaf for lightweights. As director of hom=
eland security, he's allegedly charged with supervising nearly 50 governmen=
t agencies -- so far with roughly a dozen staff members. When asked to defi=
ne Mr. Ridge's responsibilities, Ari Fleischer said on Wednesday that it wa=
s ''a very busy coordination job,'' but so far Mr. Ridge is mainly sowing s=
till more confusion.=20
The one specific duty that he has claimed -- in an interview with Tom Broka=
w -- was that he'd be the one ''making the phone call'' to the president to=
shoot down any commercial airliner turned into a flying bomb by hijackers.=
That presumably comes as news to Donald Rumsfeld, who made no provision fo=
r any homeland security czar in the Air Force chain of command he publicly =
codified days after Mr. Ridge's appointment.=20
Since the administration tightly metes out the news from Afghanistan, we ca=
n only hope that the war there is being executed more effectively than the =
war here -- even as Mr. Rumsfeld and his generals now tell us that the Tali=
ban, once expected to implode in days, are proving Viet-Cong-like in their =
intractability. The Wall Street Journal also reported this week that ''inst=
ead of a thankful Afghan population, popular support for the Taliban appear=
s to be solidifying and anger with the U.S. growing.''=20
Maybe we're losing that battle for Afghan hearts and minds in part because =
the Bush State Department appointee in charge of the propaganda effort is a=
C.E.O. (from Madison Avenue) chosen not for her expertise in policy or pol=
itics but for her salesmanship on behalf of domestic products like Head & S=
houlders shampoo. If we can't effectively fight anthrax, I guess it's reass=
uring to know we can always win the war on dandruff.
Drawing=20
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
City - Enron directors cash in shares.
By Simon English.
10/27/2001
The Daily Telegraph
P31
(c) Telegraph Group Limited, London, 2001
LEADING executives at Enron, the troubled US energy giant, cashed in shares=
worth more than $100m ( #70m) this year in the run-up to a financial crunc=
h that has left the company's credibility in ruins.=20
Research by Thomson Financial shows that Kenneth Lay, chief executive, sold=
about 400,000 shares this year, netting him more than $25m. He still held =
2.8m shares until July.
Other executives made similar sales, a revelation likely to anger investors=
who have seen the shares fall from $83 at the start of the year to $45 by =
July. They halved again this week and fell to below $16 yesterday. Enron de=
clined to comment on the share sales.=20
Mr Lay said in a statement that he is seeking to "dispel uncertainty in the=
financial community" by drawing on lines of credit to restore faith in Enr=
on's financial strength. Enron will pay off debts of $2.2 billion and keep =
another $800,000 in cash. He said: "We know we have our work cut out for us=
if we are to rebuild our credibility with the investment community."=20
The company is facing an inquiry by the Securities & Exchange Commission in=
to partnerships managed by Andrew Fastow, former chief financial officer.=
=20
Mr Fastow was ousted on Wednesday night as part of the company's moves to r=
estore confidence, though Enron insists he has done nothing wrong.=20
Enron lost $1 billion in the third quarter on what it has called "failed in=
vestments".
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
INDIA: Lenders to meet over Enron's Dabhol on Nov 3.
10/27/2001
Reuters English News Service
(C) Reuters Limited 2001.
BOMBAY, Oct 27 (Reuters) - Lenders to power plant in India majority owned b=
y Enron Corp have called a meeting next week in London to discuss ways of r=
eviving the beleaguered project, a banking source said on Saturday.=20
They will examine offers that two Indian companies have put forward for buy=
ing the U.S. energy giant's 65 percent stake, and those of two other U.S. f=
irms, in Dabhol Power Company (DPC), which is building the controversial pr=
oject, the source told Reuters.
The meeting of lenders, who include multinational banks such as Citibank an=
d Bank of America , will be held on November 3, the source added.=20
At stake is not just the fate of the $2.9 billion, 2,184 MW project, which =
is India's largest foreign direct investment, but also the over $600 millio=
n investment of Enron, General Electric Co and Bechtel.=20
All three companies are founders of DPC, which in 1995 got permission from =
India's Maharashtra state government to set up the plant on its coast.=20
The plant's first phase of 740 MW was completed in 1999, but work on the se=
cond phase of 1,444 MW, which is 97 percent complete, was abruptly stopped =
in June this year following a blazing row with cash-strapped state utility =
MSEB.=20
MSEB, which agreed in 1995 to take the plant's entire output, said it can n=
o longer do so because Dabhol's power is too costly.=20
Dabhol, in turn, accused MSEB of defaulting on its monthly payments and ser=
ved a preliminary notice to terminate the power purchase contract.=20
Under this notice, both companies are given six months time to settle the m=
atter through negotiations. If talks fail, Dabhol has the right to issue a =
final termination notice and take the matter to arbitration in London. That=
six month period expires on November 19.=20
Houston-based Enron, which owns 65 percent of Dabhol, further announced tha=
t it intends to exit the project and offered to sell its equity to the Indi=
an government.=20
TIME RUNNING OUT=20
The Business Standard newspaper reported that next week's meeting would als=
o discuss a request by Dabhol to finally terminate the contract after Novem=
ber 19.=20
"It is one of the items on the agenda," the paper quoted a senior banker as=
saying.=20
The paper said once Dabhol serves the final notice, the matter proceeds to =
arbitration, which would not help India.=20
"The widespread view among the government and lenders is that in such a sit=
uation DPC will win hands down," the paper added.=20
A Dabhol spokesman could not be contacted immediately.=20
The source said the meeting would review the progress made in resolving the=
dispute so far.=20
The Indian government has not responded to Enron's offer to buy its equity,=
but two Indian companies, BSES Ltd and Tata Power Ltd , have shown interes=
t.=20
They have agreed to take over the project if the cost is reduced, and if th=
e founders agree to sell their stake at a discount.=20
Local business daily, the Economic Times reported on Friday that Tata Power=
and BSES are willing to pay the founders $450-$600 million for the 85 perc=
ent stake held by Enron, GE and Bechtel.=20
Enron has rejected the offer and is not ready to settle for anything less t=
han $1 billion, the paper added.=20
Officials of Tata Power and BSES were not immediately available for comment=
.=20
($1=3D48.00 Indian rupees).
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
Business
Enron sues Microsoft for breach of contract ; Move could block high-speed s=
ervice
The Associated Press,Bloomberg News
10/27/2001
The Seattle Times
Fourth
E4
(Copyright 2001)
HOUSTON -- Enron has sued Microsoft, alleging it breached a contract for br=
oadband services, in a move that could temporarily block the largest softwa=
re company's MSN high-speed Internet service in some U.S. regions.=20
Microsoft said the dispute temporarily blocks the company from providing th=
e high-speed service in areas where Enron provides broadband access, leavin=
g MSN fully operational only in the 14 states -- including Washington -- wh=
ere Qwest Communications International operates, said Bob Visse, director o=
f marketing for MSN.
Enron's lawsuit was filed Thursday, the same day Microsoft had planned to o=
ffer fast Internet access in 45 cities to give it access to potential custo=
mers in 29 million homes. Microsoft, the No. 2 U.S. Internet provider, is m=
aking a push to win customers from AOL Time Warner.=20
"We are trying to resolve the issues with Enron, as quickly as possible and=
at the same time we are evaluating other providers," Visse said.=20
Enron spokeswoman Karen Denne declined to comment on the lawsuit, citing co=
mpany policy on pending litigation. Enron, based in Houston, is the largest=
energy trader.=20
Enron in June signed an agreement with Microsoft to provide bandwidth for M=
SN Internet service. Under the agreement, Enron isn't required to deliver o=
perational broadband services if Microsoft hasn't first provided a billing =
and ordering system, Dow Jones news wire reported.=20
Enron claims in its lawsuit that Microsoft failed to deliver the ordering a=
nd billing system required in the initial phase of the deal, Dow reported.=
=20
Alternative browser-users denied Microsoft entry=20
NEW YORK -- Microsoft's premier Web portal, MSN.com, denied entry to millio=
ns of people who use alternative browser software such as Opera and told th=
em to get Microsoft's products instead.=20
The decision led to complaints from the small but loyal Opera community tha=
t Microsoft was abusing its status as the Internet's browser leader. Micros=
oft later backed off and said yesterday that it would support the other bro=
wsers after all.=20
Browser products affected by the shutout, which was triggered by a face-lif=
t of the MSN.com Web site, included Opera, Mozilla and Amaya, said Kevin Re=
ichard, editorial manager for Internet.com's BrowserWatch site.=20
Mike Pettit, president of ProComp, an anti-Microsoft group, urged state and=
federal investigators to look into the matter as part of its lawsuit accus=
ing Microsoft of anti-competitive practices.=20
-- The Associated Press=20
MicrosoftSF to shut down; Sony will run retail store=20
SAN FRANCISCO -- Sony will take over a retail store it manages with Microso=
ft next month, when the biggest software maker's Xbox goes up against Sony'=
s PlayStation 2 in a contest for control of the $20 billion video-game mark=
et, a Sony spokeswoman said.=20
The two companies agreed to shut down MicrosoftSF, a retail outlet in Sony'=
s San Francisco Metreon entertainment complex. It will be replaced with a D=
igital Solutions electronics store run by Sony on Thursday, Metreon spokesw=
oman Kirsten Maynard said.=20
In April 1998, the companies said they would open the store that displays a=
nd sells Microsoft products alongside Sony electronics that run the softwar=
e. In March 2000, Microsoft announced the Xbox, a game console with an adva=
nced-graphics chip that goes on sale Nov. 15.=20
"A lot has changed with both companies," Maynard said. "It sort of became n=
ot-a-fit anymore."=20
Sony Metreon won't carry the Xbox or Game Cube, a new video console from Ni=
ntendo that goes on sale Nov. 19, she said. Officials at Microsoft couldn't=
be reached for comment on the shutdown.=20
-- Bloomberg News=20
Copyright [copyright] Seattle Times Company, All Rights Reserved. You must =
get permission before you reproduce any part of this material.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09
| 6,201 |
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arnold-j/inbox/55.
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,
Do you know who the headhunter was that called on Maggi to do the El Paso thing?
| 6,202 |
||
arnold-j/inbox/56.
|
,
WASHINGTON, Oct 29 (Reuters) - Federal futures regulators on Monday accused two former Coastal Corp. <CGP.N> vice presidents with fraud in an illegal trading scheme in 1996.
A complaint filed by the Commodity Futures Trading Commission accused Clay Krhovjakand Paul Cochran with defrauding Coastal, which merged with El Paso Corp. <EPG.N> earlier this year.
Over a five-month period in 1996, the two allegedly shifted $89,228 from profitable Coastal trades to accounts controlled by other, unnamed participants,the CFTC said in a complaint filed as an internal administrative complaint.
The scheme "ensured Cochran, Krhovjakand other participants risk-free personal profits," the CFTC said.
The two
| 6,203 |
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arnold-j/inbox/57.
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nov nymex ,
Our group has been selling NOV to hedge our short basis position. Our phys fixed priced liquidity this morning put us in a longer nov nymex position. We have sold 872 since 11:00 am.
Grigsby
| 6,204 |
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arnold-j/inbox/58.
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Enron Mentions ,
USA: Enron shares in stay in doldrums after downgrade.
Reuters English News Service, 10/29/01
USA: US companies' credit quality to worsen-Moody's.
Reuters English News Service, 10/29/01
Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
Bloomberg, 10/29/01
USA: Enron shares drop despite further triage attempts.
Reuters English News Service, 10/29/01
USA: Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
USA: UPDATE 1-Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
POWER POINTS:Enron May Have To Rethink Asset-Light Focus
Dow Jones Energy Service, 10/29/01
OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's
AFX News, 10/29/01
USA: Moody's cuts Enron to 2 notches above "junk".
Reuters English News Service, 10/29/01
UK: Europe energy firms wary of Enron on credit worries.
Reuters English News Service, 10/29/01
BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
Dow Jones Energy Service, 10/29/01
USA: Enron shares in stay in doldrums after downgrade.
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 29 (Reuters) - Enron Corp.'s share price hovered above seven-year lows touched in earlier trade Monday after Moody's Investor Service cut the credit status of its senior unsecured debt of North America's largest energy trader to two ratings above junk status.
Enron, the largest electricity and natural gas trader in North America, also on Monday said it was in talks with banks to expand its credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron shares were down $1.40, or 9.03 percent, to $14.10 on the New York Stock Exchange, after earlier in the session trading below $14 for the first time since December 1994.
Moody's also warned that it could cut the debt rating again, now downgraded to Baa2, as well as its rating for the Enron's commercial paper.
Enron's credit-worthiness will have a direct affect on its day-to-day trading operations and its trading partners' perception of making good on trades. With a credit rating hovering above junk status, the cost of doing business will soar as trading partners look for increased collateral to back trades.
Last week Enron shares lost almost $14 billion in market value as a series of piecemeal disclosures about the company's involvement in complex partnerships began to trickle out.
Investors have fled Enron's stock in droves following disclosures that the company did off-the-balance sheet transactions with two limited partnerships run by former chief financial officer Andrew Fastow in deals the U.S. Securities and Exchange Commission is now looking into for possible conflict of interest.
Enron compensated its partners in this off-balance sheet structure with the promise of Enron shares, if the value of private investments in several of its units fell below a certain level.
Many industry observers see Enron's request for additional credit, after the company tapped its banks for $3.3 billion last week, as a sign a weakness.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carol Levenson, an analyst with independent research firm gimmecredit.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: US companies' credit quality to worsen-Moody's.
By Jonathan Stempel
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 29 (Reuters) - U.S. corporate credit quality is likely to grow much worse before it gets better, a leading credit rating agency said in a report issued on Monday.
Moody's Investors Service said that in the third quarter, it put on review for downgrade its credit ratings for 122 U.S. companies. At the same time, it put on review for upgrade its ratings for just 22 companies.
That 5.5-to-1 ratio is far greater than the 1.3-to-1 ratio in the second quarter.
In dollar terms, the situation looks more dire. Moody's warned it may downgrade $543 billion of debt, dwarfing the $66 billion Moody's said it may upgrade by 8.2-to-1.
"Particularly in light of September 11, the fourth quarter will be particularly weak for credit rating changes," said John Puchalla, Moody's senior economist. "A wide excess of rating reviews for downgrade over upgrades in the third quarter suggests credit deterioration will persist at least into early next year."
Rating reviews are significant because, unlike actual rating changes, they are not a "lagging" indicator, and suggest the future direction of corporate credit. Moody's normally wraps up its reviews within three months.
U.S. corporate credit quality is falling for many reasons. These include the weakening U.S. economy, an inability of marginal companies to raise cash, debt-financed merger activity and fallout from the Sept. 11 attacks on such industries as airlines, insurance, and travel.
For example, Moody's in July warned it may cut Comcast Corp.'s ratings after the Philadelphia-based company bid $44.5 billion for AT&T Corp.'s cable TV operations.
Then last month, Moody's warned it may cut Chicago-based Boeing Co.'s ratings because of the attacks' potential impact on demand for commercial airplanes.
In the third quarter, Moody's warned it may cut its ratings of 54 speculative-grade, or "junk"-rated, companies, and raise the ratings of just 11. For investment-grade companies, the gap was even more yawning: 68-to-11.
And in the fourth quarter? Through Friday, Moody's warned it may downgrade 47 companies and raise a mere four. On Monday, it downgraded embattled energy trading giant Enron Corp., and put all of its ratings on review for another downgrade.
Puchalla, however, said the decline could slow next year, in part because interest rates are low and companies are managing their balance sheets more conservatively.
"Lower borrowing costs and slowing debt growth should reduce debt servicing costs, and fiscal stimulus from the federal government should boost business revenues," he said. "That is a positive for credit quality."
The third quarter was the 14th in a row when corporate rating downgrades outpaced upgrades. The record is 19 quarters, set between 1988 and 1993.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
2001-10-29 12:16 (New York)
Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
(Updates with analyst comment in fifth paragraph.)
Houston, Oct. 29 (Bloomberg) -- Enron Corp., which can't get
low-interest, short-term loans, faces skeptical lenders who will
demand increasingly harsher terms as the largest energy trader
tries to get cash in the bank, credit analysts said.
``Anyone providing new funding is going to be nervous,'' said
Sean Egan, managing director at Egan-Jones Ratings Co. ``It's
likely that lenders are going to demand collateral.''
Enron is trying to get $1 billion to $2 billion in loans from
Citigroup Inc., J.P. Morgan Chase & Co. and other banks to calm
investors after a 52 percent drop in the company's stock since
Oct. 17, the Wall Street Journal reported. The company needs cash
every day to settle commodities transactions and to keep trading
partners.
The company on Thursday tapped $3.3 billion in bank credit
lines last week to pay off about $2 billion in commercial paper,
or short-term corporate loans. A week ago, the Enron said the U.S.
Securities and Exchange Commission had began an inquiry into
related-party transactions. They cost the company $35 million and
$1.2 billion in lost shareholder equity.
``Banks are in the driver's seat, and Enron is a little
desperate,'' said Peter Petas, a debt analyst at CreditSights Inc.
``I think their interest rates for loans would go up.''
Sells Assets for Cash
Companies in Enron's situation often agree to other bank
terms in order to secure loans, Petas said. Those can include
agreeing to use proceeds from selling assets to pay debt and
putting up assets as collateral.
Enron is attempting to sell assets to raise cash. Two related
partnerships, Osprey and Marlin, depend on selling power plants
and similar assets to repay $3.3 billion borrowed to buy the
plants. Enron may have to pay any difference between the debt and
sales proceeds.
The company plans to complete the $2.9 billion sale of
Portland General Electric, an Oregon utility, to Northwest Natural
Gas Co. next year.
Shares of Houston-based Enron fell $1.30, or 8.4 percent, to
$14.10 in midday trading. Earlier, they touched $13.55, down 12
percent. The company's credit rating was cut by Moody's Investors
Service after it wrote down the value of its assets.
The stock had tumbled 80 percent in the past 12 months.
--Russell Hubbard in the Princeton newsroom, 609-750-4651
USA: Enron shares drop despite further triage attempts.
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 29 (Reuters) - Enron shares slipped to a new six-year low in early trade as North America's largest natural gas and electricity trader said it was talking to banks about tapping additional credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron's shares were trading down 90 cents, or 5.8 percent, to $14.60 in early morning trade on the New York Stock Exchange. Shares crashed through $15, a low not seen since February 1995.
Last week, Enron shed almost $14 billion in market value as its stock price tumbled more than half since last week, when a series of piecemeal disclosures about its involvement in complex partnerships began to trickle out.
However, many industry observers see Enron's request for an additional credit after tapping its banks for $3.3 billion last week after as a sign a weakness not of strength.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carole Levenson, research analyst with independent research firm gimmecredit.com.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Enron says in talks with banks for new credit line.
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a move to shore up investor confidence.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on a new credit line.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
Enron shares sank 50 cents, or 3.2 percent, to $15 in early morning trade on the New York Stock Exchange. ((David Howard Sinkman, New York Newsdesk 646-223-6094)).
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: UPDATE 1-Enron says in talks with banks for new credit line.
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a new move to shore up investor confidence after it tapped about $3 billion in credit last week, and to stop a plunge in the company's stock that set new six-year lows.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on the new credit line.
Enron shares crashed through a psychological barrier of $15 a share, shedding $1.66, or 10.65 percent, to $13.85 in early morning trade on the New York Stock Exchange. The stock has lost more than half of its value in the past two weeks, losing more than $14 billion in market capitalization.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer in Houston.
Enron shares have tumbled since the company reported its first-quarterly loss in more than four years on Oct. 16. The company also wrote down $1.2 billion in equity, including transactions with partnerships formerly run by its chief financial officer who was forced to step down from Enron last week.
The sell-off was sparked by investor concern about the transparency of the transactions, which the Securities and Exchange Commission is examining. Enron last week replaced CFO Andrew Fastow as part of efforts to restore investor confidence.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
"Clearly, both the stock and bond market view Enron as being in dire straits," said independent research firm Gimme Credit analyst Carol Levenson.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead it's an act of desperation."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
POWER POINTS:Enron May Have To Rethink Asset-Light Focus
By Mark Golden
10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
A Dow Jones Newswires Column
NEW YORK -(Dow Jones)- On the face of things, it's hard to understand the stock market's headspinning reaction to Enron Corp.'s (ENE) revelation of some bad news in recent weeks.
Why the talk of a "death spiral" for North America's premier energy trading company? The stock price of Cisco Systems Inc. (CSCO), for example, saw an almost identical drop over a similar 12-month period. Nobody questioned the viability of Cisco.
The difference is that over the past few years, Enron has redefined itself as a company that runs on financial and intellectual muscle - not hard assets - and that focus is getting the company into trouble now that its credibility is in question.
If you're buying network components, you can probably stand some ambiguity in the finances of your supplier. After all, you're buying something you can touch. But if you're buying power or gas, what you're really buying is a commitment to deliver. If your supplier doesn't come through when the market gets tough, you're left totally exposed. In Enron's energy trading business, then, credibility at every level is critical.
For now, Enron looks to be more than viable. But the company's asset-light strategy might not be. Gross profits from trading have shrunk to 1.65% in the third quarter from 5.26% in the first quarter of 1998. Meanwhile, asset-heavy energy companies like Mirant Corp. (MIR) and Calpine Corp. (CPN) successfully use trading to optimize the performance of power plants and other infrastructure.
Two weeks ago, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. That didn't send investors running, however. In fact, its stock price rose a bit on the news.
What hurt was the disclosure that Enron had reduced its net assets, or "shareholders' equity," by $1.2 billion as a consequence of unwinding positions in partnerships headed by former Chief Financial Officer Andrew Fastow. That, along with warnings of possible downgrades by credit ratings agencies and an inquiry by the Securities & Exchange Commission produced a $15.6 billion drop in Enron's market value.
On Monday, Moody's Investors Service followed through by downgrading its rating on Enron's senior, unsecured long-term debt to Baa2 from Baa1, leaving it two steps above junk-bond levels. The agency kept Enron's ratings on watch for further downgrade.
Long-Running Concerns
A 50% hit to shareholder value still seems like an overreaction to a 10% reduction in shareholders' equity. The stock price reflects the expectation of additional losses to be reported and Enron's loss of credibility. Enron executives in a conference call Tuesday insisted that the worst was behind them, but few on the call believed that.
For some analysts, Enron's revelations only fed long-running concerns about the company's lack of financial disclosure.
Cary Wasden, managing partner of Reed Wasden Research, has had a "sell" recommendation on Enron since March. Unlike the analysts at big Wall Street firms, Wasden isn't in the business of selling stock. His firm isn't involved in brokerage and isn't a hedge fund. Wasden gets paid for his research, and the company doesn't invest in the securities it covers.
A main Wasden concern with Enron is that the company has regularly included the proceeds from one-time sale of physical assets in operating income. His belief is that Enron has dramatically inflated its earnings for the past couple of years - a concern to which an Enron spokeswoman couldn't immediately respond.
"Don't believe by any means this is the end of the story," Wasden said.
Wall Street sell-side analysts have largely kept Enron as a "buy" or "strong buy" as the stock fell from $90 to $20. But even they are expressing concerns about the quality of Enron's reporting.
For now, the plunge in the price of Enron's shares and bonds, which last week started trading like junk-rated debt, hasn't hurt its credit standing with energy trading partners.
"We haven't changed our thinking regarding Enron or our policies and practices. We're watching it, and so is everybody else, but they are a solid company," Reliant Energy Inc. (REI) spokesman Richard Wheatley said in a typical reaction. "This is unfortunately a feeding frenzy regarding some dealings that I'm sure Enron will be able to come out of at some point."
Keeping Talent A Challenge
Enron is a big company - far too big to ignore. But continued deterioration in the price of its shares and bonds could lead counterparties to restrict their traders' transactions with Enron. If the company's investment-grade bonds continue to trade near levels traditionally considered distressed, risk managers won't be able to ignore it, whatever else Moody's does.
Assuming that doesn't happen, Enron still faces a tough road ahead. Like all companies, Enron is the combination of capital and talent. For financial companies, talent is the more important ingredient, and Enron has been suffering damage to its talent for some time.
New Chief Executive Jeff Skilling left in August, and a handful of his key lieutenants left earlier in the year. The losses can be expected to continue. Much of the top management cashed out when the company's stock price was high and moved on. Now middle management on down is angry and anxious to move on, if they haven't already.
Over the years, Enron has compensated its very talented labor with stock options to make up for base pay considered low by the industry. Those options are now nearly worthless. If Enron's debt-service costs rise, the company could struggle to attract the talent needed to generate income in its core business of trading energy in North America.
Some analysts would like to see more turnover at the very top. When Skilling left, nobody believed Skilling or Chairman Kenneth Lay's assurances that it was for "personal reasons." When CFO Fastow was forced out of his position last week, Lay said, "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."
That's putting words in Wall Street analysts' mouths. Who thought scapegoating Fastow was really the answer?
"I don't know anybody who said that," Wasden said. "What did the CFO do, what did Skilling do, that Ken Lay wasn't part of?"
Real change will have to come from without, Wasden said.
"Enron has been a cult, more than a company," he said. "Recruiting from within does nothing to change the company, it just changes the disciples. Enron needs to pull some top talent from outside."
Nevertheless, Wasden thinks Enron's stock has reached its natural floor and, if the company starts disclosing how it really makes money, it can recover over time.
"There are a lot of earnings that can be wrung out of really strong operating assets, like pipelines and power plants," he said.
That means paying more attention to the assets that Enron has spent the past few years denigrating. Given the bind Enron is in, Lay won't have much choice. Enron will survive, but it won't be the same company at all.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's
10/29/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
(Moody's corrected its stance on Enron ratings to a downgrade)
NEW YORK (AFX) - Moody's Investors Service said it has lowered the senior unsecured long-term debt ratings of Enron Corp from Baa1 to Baa2 following a deterioration in Enron's financial flexibility since the company announced significant writedowns as well as equity charges in previously undisclosed partnership investments.
The long-term debt ratings remain on review for further downgrade, Moody's said.
Moody's also placed the company's Prime-2 rating for commercial paper on review for downgrade.
Moody's initially placed Enron's long-term debt ratings on review on Oct 16. The write-downs and equity charges led to a substantial loss in investor confidence that has led to a more than halving of Enron's share price and difficulties in rolling over commercial paper, according to Moody's.
In response to these events, Moody's said Enron has shored up its near-term liquidity position by drawing down on all of its committed revolving credit facilities and buying back its outstanding commercial paper, leaving the company with a net cash position of approximately 1.2 bln usd.
Moody's said it plans to focus on management's success in lining up further liquidity support and on their ability to retain credit availability from their major counterparties.
aw/gc For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Moody's cuts Enron to 2 notches above "junk".
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 29 (Reuters) - Moody's Investors Service on Monday cut embattled energy trading giant Enron Corp.'s senior unsecured debt rating to two notches above junk status, and warned it may cut that rating again, as well as its rating for Enron's commercial paper.
The rating agency cut Houston-based Enron's senior unsecured debt to "Baa2" from "Baa1," and said it may cut Enron's "Prime-2" commercial paper rating, which affects short-term debt. Its rating actions affect $13 billion.
Moody's said Enron is suffering from deteriorating financial flexibility since it announced big write-downs and equity charges from previously undisclosed partnership investments this month. This triggered "difficulties in rolling over commercial paper," Moody's said.
Enron, which has about $63.4 billion in energy assets, said on Monday it is talking with banks to get more credit, after last week drawing down $3 billion from a bank credit line to buy back its outstanding commercial paper.
Its shares traded Monday on the New York Stock Exchange at $13.75, down $1.75, or 11.3 percent. They have fallen 62 percent since Oct. 12, from $35.81.
Rating agency, Standard & Poor's, on Thursday revised its outlook for Enron's ratings to "negative" from "stable."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
UK: Europe energy firms wary of Enron on credit worries.
By Stuart Penson
10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.
LONDON, Oct 29 (Reuters) - Energy companies in Europe are shying away from trading with troubled U.S. energy group Enron amid concerns about the company's credit status, industry sources said on Monday.
Several large energy groups have frozen their dealings with Enron - one of Europe's biggest gas and power traders - as they hold urgent talks with the U.S. group about setting up new credit arrangements, the sources said.
"I think Enron's approach is to get the major counterparties back on board as quickly as possible and then hope the smaller ones will follow," said the head of risk management at one UK utility that halted its trade with Enron last week.
"They are talking with us about bank letters of credit," he said. "The people that are still trading with them are doing so on a very restrictive basis."
A spokesman for Enron's European headquarters in London headquarters declined to comment.
Reluctance to trade with Enron in Europe comes as the company tries to rebuild investor confidence after its stock hit five-year lows.
Triggering the slide was news last week the U.S. Securities and Exchange Commission is investigating huge losses relating to a private equity operation run by its former chief financial officer.
Houston-based Enron trades a large amount of its volume in the U.S. and Europe through its Internet EnronOnline system.
Last Friday the company said trade on EnronOnline was above average levels with more than 8,400 transactions at a notional value of approximately $4 billion.
Traders said Enron's plight could hit liquidity in European gas and power markets, where liberalisation has unleashed rapid growth in energy trading in the last couple of years.
One industry source cited a brokers list showing eight companies in the UK electricity market had put on hold their trading Enron, which is among the biggest five traders in the market.
In mainland Europe, where Enron has been a major driver of liquidity, potential counterparties are treading with care.
"We are avoiding them as counterparties - either by not trading with them or by using a 'sleeve' (a third party trader)," said a senior trader at one of Germany's big utilities, who declined to be named.
French traders said wariness about dealing with Enron had dampened liquidity although Enron was still in the market on Monday morning.
"Enron is a major player so counter parties are looking to see if there is a problem," said one French trader.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
By Michael Rieke
10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
A Dow Jones Newswires Column
HOUSTON -(Dow Jones)- Thanks to Enron Corp. (ENE), the broadband sector again looks like a place to make money.
But it won't be traders who will cash in on this new potential. It will be class-action attorneys. They're already lining up to sue Enron in at least five shareholder suits.
As of Oct. 25, two of lawsuits had been filed against Enron in federal court and three more in Texas state court. Most of them name as defendants Ken Lay, Enron's longtime chairman, former Chief Executive Jeff Skilling and Andrew Fastow, Enron's chief financial officer until he was put on leave of absence Oct. 25.
Still another suit, which isn't a class action suit, was filed naming as defendants members of Enron's board of directors.
All the lawsuits concentrate on private investment partnerships Enron set up, many of them managed by Fastow. Most of the suits contend that it was a conflict of interest to have the Fastow partnerships doing complicated hedging transactions with Enron.
The transactions named in the lawsuits involved billions of dollars of underperforming assets in broadband, water and other Enron investments.
Fastow operated on both sides of some of those transactions. As Enron's chief financial officer, he was being paid to manage the corporation's finances. As general partner of two LJM partnerships, he managed the counterparties to billions of dollars of trades with Enron. He shared in profits of those partnerships.
When investors began demanding information about the transactions, Enron's share price began to slide. With the heat on, Enron recently unwound the trades with the partnerships and booked $544 million related to losses from early termination of the deals, among other things.
That's when the class action attorneys went to work. So far, at least 14 law firms are representing the plaintiffs. Enron didn't respond to calls asking about the lawsuits.
Among the law firms representing plaintiffs is Milberg Weiss Bershad Hynes & Lerach, which put out a news release announcing its lawsuit. The release points out that the firm has been responsible for recovering more than $30 billion from class action lawsuits.
The lawsuits bring up questions about the bandwidth trading market. Some of the deals with the LJM partnerships run by Fastow "purportedly involved hedging transactions in the broadband market," according to Abrams and Franks v. Enron et al.
That could tie into questions that have lingered in the bandwidth market for months. Market skeptics have said Enron and other energy companies are the only ones trading bandwidth.
Enron has reported that it has been trading with a growing number of counterparties, a total of 120 in the second quarter of this year, according to Enron.
Now market watchers will want to know if any of Enron's trades were done with the LJM partnerships managed by Fastow.
They will also want to know how many bandwidth trades were done with Chewco Investments. That Houston company, according to a report in The Wall Street Journal, was managed by Michael Kopper and was set up in 1997 when Kopper was a managing director with Enron's Global Equity Markets Group. He left Enron earlier this year to work for partnerships run by Fastow.
Do the plaintiffs' attorneys know whether Enron was trading bandwidth with any of those investment partnerships?
"I think if is too early to tell," Thomas Bilek of Hoeffner & Bilek told Bandwidth Beat. "As you know, (information) is coming out in drabs and dribbles from Enron."
It could be several months before plaintiffs' attorneys get a chance to ask Enron officials those questions, Bilek said.
It's also too early to tell what potential damages plaintiffs could win, said Steven Schulman, an attorney with Milberg Weiss. "At this point, you can only talk about it in terms of (shareholder) losses, and the losses are in the billions."
Total losses will depend on the price each shareholder plaintiff paid for the stock and the price at which each shareholder later sold the stock.
Enron's share price topped out between $90 and $91 in the summer of last year. It set a 52-week low Oct. 26 at $15.04. That spread leaves plenty of room for losses.
Schulman told Bandwidth Beat that the record for losses in shareholder cases is $11 billion in a case involving Cendant Corp. (CD). Damages are usually a substantial portion of losses, Schulman said.
"Whether (the Enron case) is bigger or less, I couldn't opine," he said. "This is a big case, by any means."
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
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arnold-j/inbox/6.
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FW: LNG deal summaries ,
John,
Here are the deals that the LNG group are currently working on. We can discuss whenever you have time, also, if you want Eric Groves to come up to discuss let me know. Thanks.
John
-----Original Message-----
From: Groves, Eric
Sent: Wednesday, July 18, 2001 8:57 AM
To: Griffith, John
Subject: LNG deal summaries
John,
Some of this may require some expanation. Please let me know if you want me to come up and discuss with your crew.
Thanks,
Eric
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arnold-j/inbox/60.
|
Sleave ,
From enron's perspective:
Buy 1095 Jan 02 from williams, sell to koch
Buy 550 Feb02 from williams, sell to koch
buy 6/day cal 03 from williams, sell to koch
buy 1/day cal 5 from williams, sell to koch
buy 1/day cal 6 from williams, sell to koch
I will be in a meeting from 3-4:30 so if you can't get to it today I will just call you tommorrow to check it out
Thanks
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arnold-j/inbox/61.
|
Phone Numbers ,
Mine # is 918-573-5821
Brenden is 713-544-4214
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arnold-j/inbox/62.
|
FW: Top 50 Counterparties by Volume - US GAS as of 10-25-01 ,
Hi John,
Here is the information you were looking for. We are still working on the buy sell breakouts. For the buy/sell breakouts do you need it broken down by product type as well?
Savita
-----Original Message-----
From: Johnson, Adam
Sent: Monday, October 29, 2001 1:33 PM
To: Puthigai, Savita; Moorer, Torrey; Sweitzer, Tara; Denny, Jennifer
Subject: Top 50 Counterparties by Volume - US GAS as of 10-25-01
Adam Johnson
EnronOnline
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arnold-j/inbox/63.
|
,
tenn+3 200
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arnold-j/inbox/64.
|
TRV Notification: (NG - PROPT P/L - 10/29/2001) ,
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=10/29/2001>, published as of 10/29/2001 is now available for viewing on the website.
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arnold-j/inbox/65.
|
,
John:
Bank of Montreal would like to take Enron up on the offer you made this
afternoon to help balance our short swap exposure with your organization and
replace it with a third party Enron may have offsetting transactions with.
Per our conversation, to offset the contracts that we are short to Enron,
our position would allow us to accommodate the following transactions:
Buying five and a half (5.5) contracts a day December 2001 (Z01) natural gas
last day swaps from Enron and selling to a third party
Buying sixteen and a half (16.5) contracts a day January 2002 through
December 2002 (F02-Z02) natural gas last day swaps from Enron and selling to
a third party
Buying four (4) contracts a day April 2003 through October 2003 (J03-V03)
natural gas last day swaps from Enron and selling to a third party
Buying two (2) contracts a day January 2004 through December 2008 (F04-Z08)
natural gas last day swaps from Enron and selling to a third party
If you find an appropriate offsetting positions please contact me at
212-605-1475.
Thank you,
David DeVeny
Bank of Montreal
Commodity Derivatives Group
<FONT SIZE = 1>****************************************************************************
This e-mail and any attachments may contain confidential and privileged information. If you are not the intended recipient, please notify the sender immediately by return e-mail, delete this e-mail and destroy any copies. Any dissemination or use of this information by a person other than the intended recipient is unauthorized and may be illegal. Unless otherwise stated, opinions expressed in this e-mail are those of the author and are not endorsed by the author's employer.</FONT>
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arnold-j/inbox/66.
|
Expense Reports Awaiting Your Approval ,
The following reports have been waiting for your approval for more than 4 days. Please review.
Owner: Justin K Rostant
Report Name: JRostant 10/24/01
Days In Mgr. Queue: 5
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arnold-j/inbox/67.
|
Small world! ,
Hey John!
How are you?? I've been following the Enron story closely, which means I've
thought of you a lot recently. I hope things are going well, despite the
uncertainty.
I ran into someone from our Enron days today, which made me think of a funny
story. Do you remember when John Mee tried to eat 8 Big Macs and hurled
instead? John was talking to my boss, Chuck Clough, today, who he's known
since childhood and is a mentor of sorts. When he got off the phone, Chuck
told me who he was talking to and the name John Mee struck me as familiar.
I asked Chuck if he was a big kid who'd gone to Harvard and he said yes. So
I tell him the Big Mac story and Chuck picks up the phone and calls John to
ask him if that was him because if so, I knew him. Poor thing says "yeah,
that was me, but not one of my finer moments..." I could tell he was
embarrassed. I guess there are some things in life you just never live
down.
I also ran into some friends of yours in Bermuda last month. We shared a
cab to the airport and realized we had all been at Enron, though not at the
same time. I mentioned that I really loved the company, especially how
young it was and that I had a friend who joined right out of undergrad and
is now doing really well. They immediately said "John Arnold!" Shocked the
hell out of me, honestly. They were very funny in saying that I had made a
"bad trade" by marrying my husband instead of you. I told them I would keep
that in mind.... ;-} I would tell you their names, but I can't remember
off the top of my head. They both work for a weather trading firm in the
Northeast now, with Lynda Clemmons.
Well, gotta run to the gym - been putting it off as long as I could today.
I really do hope you're doing well. Please drop me a line when you aren't
trading up a storm...
Warm regards,
Heather
_______________________________
Heather Lockhart Robertson, Director
Clough Capital Partners, LP
260 Franklin Street, 19th Floor
Boston, MA 02110
P: 617-204-3409
F: 617-204-3434
E: [email protected]
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arnold-j/inbox/68.
|
Greetings ,
Hi John,
The events surrounding the Enron demise are quite disturbing not only to
me but to many of us over here. Our hearts go out to all the employees
who will not only loose their employment but also most, if not all, of
their savings. As you know, I've always thought a lot of you; not only
for your trading skills, but also as a person. You are one of the
largest and most influential traders in the market, yet do not have the
annoying ego so often found in traders of your stature. I'm absolutely
sure that you'll do well no matter where your career takes you. I just
wanted you to know that if there is ever anything I can do for you,
please don't hesitate to call. This is not a solicitation for
employment. This is from a person who always felt you treated me
honestly and fairly and if the occasion arises, would like to
reciprocate.
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arnold-j/inbox/69.
|
Messages ,
John:
Here are the messages on your voicemail.
11:30 PM 11/30/01 - Todd Apple ...pls call
1:24 PM 11/30/01 - Frank Giby/ Time in New York...wants to talk off the record 212-522-0040
4:32 PM - 12/3/01 - Lucinda called Mattress in and ready to be delivered 713-990-2400 or cell# 713-906-1200
4:01 PM - 12/4/01 - Lucinda called....mattress will be delivered at 4:00 on Wednesday 12/5/01
5:10 PM -12/4/01 - Eric Macada...he interviewed with you last month and wanted to keep touch with you in case there were possiblities in the future 212-737-8090
5:42 PM - 12/4/01 - Foster called and said backoffice tried to confirm 17 direct deals for Friday 11/30/01 and he doesn't have this recorded....he already spoke to Dutch and he is suppose to look into it.... please call him anyway.
7:16 PM - 12/4/01 Dawn Ray with Sidadel 312-696-2081 ...would not leave any messages
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arnold-j/inbox/7.
|
,
http://fundamentals.corp.enron.com/main.asp
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arnold-j/inbox/70.
|
Broker Quotes - PLEASE READ ,
John and Dutch -
This email is sent to discuss what is needed with respect to NYMEX quotes from the broker market. Simply put, we need quotes on every forward term for which we currently have positions. It seems that the best way to obtain relevant information would be to ask for the following:
1. Annual quotes (a quote for 2003, a quote for 2004, etc.)
2. Seasonal quotes (winter '03, summer '04, etc.)
In short, try to obtain pricing to match any positions which we currently have in the books. I know that this will be difficult to accomplish, but please do what you can. We need these quotes for every day starting with Nov 28 through today. We will continue to need daily updates for the immediate future.
Also, I am aware that our current position doesn't give us much stroke to ask for a lot of pricing data. However, this information is critical as it will be needed for calculation of termination values. Please do whatever you can to obtain as much data as possible. Additionally, we need to get quotes from as many different brokers as possible to help verify pricing.
Please let me know if the brokers are not accomodating your requests; we may need to ask John or Louise to place calls into the brokers to move this process along.
If you have any questions or comments, you can normally find me in the "war room" next to Louise's office. If I'm not there, please call me at (713) 927-3003 or at ext 53923.
Thanks,
Jay
|
credit <[email protected]>
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arnold-j/inbox/71.
|
Contact ,
I left a message earlier with your assistant. My contact information is
below, please touch base with me as soon as possible. I am working on a
project that is very pressing.
Lyndon A. Taylor
Principal
Heidrick & Struggles, Inc.
1221 McKinney, Suite 3050
Houston, Texas 77010
Office: (713) 751-3048
Fax: (713) 751-3018
Cell: (713) 303-3177
VM: (800) 964-5445
[email protected]
www.heidrick.com
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arnold-j/inbox/72.
|
re ,
john, i think it really really is to your benefit to speak to me asap . to
have a brief phone conversation. i called you a last week but you were off
the desk. not sure if you got the message. i have a sense of whats going on
there, its still worth calling. regards, things are looking rosy for you
dude.
212-933-2030
cell ph 917-374-6760
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arnold-j/inbox/73.
|
FW: re ,
> -----Original Message-----
> From: LaFontaine, Steve
> Sent: Tuesday, December 11, 2001 12:43 PM
> To: LaFontaine, Steve
> Subject: RE: re
>
> hey man-in the end good luck to whatever way you decide. youre a good guy
> in my book. when i left cargill it was intersting to see who in the
> industry would continue to talk to me w/out a big infrastructure backing
> me. you were one of them who did. some others did not. i wont forget that.
> i think this really would be a good fit for you but cant blame you for
> looking at the other option as well.
> if you go the other way-the primary advantage as i see it is you can
> trade alot of non correlated risks. i can tell you this is huge. trading
> oil and natgas has made me much bettr and much more consistent. so if yu
> go that way id recommend going somewher you can learn petroleum, metals,
> equities, grain etc rather than just feeling limited do to experience by
> trading natgas only. make sense? my opinion
> anywy-whatever yo do ill be glad to help anyway i can. hope youll be on
> the east coast for my sake
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arnold-j/inbox/74.
|
Wholesale Power and Gas Trading operation ,
8214 Colonial Oaks Lane
Spring, Texas 77379
December 13, 2001
Regarding: energy trading positions
To Kevin Presto, Harry Arora, and John Arnold:
I am writing to you to express my desire to be apart of the Wholesale Power and Gas Trading operation that will potentially be created with an entity that has a high credit rating. I have been working for Rogers Herndon in Enron Wholesale Services on the Options Desk. In this role I have modeled the power options that are embedded in the various deals done through Enron Energy Services with large industrial and commercial clients. In addition, I profitably managed the positions and priced deals for structurers and originators. I realize that now is a difficult time but am confident that I would make an excellent addition to your team for several key reasons:
? Proven experience in the financial markets and direct trading experience in various markets, including electricity and natural gas, mortgage backed securities, U.S. Treasury securities, foreign exchange, EuroCurrency and EuroDollar deposits
? Team player and high work ethic, successfully balancing trading opportunities with managing risk
? Solid portfolio management and risk management experience in electricity and mortgage banking
? Five years direct experience in trading, risk management, structured products and marketing of electricity for the United States
? Actively involved in the physical markets and strong understanding of the western grid
? Experience trading OTC forwards and options at major hubs in other NERC regions such as Cinergy, Entergy, ERCOT, NEPOOL and PJM
? Worked for both unregulated power marketers and regulated utility
? Extensive experience in derivatives and structured products
? Ability to effectively work with marketers pricing and structuring deals for industrial and commercial end users of energy
? Strength in mentoring junior traders
Thank you,
Rick J. Wurlitzer
Home: (281)251-6210, Work: (713)853-5049
E-Mail: Home: [email protected] <mailto:[email protected]>, Work: [email protected]
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arnold-j/inbox/75.
|
Yahoo! ID Search Results ,
The search results for your forgotten Yahoo ID are listed below:
jarnold5329
nymexdesk
You can request a new password for your account
by going to the Forgot Password screen.
http://edit.my.yahoo.com/config/eval_forgot_pw
Thank you for using Yahoo!
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arnold-j/inbox/76.
|
ATTENTION: Changes in Remote Access ,
Please be aware that remote connectivity into the Enron network has changed, IPASS is no longer available. Remote Connectivity into Enron may be obtained by using the eConnect solution. Authorization to use eConnect may be requested via the eRequest system (you will find a link to eRequest on http://itcentral.enron.com).
Email is accessible from any computer with internet connectivity by logging into Outlook Web Access http:\\mail.enron.com with your NT login ID and password. Accessing OWA does not require an eConnect connection.
Please direct all questions or concerns to the Resolution Center at 713-853-1411
ETS customers should direct inquiries to the ETS Solution Center at 713-345-4745
We appreciate your cooperation in advance
|
All Enron Worldwide@ENRON <??SAll Enron Worldwide@ENRON>
| 6,225 |
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arnold-j/inbox/77.
|
info ,
John,
I will have my cell with me until Saturday the 22nd. 713-569-4684. From the 22-29th please reach me at 781-830-9199. I will be out of the country but checking in at that number. I will call you tonight to make sure that this information has made it to you. Thanks-Jeb
| 6,226 |
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arnold-j/inbox/78.
|
Private Equity Fund ,
John -
I want to confirm that you received the literature on the UBS PaineWebber
Private Equity Fund III and the Tamarack Fund. The Private Equity III
literature refers to a December 17 closing date; however, we have extended
that closing, so you may still be able to participate. Have you reviewed
the material, yet?
Thanks,
> Michael Gapinski
> Account Vice President
> UBS PaineWebber, Inc.
> Corporate Employee Financial Services
> 713-654-0365
> 800-553-3119 x365
> Fax: 713-427-7539
> Cell: 281-435-0295
[email protected]
<<Michael Gapinski (E-mail).vcf>>
******************************************************
Notice Regarding Entry of Orders and Instructions:
Please do not transmit orders and/or instructions
regarding your UBSPaineWebber account(s) by e-mail.
Orders and/or instructions transmitted by e-mail will
not be accepted by UBSPaineWebber and UBSPaineWebber
will not be responsible for carrying out such orders
and/or instructions.
Notice Regarding Privacy and Confidentiality:
UBSPaineWebber reserves the right to monitor and
review the content of all e-mail communications sent
and/or received by its employees.
- Michael Gapinski (E-mail).vcf
| 6,227 |
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arnold-j/inbox/79.
|
NYMEX Holiday Hours ,
Friends:
The NYMEX will be open for a normal trading day today, closing at 2:30 p.m. EST.
The market
will remain closed Monday December 24 and Tuesday December 25. NYMEX ACCESS
will
reopen the evening of the 25th at 7:00 p.m. The Exchange will reopen Wednesday
morning the 26th
at 10:00 a.m. EST.
Happy Holidays!!
BNP PARIBAS Commodity Futures
_____________________________________________________________________________________________________________________________________
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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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.
_____________________________________________________________________________________________________________________________________
| 6,228 |
||
arnold-j/inbox/8.
|
Beaver Creek Settlements ,
Folks,
Here's the long awaited settlements chart.
I'm not assuming any credit risk.
--anthony
| 6,229 |
||
arnold-j/inbox/80.
|
Orbitz Travel Purchase Confirmation ,
[IMAGE]=09[IMAGE]=09[IMAGE]=09[IMAGE]=09[IMAGE]=09[IMAGE]=09[IMAGE]=09
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[IMAGE]=09=09=09=09=09[IMAGE]=09[IMAGE]=09
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ote: You cannot use this document to pass through airport security. Withi=
n the next 24 hours we'll send you an "Itinerary Companion" e-mail that wil=
l include your airline ticket number(s), and all the information you will n=
eed to check in for your flight and pass through security. Please review =
carefully: Your Orbitz record locator is OLJ7LV. Airfare Quoted: USD $1,4=
93.40 (including taxes) Shipping Fee: USD $15.00 Total: USD $1,508.40 These=
tickets may carry restrictions. Houston George Bush International (IAH=
) to Philip S.W.Goldson Int (BZE) [IMAGE] Saturday, December 29 [IMAG=
E] Flight: Taca International Airlines 411 [IMAGE] Departure: Decembe=
r 29 2:20 PM CST (IAH) [IMAGE] Arrival: December 29 4:50 PM GMT-06:00 (=
BZE) [IMAGE] Class: Economy [IMAGE] [IMAGE] [IMAGE] Philip S.W.Golds=
on Int (BZE) to Dallas/Fort Worth International (DFW) [IMAGE] Tuesday, =
January 1 [IMAGE] Flight: Taca International Airlines 2140 (Operated by=
: AMERICAN -- AA2194) [IMAGE] Departure: January 1 4:40 PM GMT-06:00 (B=
ZE) [IMAGE] Arrival: January 1 7:44 PM CST (DFW) [IMAGE] Class: Eco=
nomy [IMAGE] [IMAGE] [IMAGE] Dallas/Fort Worth International (DFW) to Ho=
uston George Bush International (IAH) [IMAGE] Tuesday, January 1 [IMA=
GE] Flight: American Airlines 372 [IMAGE] Departure: January 1 8:51 P=
M CST (DFW) [IMAGE] Arrival: January 1 10:03 PM CST (IAH) [IMAGE] C=
lass: Economy [IMAGE] [IMAGE] [IMAGE] Please note: changes to your itiner=
ary may result in additional fees. If you are interested in purchasing tra=
vel protection for this trip, click here for an introduction to Access Amer=
ica . Again, thanks for choosing Orbitz. To show our appreciation, we've=
arranged for you to get special savings on great gifts -- $10 off any purc=
hase at FTD.COM and $30 off popular Omaha Steaks products. There's no minim=
um purchase required and you can take advantage of one or both of these gre=
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Not ready to shop now? These offers are good until June 30th, 2002, so be=
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| 6,230 |
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arnold-j/inbox/81.
|
Re: ,
So what have you decided for your team?
| 6,231 |
||
arnold-j/inbox/82.
|
Re-establish ENA's account ,
Brian,
As we discussed earlier today, Enron North America Corp. (ENA) desires to re-establish its account with Paribas. The purpose of this account would be to sell no more than 2,500 NYMEX natural gas futures contracts to hedge natural gas storage inventory for the months of February, March and April, 2002. Please advise me as soon as possible regarding what ENA will need to do to re-establish its account. Please call me with questions at (w) 713-853-7657 or (m) 713-582-8379.
Regards,
Ed McMichael
Vice President
| 6,232 |
||
arnold-j/inbox/85.
|
Daily Charts 12/28 ,
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/crude28.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas28.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil28.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded28.pdf
Feb. WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clg-qog.pdf
Feb Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf
Feb Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf
Feb Gas/Heat Spread http://www.carrfut.com/research/Energy1/hug-hog.pdf
June Gas/Heat Spread
http://www.carrfut.com/research/Energy1/HUM-HOM.pdf
March Gas/Heat Spread
http://www.carrfut.com/research/Energy1/HUH-HOH.pdf
Feb/May Unlead Spread
http://www.carrfut.com/research/Energy1/HUG-HUK.pdf
Feb/July Crude oil Spread
http://www.carrfut.com/research/Energy1/CLG-CLN.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG28.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG28.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL28.pdf
| 6,235 |
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arnold-j/inbox/86.
|
Optimize the performance of your PC! ,
(For e-mailing list removal information see bottom of e-mail.)
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| 6,236 |
||
arnold-j/inbox/87.
|
Re: Address Change ,
Our recent mailing came back.
If you wish to continue to receive our catalog please send us your address
change ASAP.
Thank you,
Victor Doyle
General Manager
Pop's Wines & Spirits
256 Long Beach Road
Island Park, New York 11558
516.431.0025
516.432.2648, Fax
[email protected]
www.popswine.com
| 6,237 |
||
arnold-j/inbox/88.
|
FREE X-MAS CASINO CHIPS! ,
This message was not sent unsolicited.
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agreed to opt in to receive promotional material. If you wish to unsubscribe please CLICK HERE.
If you received this email by error, please reply to: [email protected]
| 6,238 |
||
arnold-j/inbox/89.
|
Are You Living in Debt, Paycheck to Paycheck?6658 ,
FOLLOW ME TO FINANCIAL FREEDOM!!
I Am looking for people with good work ethics and extrordinary desire to earn at least $10,000 per month working from home!
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" The moment you commit an quit holding back, all sorts of unforseen incidents, meetings and material assistance will
rise up to help you. The simple act of commitment is a powerful magnet for help." - Napoleon Hill
To be REMOVED from this list, simply click reply and submit.
| 6,239 |
||
arnold-j/inbox/9.
|
FW: New Multi-commodity Options Trading Products ,
Hi,
My name is Iris Mack. Currently I work on Enron's Power Options Trading desk.
I am primarily responsible for building our business in long-term, derivatives structures/trades on multiple commodities and financials. For example, we are exploring potential structures and trades which involve power, gas, crude oil, weather derivatives, metals, etc. Some of the building blocks for these multi-commodity derivatives products may be found in the attached document.
We are looking to build this business via utilizing as many of Enron's internal resources as possible. Hence, it would be most helpful to meet with the relevant individuals in Gas Trading who would be interested in the development of multi-commodity derivatives trades/structures which may used to develop customized risk management tools for our clients.
Thank you in advance for your assistance.
Kind regards,
Iris Mack, MBA/PhD
Enron Power Options Trading Desk
| 6,240 |
||
arnold-j/inbox/90.
|
Daily Charts 12/31 ,
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/crude02.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas02.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil02.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded02.pdf
Feb. WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clg-qog.pdf
Feb Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf
Feb Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf
Feb Gas/Heat Spread http://www.carrfut.com/research/Energy1/hug-hog.pdf
June Gas/Heat Spread
http://www.carrfut.com/research/Energy1/HUM-HOM.pdf
March Gas/Heat Spread
http://www.carrfut.com/research/Energy1/HUH-HOH.pdf
Feb/May Unlead Spread
http://www.carrfut.com/research/Energy1/HUG-HUK.pdf
Feb/July Crude oil Spread
http://www.carrfut.com/research/Energy1/CLG-CLN.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG02.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG02.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL02.pdf
Scott Mollner Recommendation
http://www.carrfut.com/research/Energy1/recom12-31-01.pdf
| 6,241 |
||
arnold-j/inbox/91.
|
Nat Gas market analysis for 12-31-01 ,
Attached please find the Natural Gas market analysis for today.
Thanks,
Bob McKinney
- 12-31-01 Nat Gas.doc
| 6,242 |
||
arnold-j/inbox/92.
|
The Daily Quote ,
=09
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t =09 [IMAGE]Real-Time Exchanges & Streaming Charts =09=09=09
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Up/Downgrades [IMAGE] | [IMAGE]Splits [IMAGE] | [IMAGE]Economic Calendar =
[IMAGE] | [IMAGE]Industry Research [IMAGE] | [IMAGE]Finance101 [IMAGE] =
=09=09=09
=09=09=09=09=09
=09=09 =09 =09
=09=09=09=09
=09 [IMAGE]The Daily Quote Edit watchlist or email address [IMAG=
E]NASDAQ 1977.22 10.04 (0.50%) [IMAGE]DJIA 10094.64 42.35 (0.41%) =
[IMAGE]SP500 1157.15 3.87 (0.33%) - - - - - ALL Indices?[IMAGE]? =
[IMAGE]FINANCE 101: ASK THE EDITOR Richard Aggers asks, [IMAGE]Q. =
[IMAGE]"What are the current pitfalls of REIT's?" [IMAGE]A. REIT is an a=
cronym for Real Estate Investment Trust, and here is how it works. Not so =
very....continue [IMAGE]? - - - - - [IMAGE]Question? Ask the editor [IMAG=
E]? ([email protected]) - - - - - Browse Q+A Archive [IMAGE]MONDAY'S=
PRODUCT HIGHLIGHT [IMAGE]RAGING BULL Would you like to know what other inv=
estors are saying about your favorite stocks? Visit the Raging Bull message=
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c Releases at this time! [IMAGE]Your Watchlist [IMAGE]Edit [IMAGE]Symb=
ol [IMAGE]Last [IMAGE]Change [IMAGE]NYSE:AWA [IMAGE]3.10 0.63 (25.50%)=
[IMAGE]NASDAQ:NEXM [IMAGE]3.45 0.61 (21.47%) [IMAGE]NASDAQ:ADLT =
[IMAGE]1.48 0.15 (11.27%) [IMAGE]NASDAQ:GILTF [IMAGE]5.38 0.74 (15.94%=
) [IMAGE]NASDAQ:TRPH [IMAGE]1.64 0.07 (4.45%) [IMAGE]NASDAQ:SGMO =
[IMAGE]9.27 1.17 (14.44%) - - - - - Setup a fully personalized port=
folio [IMAGE]? [IMAGE]Your Watchlist News [IMAGE]AMERICA WEST HDLGS B=
U.S. stocks slip as investors close books on 2001 31 Dec 2001, 12:42pm ET =
(Reuters) US Airways shares climb on America West decision 31 Dec 2001, 12:=
30pm ET (Reuters) U.S. stocks slip on final trading day of tough year 31 De=
c 2001, 11:51am ET (Reuters) - - - - - MORE AWA News [IMAGE]? [IMAGE]NE=
XMED, INC. (NM) Alprox-TD (R) Data Presented at Key Meeting 6 Dec 2001, 07:=
32am ET (PR Newswire) NexMed Announces NDA Filing in Singapore 27 Nov 2001,=
07:31am ET (PR Newswire) NEXMED INC FILES FORM 10-Q (*US:NEXM) 14 Nov 2001=
, 2:33pm ET (EDGAR Online) - - - - - MORE NEXM News [IMAGE]? [IMAGE]ADV=
ANCED LIGHTING TECHNOLOGIES INC. (NM) ADVANCED LIGHTING TECHNOLOGIES INC FI=
LES FORM 8-K (*US:ADLT) 27 Dec 2001, 4:38pm ET (EDGAR Online) Advanced Ligh=
ting Technologies Completes Sale of Fixture Subsidiaries 13 Dec 2001, 09:50=
am ET (PR Newswire) ADVANCED LIGHTING TECHNOLOGIES INC FILES FORM 10-Q (*US=
:ADLT) 15 Nov 2001, 02:59am ET (EDGAR Online) - - - - - MORE ADLT News [IM=
AGE]? [IMAGE]GILAT SATELLITE NETWORKS LTD. (NM) StarBand Launches Custom=
er Education Channel with Kaplan, Inc.; Partnership for Innovative Long Di=
stance Learning From the Sky 12 Dec 2001, 12:39pm ET (BusinessWire) GILAT =
SATELLITE NETWORKS LTD FILES FORM SC 13D/A (*US:GILTF) 4 Dec 2001, 5:24pm E=
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Home;-- Satellite-delivered Internet company Welcomes Anxious Cable Custome=
rs 3 Dec 2001, 1:42pm ET (BusinessWire) - - - - - MORE GILTF News [IMAGE]?=
[IMAGE]TRIPATH TECHNOLOGY, INC. (NM) Tripath Expands Audio Amplifier Re=
lationship With ST Microelectronics 18 Dec 2001, 07:01am ET (PR Newswire) T=
ripath Technology Recognized for Solid Financial Performance By Fabless Sem=
iconductor Association 11 Dec 2001, 08:03am ET (PR Newswire) Tripath Powers=
Bel Canto's Award Winning Power Amplifier 6 Dec 2001, 07:02am ET (PR Newsw=
ire) - - - - - MORE TRPH News [IMAGE]? [IMAGE]SANGAMO BIOSCIENCES, INC.=
(NM) GeneFormatics Appoints Edward Lanphier to Board of Directors 7 Nov 2=
001, 08:38am ET (BusinessWire) Sangamo BioSciences Granted U.K. Patent Cove=
ring Methods of Engineering Zinc Finger DNA-Binding Proteins 29 Oct 2001, 4=
:05pm ET (PR Newswire) SANGAMO BIOSCIENCES INC FILES FORM 10-Q (*US:SGMO) 1=
9 Oct 2001, 4:59pm ET (EDGAR Online) - - - - - MORE SGMO News [IMAGE]? =
[IMAGE]Today's Top Stock News As of 31 Dec 2001, 12:49 ET powered by Brief=
ing.com [IMAGE]Dow -32, Nasdaq -10, S?-3.12 Dec 31 2001 12:00pm ET The mar=
ket opened the session on a negative note and except for a very brief flirt=
ation with unchanged levels has spent the session on the defensive. Not su=
rprisingly, volume has been on the light side for the final se... continue =
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rivacy Policy
| 6,243 |
||
arnold-j/inbox/94.
|
Hollywood video ,
You got a notice from Hollywood Video saying you owe $64.99 for a DVD you
borrowed on 11/30/01 entitled "15 minutes". You are to enclose the letter
when paying your bill so I am mailing it to you. Be sure to look for it in
the mail.
Also, we need to talk about the weekend of 01/12. My doctor's appointment
has been changed. Let's talk about it.
Sorry I forgot you went to Belize. Hope you had a wonderful time. Hope
there weren't any bugs in that thatched roof! Love you, Mom
| 6,245 |
||
arnold-j/inbox/95.
|
Crouching Tiger Hidden Dragon has been received. ,
[IMAGE] Qwiklist(10) MyAccount Rental History Shipping List We have received Crouching Tiger Hidden Dragon(2000) on 12/31/2001 We will be processing your QwikList selections and will send the next available dvd on your QwikList. You will receive another email when it ships. Thank You! [IMAGE] Crouching Tiger Hidden Dragon(2000) Home | Customer Service | Rental Details
| 6,246 |
||
arnold-j/inbox/96.
|
L.A. Confidential has been received. ,
[IMAGE] Qwiklist(9) MyAccount Rental History Shipping List We have received L.A. Confidential(1997) on 12/31/2001 We will be processing your QwikList selections and will send the next available dvd on your QwikList. You will receive another email when it ships. Thank You! [IMAGE] L.A. Confidential(1997) Home | Customer Service | Rental Details
| 6,247 |
||
arnold-j/inbox/97.
|
Raging Bull has been shipped. ,
[IMAGE] Qwiklist(9) MyAccount Rental History Shipping List We shipped you Raging Bull(1980) on 12/31/2001 You should receive your movie within the next 2-5 days [IMAGE] Raging Bull(1980) Home | Customer Service | Rental Details
| 6,248 |
||
arnold-j/inbox/98.
|
Saving Private Ryan has been shipped. ,
[IMAGE] Qwiklist(9) MyAccount Rental History Shipping List We shipped you Saving Private Ryan(1999) on 12/31/2001 You should receive your movie within the next 2-5 days [IMAGE] Saving Private Ryan(1999) Home | Customer Service | Rental Details
| 6,249 |
||
arnold-j/inbox/99.
|
OnePass Member continental.com Specials for john arnold ,
continental.com Specials for john arnold
Tuesday, January 1, 2002
****************************************
HAPPY NEW YEAR!
Continental makes it easy to unwind with an additional 10% off select sale fares to destinations in North America and Europe. Hurry, seats are limited and this sale ends January 15, 2002.
Purchase your eTickets now at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*VA
EARN UP TO 20,000 BONUS MILES*
Now through February 15, 2002, we'll reward you with additional OnePass miles every time you purchase an eTicket on continental.com and fly - and that's in addition to your actual flight miles.
View all the details and register at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*XA
* NOTE: Bonus Mile offer does not apply to continental.com Specials.
TRAVEL UPDATES
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before leaving for the airport. We're looking forward to welcoming you onboard!
****************************************
TABLE OF CONTENTS
1. This Week's Destinations
2. Hilton Hotels & Resorts, Doubletree Hotels & Resorts, & Embassy Suites Hotels Offers
3. Westin Hotels & Resorts, Sheraton Hotels & Resorts, Four Points by Sheraton, St. Regis, The Luxury Collection and W Hotels Offers
4. Alamo Rent A Car Offers
5. National Car Rental Offers
****************************************
1. THIS WEEK'S DESTINATIONS
Depart Saturday, January 5 and return on either Monday, January 7 or Tuesday, January 8, 2002. Please see the Terms and Conditions listed at the end of this e-mail.
For OnePass members, here are special opportunities to redeem miles for travel to the following destinations. As an additional benefit, OnePass Elite members can travel using the miles below as the only payment necessary. The following are this week's OnePass continental.com Specials.
To use your OnePass miles (as listed below) to purchase continental.com Specials, you must call 1-800-642-1617.
THERE WILL NOT BE AN ADDITIONAL $20 CHARGE WHEN REDEEMING ONEPASS MILES FOR CONTINENTAL.COM SPECIALS THROUGH THE TOLL FREE RESERVATIONS NUMBER.
If you are not using your OnePass miles, purchase continental.com Specials online until 11:59pm (CST) Friday at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*ZA
You can also purchase continental.com Specials for an additional cost of $20 per ticket through our telephone service at 1-800-642-1617.
**********************************************
ROUND-TRIP TRAVEL MAY ORIGINATE IN EITHER CITY
**********************************************
****Roundtrip BETWEEN CLEVELAND, OH and:
$29 + 12,500 Miles or $119 - Milwaukee, WI
****Roundtrip BETWEEN HOUSTON, TX and:
$29 + 10,000 Miles or $109 - Alexandria, LA
$29 + 12,500 Miles or $119 - Amarillo, TX
$29 + 10,000 Miles or $109 - Beaumont/Pt. Arthur, TX
$29 + 10,000 Miles or $109 - Gulfport/Biloxi, MS
$29 + 12,500 Miles or $119 - Tulsa, OK
****Roundtrip BETWEEN NEW YORK/NEWARK and:
$29 + 12,500 Miles or $119 - Albany, NY
$29 + 12,500 Miles or $119 - Greensboro/Piedmont Triad, NC
$29 + 15,000 Miles or $159 - Kansas City, MO
$29 + 12,500 Miles or $129 - Nashville, TN
$29 + 15,000 Miles or $159 - New Orleans, LA
$29 + 10,000 Miles or $109 - Norfolk, VA
$29 + 10,000 Miles or $109 - Portland, ME
$29 + 10,000 Miles or $109 - Richmond, VA
$29 + 10,000 Miles or $109 - Syracuse, NY
********************************
2. CONTINENTAL.COM SPECIALS FROM HILTON HOTELS AND RESORTS, DOUBLETREE
HOTELS AND RESORTS, AND EMBASSY SUITES HOTELS
The following rates are available January 5 - January 7, 2002 and are priced per night.
--------------------------------------
Cleveland, OH - Hilton Garden Inn, Cleveland Airport - $79
Houston, TX - Embassy Suites Hotel Houston, Near The Galleria - $130
Houston, TX - Hilton Houston Hobby Airport - $88
Houston, TX - Hilton Houston Westchase and Towers - $149
Nashville, TN - Hilton Suites Nashville, Downtown - $109
Newark, NJ - Doubletree Club Suites Jersey City, Jersey City NJ - $149 (January 5-6 only)
Newark, NJ - Hilton Pearl River, Pearl River NY - $125
To book this week's special rates for Hilton Family Hotels, visit and book at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*AA
Special rates apply only for the dates listed at each hotel and are subject to availability. Check hilton.com for specific dates at each Hilton Family Hotel. Or call at 1-800-774-1500 and ask for Value Rates. Restrictions apply to these rates.
****************************************
3. CONTINENTAL.COM SPECIALS LAST-MINUTE WEEKEND RATES FROM WESTIN HOTELS & RESORTS, SHERATON HOTELS & RESORTS, FOUR POINTS BY SHERATON, ST. REGIS, THE LUXURY COLLECTION, AND W HOTELS
There are no offerings from Westin Hotels & Resorts, Sheraton Hotels & Resorts, Four Points by Sheraton, St. Regis, The Luxury Collection and W Hotels this week.
********************************
4. CONTINENTAL.COM SPECIALS FROM ALAMO RENT A CAR
Rates listed below are valid on compact class vehicles at airport locations only. Other car types may be available. Rates are valid for rentals on Saturday, January 5 with returns Monday, January 7 or Tuesday, January 8, 2002.
-------------------------------
$17 a day in: Milwaukee, WI (MKE)
$18 a day in: Greensboro/Piedmont Triad, NC (GSO)
$18 a day in: Houston, TX (IAH)
$18 a day in: Kansas City, MO (MCI)
$18 a day in: Nashville, TN (BNA)
$18 a day in: Tulsa, OK (TUL)
$20 a day in: Cleveland, OH (CLE)
$26 a day in: New Orleans, LA (MSY)
$26 a day in: Newark, NJ (EWR)
To receive continental.com Specials discounted rates, simply make advance reservations and be sure to request ID # 596871 and Rate Code 33. Book your reservation online at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*BA
or contact Alamo at 1-800 GO ALAMO.
*If you are traveling to a city or a different date that is not listed, Alamo offers great rates when you book online at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*CA
For complete details on these offers, please refer to Alamo's terms and conditions below.
****************************************
5. CONTINENTAL.COM SPECIALS FROM NATIONAL CAR RENTAL
Rates listed below are valid on intermediate class vehicles at airport locations only. Other car types may be available. Rates are valid for rentals on Saturday, January 5 with returns Monday, January 7 or Tuesday, January 8, 2002.
------------------------------------------
$21 a day in: Amarillo, TX (AMA)
$21 a day in: Greensboro/Piedmont Triad, NC (GSO)
$21 a day in: Gulfport/Biloxi, MS (GPT)
$21 a day in: Houston, TX (IAH)
$21 a day in: Kansas City, MO (MCI)
$21 a day in: Nashville, TN (BNA)
$21 a day in: Syracuse, NY (SYR)
$21 a day in: Tulsa, OK (TUL)
$23 a day in: Cleveland, OH (CLE)
$28 a day in: Alexandria, LA (AEX)
$28 a day in: Norfolk, VA (ORF)
$28 a day in: Richmond, VA (RIC)
$29 a day in: New Orleans, LA (MSY)
$29 a day in: Newark, NJ (EWR)
To receive continental.com Specials discounted rates, simply make your reservations in advance and be sure to request Product Code COOLUS. To make your reservation, contact National at 1-800-CAR-RENT (1-800-227-7368), or book your reservation online at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*DA
Please enter COOLUS in the Product Rate Code field, and 5037126 in the Contract ID field to ensure you get these rates on these dates.
* If you are traveling to a city or a different date that is not listed, National offers great rates when you book online at:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*VUA
For complete details on these offers, please refer to National's terms and conditions below.
****************************************
CONTINENTAL.COM SPECIALS RULES:
Fares include a $37.20 fuel surcharge. Passenger Facility Charges, up to $18 depending on routing, are not included. Up to $2.75 per segment federal excise tax, as applicable, is not included. Applicable International and or Canadian taxes and fees up to $108, varying by destination, are not included and may vary slightly depending on currency exchange rate at the time of purchase. For a complete listing of rules please visit:
http://continentalairlines.rsc01.net/servlet/cc4?JHEVAZ*qHkghsKQLJmELgkhgEJht*z*VVA
ALAMO RENT A CAR'S TERMS AND CONDITIONS:
Taxes (including VLF taxes up to US$1.89 per day in California and GST), other governmentally-authorized or imposed surcharges, license recoupment fees, fuel, additional driver fee, drop charges and optional items (such as CDW Waiver Savers(R) up to US$18.99 a day,) are extra. Renter must meet standard age, driver and credit requirements. Rates higher for drivers under age 25. Concession recoupment fees may add up to 14% to the rental rate at some on-airport locations. Up to 10.75% may be added to the rental rate if you rent at an off-airport location and exit on our shuttle bus. Weekly rates require a 5-day minimum rental or daily rates apply. For weekend rates, the vehicle must be picked up after 9 a.m. on Thursday and returned before midnight on Monday or higher daily rates apply. 24-hour advance reservation required. May not be combined with other discounts. Availability is limited. All vehicles must be returned to the country of origin. Offer not valid in San Jose, CA.
NATIONAL CAR RENTAL TERMS AND CONDITIONS:
Customer must provide Contract ID# at the time of reservation to be eligible for discounts. Offer valid at participating National locations in the US and Canada. Minimum rental age is 25. This offer is not valid with any other special discount or promotion. Standard rental qualifications apply. Subject to availability and blackout dates. Advance reservations required. Geographic driving restrictions may apply.
TERMS AND CONDITIONS FOR WESTIN, SHERATON, FOUR POINTS,
ST. REGIS, THE LUXURY COLLECTION, AND W HOTELS:
Offer is subject to availability. Advance Reservations required and is based on single/double occupancy. Offer not applicable to group travel. Additional Service charge and tax may apply. The discount is reflected in the rate quoted. Offer valid at participating hotel only. Offer valid for stays on Fri - Mon with a Friday or Saturday night arrival required. Rate available for this coming weekend only. Offer available only by making reservations via the internet. A limited number of rooms may be available at these rates.
---------------------------------------
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arnold-j/sent_items/10.
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Re: Defense ,
don't make me type the math on the computer pooks
"Eva Pao" <[email protected]> on 05/13/2001 03:05:12 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: Defense
What's your defense for you bid 0 for the company? Why was the info
assymetry at 100%???
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:54 PM
To: [email protected]
Subject: RE: Extra credit
have you taken any finance courses yet? what's good?
| 6,360 |
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arnold-j/sent_items/102.
|
,
http://messages.yahoo.com/bbs?.mm=FN&action=m&board=7081781&tid=ene&sid=7081781&mid=11711
| 6,363 |
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arnold-j/sent_items/103.
|
RE: ng views + wager ,
7:2 at 2:1
From: Jennifer Fraser/ENRON@enronXgate on 04/17/2001 05:42 PM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
new odds
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Monday, April 16, 2001 7:44 AM
To: Fraser, Jennifer
Subject: RE: ng views + wager
i'll take 10:1 this morning
From: Jennifer Fraser/ENRON@enronXgate on 04/16/2001 07:40 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
thats pleasant
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Sunday, April 15, 2001 3:29 PM
To: Fraser, Jennifer
Subject: RE: ng views + wager
eat my shorts
From: Jennifer Fraser/ENRON@enronXgate on 04/12/2001 05:01 PM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
3:1 and your on
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Thursday, April 12, 2001 11:04 AM
To: Fraser, Jennifer
Subject: RE: ng views + wager
the implied market on that from put spreads is 5.3:1. I'll take 4:1. that's all the juice i'll pay.
From: Jennifer Fraser/ENRON@enronXgate on 04/12/2001 07:59 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
Most import - the wager - I will take the over on May NG (4.95). 2:1 is okay--- $5 per penny okay?
Agree - Products
Rally is not different for products. 92% of heating oil is made ondemand (storage is not as important as in nat gas) Heat will get ugly this October and then give it up (unless we have 7 blizzzards in the Northeast very early).
SOme things to consider :
1- in the next 3-4 weeks we will finish the very heavy maintenance season and be in full blown gasoline season.
- yields will be preferentially shifted for HU
3- nobody will pay any attention to HO
2-HO will have incremental demand due to utlity switching and will quietly build slower than last year
4- therefore by September everyone will freak out
5- After the OCtober contract expires (HO) , everyone will realize (similar to NG) that the world will not end.
Where does this get us:
1- Sell q3 HU crack and by Q4HO crack (By the time q3 prices out--the wind will have been taken out of HU sails - plus you can do it month avg--therefore less noise)
2-Benefit from heat's recent excitement -- sell HO calls (June -Aug), buy ng puts nov-jan
Ng-Disagree:
I think prices stay high through June. The big drop off come some where in July 15 to Aug 15 and downhill from there. (Looks like 1998)
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Wednesday, April 11, 2001 10:41 PM
To: Fraser, Jennifer
Subject: Re: ng views
the only change that's happened to my long term outlook has been that the weather in the short term has been more bullish and we'll have 30 or so bcf less storage than i was anticpating in two weeks. so yea, my curve is a touch higher, but it doesnt change my longer term view. most of the move this week was a short sqeeze of spec shorts combined with a strong heat market. a little concerned about heat, but also saw products very strong going into the season this past winter only to stage a huge failure. not convinced this rally in products is different.
From: Jennifer Fraser/ENRON@enronXgate on 04/11/2001 09:04 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: ng views
where's your curve now?
MAy
June
Jul
Aug
Sep
Oct
Nov
Dec Jan 02
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
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arnold-j/sent_items/104.
|
Re: FW: Clay Christensen Speaks: Wednesday, 3:30, Spangler ,
That's what I'm talking ABOUT !!!!
"Eva Pao" <[email protected]> on 04/16/2001 09:35:14 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: FW: Clay Christensen Speaks: Wednesday, 3:30, Spangler Auditorium!
-----Original Message-----
From: [email protected] [mailto:[email protected]]On Behalf Of David Margalit
Sent: Monday, April 16, 2001 10:38 PM
To: [email protected]
Subject: Clay Christensen Speaks: Wednesday, 3:30, Spangler Auditorium!
You've read the Innovator's Dilemma. Now learn the latest.
Clay Christensen
How can I know in advance if something is a high-potential disruptive market opportunity?
3:30pm, Wednesday, April 18th
Spangler Auditorium
Come watch Clay Christensenshare his most recent thoughts on disruption, innovation and business.
Part of the HBS Student Association's Thought Leadership Speaker Series
Be sure not to miss:
Michael Porter: Strategy: New Learnings: 3:30pm, Tuesday, April 17th Spangler Auditorium
Tom Eisenmann: Get Big Fast? Promise and Peril on the Path to the Evernet
3:00pm, Thursday, April 19th Aldrich 110
Rosabeth Moss Kanter: Evolve!: Succeeding in the Digital Culture of Tomorrow
4:30pm, Thursday, April 19th Aldrich 109
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arnold-j/sent_items/105.
|
RE: Receipt of Hedge Fund Information ,
mike:
just want to confirm you received my money and forms.
also, checking to see if i am set up to sell naked calls on ENE. may be looking to do something this week. probably 100-200 contracts.
john
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arnold-j/sent_items/106.
|
Re: Loss Limit Notification for April 11th and 12th ,
the 14 mm loss was due to a booking mistake that could not be corrected before the books were posted and is being corrected tonight
Chris Abel
04/16/2001 01:08 PM
To: Mike Grigsby/HOU/ECT@ECT, John Arnold/HOU/ECT@ECT
cc: Frank Hayden/Enron@EnronXGate, Kenneth Thibodeaux/Enron@EnronXGate, Shona Wilson/NA/Enron@Enron
Subject: Loss Limit Notification for April 11th and 12th
Mike, can you please provide an explanation for the $71mm loss on the 11th and the $31mm loss on the 12th, for reporting purposes?
John, can you please provide an explanation for the $14mm loss on the 12th, for reporting purposes?
Thanks,
Chris Abel
Manager, Risk Controls and Consolidated Risk Reporting
| 6,367 |
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arnold-j/sent_items/107.
|
Re: Pay all bills with just 1 monthly payment! [y5i64] ,
fuck you
<[email protected]> on 04/16/2001 11:09:55 AM
Please respond to [email protected]
To: [email protected]
cc:
Subject: Pay all bills with just 1 monthly payment! [y5i64]
Got debt? We can help using Debt Consolidation!
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To receive no further offers from our company regarding
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e-mail with the word 'Remove' in the subject line.
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arnold-j/sent_items/108.
|
RE: ng views + wager ,
i'll take 10:1 this morning
From: Jennifer Fraser/ENRON@enronXgate on 04/16/2001 07:40 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
thats pleasant
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Sunday, April 15, 2001 3:29 PM
To: Fraser, Jennifer
Subject: RE: ng views + wager
eat my shorts
From: Jennifer Fraser/ENRON@enronXgate on 04/12/2001 05:01 PM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
3:1 and your on
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Thursday, April 12, 2001 11:04 AM
To: Fraser, Jennifer
Subject: RE: ng views + wager
the implied market on that from put spreads is 5.3:1. I'll take 4:1. that's all the juice i'll pay.
From: Jennifer Fraser/ENRON@enronXgate on 04/12/2001 07:59 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
Most import - the wager - I will take the over on May NG (4.95). 2:1 is okay--- $5 per penny okay?
Agree - Products
Rally is not different for products. 92% of heating oil is made ondemand (storage is not as important as in nat gas) Heat will get ugly this October and then give it up (unless we have 7 blizzzards in the Northeast very early).
SOme things to consider :
1- in the next 3-4 weeks we will finish the very heavy maintenance season and be in full blown gasoline season.
- yields will be preferentially shifted for HU
3- nobody will pay any attention to HO
2-HO will have incremental demand due to utlity switching and will quietly build slower than last year
4- therefore by September everyone will freak out
5- After the OCtober contract expires (HO) , everyone will realize (similar to NG) that the world will not end.
Where does this get us:
1- Sell q3 HU crack and by Q4HO crack (By the time q3 prices out--the wind will have been taken out of HU sails - plus you can do it month avg--therefore less noise)
2-Benefit from heat's recent excitement -- sell HO calls (June -Aug), buy ng puts nov-jan
Ng-Disagree:
I think prices stay high through June. The big drop off come some where in July 15 to Aug 15 and downhill from there. (Looks like 1998)
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Wednesday, April 11, 2001 10:41 PM
To: Fraser, Jennifer
Subject: Re: ng views
the only change that's happened to my long term outlook has been that the weather in the short term has been more bullish and we'll have 30 or so bcf less storage than i was anticpating in two weeks. so yea, my curve is a touch higher, but it doesnt change my longer term view. most of the move this week was a short sqeeze of spec shorts combined with a strong heat market. a little concerned about heat, but also saw products very strong going into the season this past winter only to stage a huge failure. not convinced this rally in products is different.
From: Jennifer Fraser/ENRON@enronXgate on 04/11/2001 09:04 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: ng views
where's your curve now?
MAy
June
Jul
Aug
Sep
Oct
Nov
Dec Jan 02
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
| 6,369 |
||
arnold-j/sent_items/109.
|
Re: EnronOnline competitor questionnaire ,
schedule 30 min to sit down with me either mon or tues after 430. if you want to get info, sending out an email survey is not the right way. much easier to respond to a question in voice rather than typing it out.
<[email protected]> on 04/09/2001 04:17:59 PM
To: [email protected]
cc: [email protected]
Subject: EnronOnline competitor questionnaire
Hello Mr. Arnold,
Thank you for speaking with me today with Kenneth Parkhill. Unfortunately,
none of my teammates are available to meet with you today. Would you please
review our questionnaire and reply back to me with your comments about the
questionnaire and answers to any questions that apply to your work.
We will follow up with you later this week if we have questions. Thank you
for your help.
Charles Womack
2002 Rice MBA Candidate
281-413-8147
[email protected]
- Questionnaire.doc
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arnold-j/sent_items/11.
|
RE: waiting ,
probability * payout =
1 heads .5 0 = 0
tails 2 heads .25 1 = .25
tails 3 heads .125 2 = .25
tails 4 heads .0625 4 = .25
tails 5 heads .03125 8 = .25
"Eva Pao" <[email protected]> on 05/13/2001 03:23:47 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: RE: waiting
which game is that?
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 5:16 PM
To: [email protected]
Subject: Re: waiting
Expected value of game = 1/2 * 0 + 1/4 * 1 + 1/8 *2 + 1/16 *4 +1/32 *
8+....
= 0 +.25 +.25 +.25 +.25 +...
= infinity
"Eva Pao" <[email protected]> on 05/13/2001 03:11:46 PM
Please respond to <[email protected]>
To: <[email protected]>
cc:
Subject: waiting
-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 13, 2001 4:37 PM
To: [email protected]
Subject: Re: Extra credit
rules to a game:
You flip a coin. If you get tails you win 0. if you get heads, i give you
$1. Keep flipping until you get a tails, at which point you walk away with
the money. however, each heads you get after the first you double your
money. So if you flip heads 3 times and then tails, you get $4. What's
you bid/offer on playing this game? (would you pay $.5 to play? $1? $2?
what you charge me play against you?)
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arnold-j/sent_items/110.
|
RE: ng views + wager ,
eat my shorts
From: Jennifer Fraser/ENRON@enronXgate on 04/12/2001 05:01 PM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
3:1 and your on
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Thursday, April 12, 2001 11:04 AM
To: Fraser, Jennifer
Subject: RE: ng views + wager
the implied market on that from put spreads is 5.3:1. I'll take 4:1. that's all the juice i'll pay.
From: Jennifer Fraser/ENRON@enronXgate on 04/12/2001 07:59 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: RE: ng views + wager
Most import - the wager - I will take the over on May NG (4.95). 2:1 is okay--- $5 per penny okay?
Agree - Products
Rally is not different for products. 92% of heating oil is made ondemand (storage is not as important as in nat gas) Heat will get ugly this October and then give it up (unless we have 7 blizzzards in the Northeast very early).
SOme things to consider :
1- in the next 3-4 weeks we will finish the very heavy maintenance season and be in full blown gasoline season.
- yields will be preferentially shifted for HU
3- nobody will pay any attention to HO
2-HO will have incremental demand due to utlity switching and will quietly build slower than last year
4- therefore by September everyone will freak out
5- After the OCtober contract expires (HO) , everyone will realize (similar to NG) that the world will not end.
Where does this get us:
1- Sell q3 HU crack and by Q4HO crack (By the time q3 prices out--the wind will have been taken out of HU sails - plus you can do it month avg--therefore less noise)
2-Benefit from heat's recent excitement -- sell HO calls (June -Aug), buy ng puts nov-jan
Ng-Disagree:
I think prices stay high through June. The big drop off come some where in July 15 to Aug 15 and downhill from there. (Looks like 1998)
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
-----Original Message-----
From: Arnold, John
Sent: Wednesday, April 11, 2001 10:41 PM
To: Fraser, Jennifer
Subject: Re: ng views
the only change that's happened to my long term outlook has been that the weather in the short term has been more bullish and we'll have 30 or so bcf less storage than i was anticpating in two weeks. so yea, my curve is a touch higher, but it doesnt change my longer term view. most of the move this week was a short sqeeze of spec shorts combined with a strong heat market. a little concerned about heat, but also saw products very strong going into the season this past winter only to stage a huge failure. not convinced this rally in products is different.
From: Jennifer Fraser/ENRON@enronXgate on 04/11/2001 09:04 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: ng views
where's your curve now?
MAy
June
Jul
Aug
Sep
Oct
Nov
Dec Jan 02
Jen Fraser
Enron Global Markets Fundamentals
713-853-4759
| 6,372 |
||
arnold-j/sent_items/111.
|
Re: I need your phone # to help your debt problem. [h7gmu] ,
fuck you
[email protected] on 04/14/2001 05:42:02 AM
Please respond to [email protected]
To: [email protected]
cc:
Subject: I need your phone # to help your debt problem. [h7gmu]
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| 6,373 |
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arnold-j/sent_items/112.
|
Re: Need help with your bills this month? [swbij] ,
fuck you
[email protected] on 04/15/2001 07:41:06 AM
Please respond to [email protected]
To: [email protected]
cc:
Subject: Need help with your bills this month? [swbij]
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arnold-j/sent_items/113.
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Re: Stop harrassment by creditors, today! [amfos] ,
fuck you
[email protected] on 04/15/2001 07:41:11 AM
Please respond to [email protected]
To: [email protected]
cc:
Subject: Stop harrassment by creditors, today! [amfos]
Are you behind in bills?
Late on a payment?
Let us help you get out of debt NOW!
If you are interested, we invite you to request free
information at the end of this form.
What we can do to help YOU!
* Stop harrassment by creditors.
* Reduce your principal balance up to 50%
* Consolidate your debts into one low monthly payment
* Improve your credit rating
* Lower your monthly payments by 40% - 60%
Things to keep in mind:
* There is no need to own property
* There is no need to own any equity
* This is not a loan
This is a program that has helped thousands just like YOU!
If you are interested, we invite you to read our free
information please provide the following information:
-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
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Address:
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| 6,375 |
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arnold-j/sent_items/114.
|
RE: action ,
puh lease
-----Original Message-----
From: "Eva Pao" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Eva+20Pao+22+20+3Cepao+40mba2002+2Ehbs+2Eedu+3E+40ENRON@ENRON.com]
Sent: Wednesday, May 16, 2001 10:28 PM
To: [email protected]
Subject: action
subject of the email is going to be the only piece that you're going to get
from me.
| 6,376 |
||
arnold-j/sent_items/115.
|
FW: Natural Update ,
-----Original Message-----
From: "Mark Sagel" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Mark+20Sagel+22+20+3Cmsagel+40home+2Ecom+3E+40ENRON@ENRON.com]
Sent: Sunday, May 20, 2001 6:04 PM
To: John Arnold
Subject: Natural Update
FYI
- ng052001.doc
| 6,377 |
||
arnold-j/sent_items/116.
|
RE: Interview with Economist ,
I am available tomorrow after 3, preferably between 3-4.
-----Original Message-----
From: Meyer, Vance
Sent: Monday, May 21, 2001 10:45 AM
To: Arnold, John
Subject: Interview with Economist
John --
I don't think we've met, but I'm Vance Meyer, a media relations director for Enron. Tomorrow, Jeff Skilling and some other key players are interviewing for a story on eCommerce with Vijay Vaitheeswaran, a reporter with the Economist. Vijay this morning asked if you would be available as well. I can send you more detail once I have your availability. Understanding your limited time during trading hours, do you have a late afternoon availability? If not, would you rather do it in the late morning?
If you can and will do the interview, please let me know.
Thanks
Vance Meyer
54459
| 6,378 |
||
arnold-j/sent_items/117.
|
RE: Interview with Economist ,
that's fine
-----Original Message-----
From: Meyer, Vance
Sent: Monday, May 21, 2001 11:37 AM
To: Arnold, John
Subject: RE: Interview with Economist
John -- could we do 4 p.m. even? He'll be talking to Piper at 3-4, and that interview will probably end with a trading floor tour and we could pass the baton at that point.
Vance
| 6,379 |
||
arnold-j/sent_items/118.
|
,
felt much better after i puked 4 times this morning.
you doing anything tonight?
| 6,380 |
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