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; mark.golden@dowjones.com

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; michael.rieke@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.


Jeremy,

I don't have access to run this book.  Will you please get me authorization?
Thanks.

DG


Rob, thanks for the update - I am assuming that you will come up with $23M
Cdn ($16M USD) - "highly likely" with PML.  We do not have recorded in the
financial statements the $8M Cdn in done deals - you may want to look into
that.

We need the money to show up given every other Enron group is flaking - bail
me out my friend!

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 11/29/2000
03:39 PM ---------------------------

Rob Milnthorp
11/28/2000 07:13 PM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Re: Q4

Dave, Origination & Finance has booked roughly C$8MM Quarter to Date.

For the remainder of the quarter, I will attempt to give you a break-down
based on probability:

"Highly Likely"
Done Deals    C$8MM
Papier Masson Service Fee Income C$1MM
PCOG Strategic Alliance Extension C$2MM
Chippawa Capacity Assignment  C$1MM
Misc. Marketing Deals   C$1MM
Total     C$13MM

"Probable"
Papier Masson Write-up/Monetization C$10MM (ECC's share only)
MAP Auction    C$2MM
Blue Range Final Dividend  C$1MM
Calpine Capacity Assignment  C$2MM (ECC's share only)
Total     C$15MM

"Unclear"
Tax Mitigation    C$10MM
Turbine Sale    C$2MM
Clarica Funding Deal for PPA  C$1MM
Total     C$13MM

Papier Masson is proceding nicely,as the owners have agreed to sell the asset
. The owners have also agreed to a structure in principle, whereby they have
determined a range that they are willing to sell at. If enron exceeds the
range, they are bound to sell it to Houston P&P group. If we bid inside the
range they then have 8 weeks to shop us, and if they dont receive any offers,
enron buys the mill at our bid less C$5MM. If they shop us and receive a
third party offer, they pay enron a break fee of C$5MM. If they close with a
third party, we receive an additional C$10MM. At a minimum, this provides us
with a fair market valuation by an independent/outside party that we can use
as our basis for writing up the asset. Secondly, it allows the P&P group to
bid without being a stalking horse as it provides for hefty break fees and
significant earnings on closing.

With regards to tax mitigation, I will have a better idea by the end of this
week. The tax guys are up from Houston and we will be working on it the
remainder of the week.

fyi...British Energy is now worth >C$100MM at the desk's bid. We are still
working toward a May 1, 2001 market opening. Support for a may 1 start is
mounting and has become a very public topic consistently referring to May 1.

Regards
Milnthorp

David W Delainey
11/28/2000 01:05 PM
To: Rob Milnthorp/CAL/ECT@ECT
cc:
Subject: Q4

Rob, can you give me a view on where you stand for fourth quarter from an
orig point of view ie) deals and value.

Regards
Delainey


Forwarded as a follow-up on my e-mails earlier today (Mary: AEP's effeort to trim out the CSA formthe Master Netting Agr.). --David

 -----Original Message-----
From: 	dtmusselman@aep.com@ENRON
Sent:	Wednesday, October 31, 2001 1:01 PM
To:	Sager, Elizabeth
Cc:	Portz, David; dtmusselman@aep.com; Bradford, William S.; fhilton@aep.com; lrgroff@aep.com
Subject:	RE: form of master netting

Attached is a redline of the Master Netting Agreement.  We are narrowing it
to limit it to being a set off agreement.  In this way we can avoid having
to go through the threshold issues and collateral management issues, which
in light of the fact we don't have a Collateral Annex are not
insignificant.  Please review it and call me with you comments.  We are
continuing our review and may have additional changes.  In addition, we are
complying a list of the AEP companies which will need to be included.(See
attached file: 86034.DOC)

David Musselman
614.324.5047

------------------------------------------------------------------------------------------------

This e-mail message from the Legal Department of American Electric
Power is for the sole use of the intended recipient(s) and may contain
confidential and privileged information.  Any unauthorized review, use,
disclosure or distribution is prohibited.  If you are not the intended
recipient, please contact the sender by reply e-mail and destroy all
copies of the original message.
 - 86034.DOC


Thank you for volunteering to participate in the Interview Process of the
January 15 Associate Super Saturday.  Our team is working on the weekend
arrangements and will deliver your information packet to you Thursday,
January 15.  If you have any questions, please let Elizabeth Boudreaux know
at x3-6176.

Thank you!
Ginger Gamble
Manager
Associate & Analyst Program


Sally has changed the time of her Thursday morning meeting to 8:30 - 10:30 AM
(previously scheduled 8:00 - 10:00 AM).  Please let me know if you can't make
this new time.  Topic for meeting:  information from her ENA Executive
Offsite and also a brainstorming session.

Thanks,
Patti x39106


Debra,  Attached are the requested changes to Citations Enfolio Spot Contract.

----- Forwarded by Gerald Nemec/HOU/ECT on 04/24/2001 03:01 PM -----

	Tyrell Harrison@ENRON
	04/24/2001 02:34 PM

		 To: Mark Whitt/NA/Enron@Enron
		 cc: Gerald Nemec/HOU/ECT@ECT
		 Subject: Enfolio Contract comments

Tyrell Harrison
303 575 6478
----- Forwarded by Tyrell Harrison/NA/Enron on 04/24/2001 01:33 PM -----

	"Alan Koelemay" <akoelemay@cogc.com>
	04/24/2001 11:03 AM

		 To: "Tyrell.Harrison@enron.com" <Tyrell.Harrison@enron.com>
		 cc:
		 Subject: Enfolio Contract comments

Tyrell, here are comments from legal review.  Give me a call @
281-517-7366 after you have reviewed.  Thanks

   * General:  Add after Citation Oil & Gas Corp. a Delaware
     corporation, for itself and for any current and future affiliated
     companies, including, but not limited to, Citation 1987, 1987-II,
     1989, 1994 and 1998 Investment Limited Partnerships, Texas limited
     partnerships of which Citation Oil & Gas Corp. is the general
     partner.
   * In the first paragraph, April needs to be changed to May.
   * Article 2, 2.3. Equipment and Transaction Tape.  In the first
     sentence of Section 2.3 the second "Company" shall be deleted and
     "Company and Customer" substituted.
   * Article 2, 2.4 Confirmations.  In the first sentence of Section 2.4
     the word "may" shall be changed to "will".
   * Appendix "1" Confirmation.  Delete the words "an invoice or a check
     remittance".
Tyrell, here are comments from legal review.  Give me a call @ 281-517-7366
after you have reviewed.  Thanks
General:  Add after Citation Oil & Gas Corp. a Delaware corporation, for
itself and for any current and future affiliated companies, including, but
not limited to, Citation 1987, 1987-II, 1989, 1994 and 1998 Investment
Limited Partnerships, Texas limited partnerships of which Citation Oil & Gas
Corp. is the general partner.
In the first paragraph, April needs to be changed to May.
Article 2, 2.3. Equipment and Transaction Tape.  In the first sentence of
Section 2.3 the second "Company" shall be deleted and "Company and Customer"
substituted.
Article 2, 2.4 Confirmations.  In the first sentence of Section 2.4 the word
"may" shall be changed to "will".
Appendix "1" Confirmation.  Delete the words "an invoice or a check
remittance".


Michael,
 Please note that the footer is wrong on the 1999 MTBE doc.  It should be
98002gctr.doc instead of 98002fctr.doc.
Please let me know if you need anything further.


I am unable to send you those DynegyDirect docs because my file is missing.
I have tried unsuccessfully to locate it, so I am contacting the Online Team
right now trying to get copies from them.  As soon as I get copies I will get
you copies.
----- Forwarded by Tana Jones/HOU/ECT on 01/09/2001 11:34 AM -----

	Leslie Hansen
	01/04/2001 10:14 AM

		 To: Tana Jones/HOU/ECT@ECT
		 cc: William Frederking/HOU/EES@EES
		 Subject: DynegyDirect ETA

Tana:

Please send a copy of the executed DynegyDirect ETA with Addendum between
Enron North America and Dynegy to Will Fredercking at EB854B.

Thanks.

Leslie


Mary, sorry for not getting back to you soooner.

Of the three concepts, only (i) Market Opening condition is proving sellable,
and then only on the basis the it is bilateral and for physical
transactions.  The other 2 concepts:  (ii) modified Market Disruption; or
(iii) suspension of obligations if Enron is subject to
judicial/regulatory/legislative action (intended to address Project Stanley),
are proving to be unworkable concepts.  I believe these latter 2 issues and
Market Opening Risk for financials will be resolved commercially as something
that will be lived with.  The traders/marketers have all three concepts
however.

With repsect to the summary of deals that may be subject to Market Disruption
as a result of changing legislation or Pool Rules, as we previously
discussed, I am not sure where that work product was going, other than
somebody (I believe Lavo) wanted the summary for information purposes (i.e.
as the deals were already done, the risk is what it is).  If there is some
other impetus for your report and I need to do something further, please let
me know.

Many thanks for all of the hard and thoughtful work.

Peter.

MARY COOK
12/04/2000 08:46 AM
To: Jeffrey T Hodge/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT, Greg
Johnston/CAL/ECT@ECT, Mark Powell/CAL/ECT@ECT, Derek Davies/CAL/ECT@ECT
cc: Mark Taylor/HOU/ECT@ECT
Subject: Canadian Power Confirms

Attached is a redraft of the three proposed points for inclusion in each of
financial and physical power confirms.  Please review and advise of any
further comments or thoughts.

It is my understanding that it has been decided that Canada wants to negate
Market Disruption concepts on the basis of changes to EUA or Pool rules.  I
have also negated force majeure claims on the same basis (typically not apt
in financial--however, since it could be argued I added it in the financial
confirm language as well).  Question:  Would we also want to add "any other
excuse of performance" to this concept?  Such language would afford a broader
sweep in respect of various claims, however, (i) the sweep may be too broad
in light of it covering any change in the EUA or Pool rules and (ii)
ultimately, we may want some flexibility to argue other points.   Advise.

Under Performance Suspension the intent is to carve out the "trade" for
suspension, while leaving the other aspects of the masters/gtcs in place,
such as bankruptcy and other termination events.

Mary

Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com


you're a doll.  thanks. on this one, feel free to control!  even if Cameron
doesn't go up, prentice and i likely will, which means that we'll be stopping
by napa (if you guys don't mind).


Beverly,

I am copying Steve Kean who will be facilitating this meeting in hopes that
Mark can review his people and go home at a decent hour!  Has Susan given you
the necessary information for Mark to call in?  If not, please let me know so
I can forward the details to you.

Steve - can you confirm that Mark can provide his rankings early in the
meeting??  Please advise.

Regards,
Michelle

Beverley Ashcroft
12/12/2000 05:02 AM
To: Michelle Hargrave/HOU/ECT@ECT
cc:
Subject: VP PRC PRE RANKING - 14TH DECEMBER 2000

Good Morning Ms Hargrave,

I am contacting you on behalf of Mark C Schroeder regarding the VP PRC Pre
Ranking meeting which is taking place on 14th December 2000.

Susan Wimberley has kindly given me your name re the schedule,  2.00pm your
time is approx. 8.00pm our time here in the UK, hence I understand that
Mark's contribution to the meeting may take place at the beginning.

If you could come back to me to confirm this it would be most appreciated.

Looking forward to hearing from you in due course.

Regards,

Beverley


Please run the minibook requested below and forward to Ellen.

Thanks,

Errol
---------------------- Forwarded by Errol McLaughlin/Corp/Enron on 02/09/2001
10:56 AM ---------------------------

	Enron North America Corp.

	From:  Larry Joe Hunter @ ECT                           02/09/2001 08:50 AM

To: Kam Keiser/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, David
Baumbach/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON, Darron C
Giron/HOU/ECT@ECT
cc: Ellen Wallumrod/NA/Enron@ENRON, Richard Deming/NA/Enron@Enron

Subject: CoEnergy Trading Company

Please forward to Ellen Wallumrod the MTM valuation(mini-book) for all
CoEnergy Trading Company deals as of Dec 31, 2000.  If you can export into
excel and forward by e-mail, that would be appreciated.

Thanks,
Joe


Are y'all sober yet?

Let me in on what's going on with y'all.

I can see Ken and his boys going to jail. Bend over.

Murph.

Timothy E. Murphy
832.676.4900
832.676.1451 (fax)
tim.murphy@elpaso.com

******************************************************************
This email and any files transmitted with it from the ElPaso
Corporation are confidential and intended solely for the
use of the individual or entity to whom they are addressed.
If you have received this email in error please notify the
sender.
******************************************************************


---------------------- Forwarded by Ami Chokshi/Corp/Enron on 05/30/2000
09:06 AM ---------------------------

"Jacqueline Blanchard" <Jacqueline.Blanchard@dvn.com> on 05/30/2000 08:46:45
AM
To: <Ami.Chokshi@enron.com>
cc:

Subject: SMI 23

Ami,

Please be advised of the revised availability on SMI 23. Please see attached
sheet.

Thank you,

Jacqueline Blanchard
Contract Analyst
Devon Energy Corporation
(405) 228-4204
(405) 552-4664
jacqueline.blanchard@dvn.com
 - TEXT.htm
 - SMI 23.xls


Congrats on the beautiful baby.  Let's get together soon, if even for coffee
in the afternoon.  Call
me at x3-6320 when you get a chance.

Kevin


Britt

I refer to the List of Samples I crculated by fax yesterday (copy attached
for your easy reference).

The Batangas samples referred to in Ref. Page 3 have arrived at SGS
Singapore. SGS Philippines has explained to Eric why some containers are not
full :-

The individual tank samples were drawn ex Pacific Virgo and put into
containers but were not sealed. They were transported to the Subic Bay lab
where ship's composite samples were made for testing by mixing the samples.
The remainder was put into containers and sealed. One ship's composite sample
was tested. Parts of some other sealed samples were used (ie. seals broken)
for verification tests. The remainder were re-sealed, hence some containers
are not full.

Please advise whether you wish for us at this juncture to enquire with SGS
Philippines about the results/raw data of the verification tests.

Regards
Matt


Dear Evening MBA Students,

This is the second announcement regarding our plans for the EMBA Seminar in
International Business. Much of this message is a repeat of the initial
one. But some points have been added.

NEW MATERIAL

1. As of today (December 7) we have received 30 deposits from interested
students. Should you be interested in participating and have not yet
applied, please do so as soon as possible, but in any case before the
December 15 deadline.

2. Regarding the possibility of visiting Cuba, some of you have asked about
the legality of this. Please note that I have a license from the US Dept.
of the Treasury that permits me to send students enrolled in a legitimate
course, for credit, to Cuba under certain conditions.

3. The current political situation in Indonesia is uncertain. However, my
sources there indicate that it should be OK for us to visit there if we
decide to do so. But, if the situation worsens we would alter the itinerary.

4. Some applications have been submitted without a preference for
destination. YOU MUST indicate your priority. You can rank all three
destinations if you wish, but you must indicate, at a minimum, your
priority for program A or B. Should you not be selected for your first
choice you will be transferred to the appropriate priority pool of your
second choice.

REPEAT

For those of you unfamiliar with this course, please see
http://www.haas.berkeley.edu/groups/HaasGlobal/NGcourseoutline.htm for the
2000 version that looked at Ghana, Belgium and the Netherlands or
http://www.haas.berkeley.edu/groups/HaasGlobal/JVcourseoutline.htm for the
1999 version that included Japan and Vietnam.

For 2001 we are going to try something slightly different. We will have two
distinct programs - one will be a repeat of last year's and the other will
venture into new territory. The details are as follows. Please note that
everything mentioned below is still tentative and subject to change or
cancellation.

PROGRAM DESCRIPTIONS

Both programs will commence with a series of classes, at Haas, in June.

Program A, led by Diane Dimeff will retrace the itinerary of the 2000
program to Ghana, the Netherlands and Belgium. The approximate dates for
the travel portion will be Saturday, July 7 through Saturday, July 21.

Program B, led by Sebastian Teunissen will consist of one of two possible
itineraries, depending on student demand:

itinerary 1: Cuba, Panama and Venezuela (or Costa Rica.)
itinerary 2: Australia and Indonesia.

Travel for program B will also start on approximately July 7 and end on
approximately July 21.

Costs for the programs are expected to be approximately equal to those
charged in previous years ($4,600), with the exception of the
Australia/Indonesia option. If this program is selected the final cost is
likely to be roughly $1,000 higher due to increased air fares. Final costs
will be determined once itineraries are set.

As you can see, planning is still in the early stages. But, before we go
much farther we need to know who is interested in participating. So, we
need to receive expressions of interest, in the form of a refundable $100
deposit from interested students.

APPLICATION PRIORITIES

Students will have different priorities depending on seniority. Priorities
are as follows:

Top Priority - both programs - students in fourth semester or higher in
January 2001 who HAVE NOT participated in the program in a previous year.

Second Priority - Program B only - students in fourth semester or higher
who did participate in the program in a previous year. These students are
not eligible for program A.

Lowest Priority - both programs - students in second or third semester.

Each group is limited to a maximum of 15 students.

APPLICATION PROCEDURE

Please submit, to the Evening MBA office, a check in the sum of $100
payable to UC Regents together with the following information, no later
than December 15, 2000.
- Name
- Semester level as of January 2001
- Whether or not you have previously participated in the program
- Choice of program: A or B (If you choose program B please also indicate
your preferred destination: Latin America or Australia/Indonesia.)
- e-mail address

Once we have a clear indication of preferences the final details will be
planned and announced. The announcement will likely be made in January. At
that time you will be advised of the program for which you are eligible.
You will then be asked to increase your deposit by $900 and the entire
$1,000 deposit becomes non-refundable.

OTHER ISSUES

Please check your passport to ensure that it expires no earlier than
December 31, 2001. If it does please renew it now. Passports with shorter
expirations may be rejected for visas, depending on the countries to which
you will travel.

Also, please check the visa requirements for the countries of interest for
your particular nationality. This may have a bearing on the program that
you select.

You might wish to check out the US State Department Consular Information
Sheets and Travel Warnings at http://travel.state.gov/travel_warnings.html
before applying.You may also wish to review health information at
http://www.tripprep.com/ or at http://www.cdc.gov/travel/.

Should you have any questions please contact me.

Regards,

Sebastian
===============================
Sebastian Teunissen
Director of International Affairs
Haas School of Business
University of California, Berkeley
Berkeley, California 94720-1900 USA
Tel:   (510) 643-4999
Fax:  (510) 642-8228

http://www.haas.berkeley.edu/HaasGlobal


Please send me more information on book G5.  The person that runs that book,
FTOC, is not aware of this book.  Please send me the book name and we will
try and track it down.

FYI, please send all future Central desk/Ontario desk inquires to me.  Kam
has moved to the East desk and I am now the lead for the Central.

Thanks for your help.
PL
3-7376


Tony Pryor (GPG legal) asked if we have any credentials/tickets left for die
hard democrats in the company.  I know Tony will understand if they are
already spoken for, but if we have some left that would go unused, we have a
volunteer.

How's it going?  Are you partied out yet?


sorry for the delay
---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
01/27/99 04:01 PM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  trials@optioninvestor.com (Option Investor Newsletter     Trials)
                      01/24/99 06:09 AM

Please respond to trials@optioninvestor.com
To: Option Investor Newsletter Trials <trials@optioninvestor.com>
cc:  (bcc: Mark - ECT Legal Taylor/HOU/ECT)
Subject: Sunday - Option Investor Newsletter 1 of 6

The Option Investor Newsletter  Sunday  1-24-98  1 of 6
Copyright 1999, All rights reserved.
Redistribution in any form strictly prohibited.

Posted online for subscribers at http://WWW.OPTIONINVESTOR.COM

Published three times weekly, Sunday, Tuesday, Thursday evenings.
New plays and market wrap updated daily on the website.

Entire newsletter best viewed in COURIER 10 font for alignment
******************************************************************
MARKET STATS FOR LAST WEEK AND PRIOR WEEKS
******************************************************************
       WE 1-22           WE 1-15           WE 1-08        WE 12-31
DOW     9120.67 -219.88  9340.55 -302.77  9643.32 +461.89  - 36.56
Nasdaq  2338.88 -  9.27  2348.20 +  3.79  2344.41 +152.22  + 29.52
S&P-100  610.38 -  6.08   616.46 - 19.56   636.02 + 32.08  -  3.91
S&P-500 1225.19 - 18.07  1243.26 - 31.43  1275.09 + 45.93  +  4.15
RUT      422.44 -  4.61   427.05 -  4.18   431.23 +  9.27  + 16.42
TRAN    3063.80 - 84.73  3148.53 -211.75  3360.28 +210.97  +108.48
VIX       32.85            29.75            23.88            25.41
Put/Call    .54              .56              .48              .55
******************************************************************

Big blue beat estimates but investors turned red on Friday.

The bluest of the blue chips turned red on Friday after beating
analysts estimates. Even though they posted a win on the surface
the numbers behind the numbers painted the true picture. IBM made
$.04 a share on hedging currency. What this means is the currency
of other countries went up in value compared to previous levels
and IBM either made money on their currency hedge instruments or
the currency their customers used had gone up in value over
the value assigned when the deals were first done. If you agreed
to pay 1 million Baht for a computer when the Baht was worth 125
to the dollar and by the time the computer was delivered the Baht
was worth 100 to the dollar then IBM would get a windfall profit
of +20%. The difference between 125 and 100 to the dollar. (The
numbers used are for example only and not accurate) So IBM did
not do anything to earn the extra money except be in the right
place at the right time. IBM also had less sales than expected
which did not go well with analysts.

After the smoke cleared IBM had lost -$17 for the day. -$16 bln
in market cap. IBM accounted for over -70 points of the Dow loss
for the day.

SUNW on the other hand beat estimates by $.01 and announced a
split and only closed down -.44 for the day. It really was not
the fault of SUNW. The Nasdaq was hell bent on following the Dow
down even though it made several nice runs to positive territory
during the day. Sun had a backlog of $770 million in orders and
more coming in every day. The CEO said sales were expected to
increase as much as +20% this year. We expect SUNW to continue
upward with any Nasdaq rally.

The Clinton problem took a hard turn on Friday. With Republicans
starting to defect and looking for an easy way out to avoid more
negative press, the prospects of a dismissal look better every
day. This would help the market some as "no change" is typically
considered good news. The Byrd motion for dismissal is not likely
to pass but it set the tone for the future votes.

The real culprit again on Friday was the fallout from the Brazil
problem. Continued rumors of other countries possibly devaluing
their currencies put a cautious tone in the market ahead of the
weekend. Even though many very knowledgeable analysts said the
possibility of China or Hong Kong devaluing based on the current
Brazil problem was "very, very remote" the more safety conscious
investors were moving to the sidelines before the close. The
Brazil Bovespa recovered from earlier losses to close down only
-131 or -1.8%. All the European exchanges had closed down on
Friday as the increasing worry had investors taking profits there
also.

Is the U.S. market going down as some bears are saying? We don't
think so, YET. Without a "tail wagging the dog" news event this
week we feel that positive corporate earnings will continue to
move the market upward. Interest rates are going to remain flat.
Inflation is flat, the economy is growing. We have no reason to
sell off. The wild card is the Brazil crisis. The DOW, OEX and
RUT are all sitting at support on their moving averages. The
market is down -522 points in the last two weeks. We are due for
another technical "relief" rally this week. With all the negative
news out Friday the fact that the Dow only lost -73 points (if
you take out IBM) is remarkable. The Nasdaq had recovered from
a -38 point early loss and traded +15 until the end of the day
"fear of darkness" sell off. This is remarkable. The buy the
dip mentality is alive and well. There was strong buying at the
close on Friday as well as the early morning dip. As long as
buyers keep filling in the holes we will continue to build a
stronger base here. Again, the wild card is Brazil and the other
Latin America countries. A news flash on Monday morning could
wipe out the market in a heartbeat. Until the Brazil Real gains
some strength traders should consider playing smaller positions.
You can still capture some gains but have less at risk should
lightning strike.

We are at a pivotal point in the market. With all the major
averages setting on support it will take more bad news to push
us down and less good news to make it go up. There is still
lots of buyers in the market. As CNBC reported Friday there
is a huge "book" of buy orders at $2-$3 less than current prices
for many blue chip stocks. As long as these limit buy orders
stay on the books the chances of a substantial drop are slim.
Institutions want to buy but not at the top of the market. They
are using the "target shooting" approach we always suggest.

The target shooting approach to opening a position is simply
placing a limit buy order at -25 to -50% less than the current
ask and waiting for a dip to fill your order. Sometimes you
can wait days for a dip but in the current market climate we
are seeing dips almost every day. Normally the dips are too
quick to react with manual orders but if you have an existing
limit order you can get filled when it happens and sometimes
at the low for the day. For instance the SUNW FEB-100 Call
had a low for the day on Friday of $5.00 and a high of $8.00.
It closed at $6.50. The previous close was $7.50. A limit
order for -25% less than the previous close would have been
$5.63. You would have filled at $5.63 and could easily have
sold again for a +15% to +25% profit.

The AOL-140 Call closed Thursday at $14.00. A -25% limit order
would have been $10.50. On Friday the low for the day was $10
and the high was $14.88. You would have filled at $10.50 and
could have easily sold again for +20 to +30% profit the same
day.

Most traders would have bought at $13 or more after AOL started
back up. They would be thinking. OK, now it is moving, I will
jump in now. While this is not a bad idea it is not as good
as buying cheap. Once you make a decision to buy AOL or SUNW
or whichever stock you want, then the next decision is WHERE
to buy. If you use this method you will make fewer plays
because not all options will dip -25% in one day but the plays
you do make will be much more profitable. You will normally
be buying in at the low for the day. Would you like to be in
a position cheaper than everybody else?

We have had several serious rumors that Microsoft is going
to announce a 2:1 split this week. While the MSFT CFO had
said in an offhand remark several weeks ago that he would
"like to wait" until the $200 range before they split again,
I am being covered in emails that claim they will split
either Monday after the close or sometime during this week.
I have never had the volume of email on a split rumor that
I had on MSFT this week. I own MSFT currently and would
really be a happy trader if this comes to pass.

Watch the news Sunday for signs of the Brazilian flu and
plan your trades accordingly for Monday.

Good Luck

Jim Brown
Editor

***********
JIM'S PLAYS

The week started out great with Microsoft blowing away earnings
and gapping open the next day. I had broken a cardinal rule and
held over in anticipation of a split and got the earnings gap
as a surprise. THIS IS A VERY BAD IDEA!! I was forced to hold
some SUNW over earnings as the market was dropping too fast
and my limit orders never filled. Ouch! Fortunately Sun did
not do the IBM thing and actually traded up on Friday. If we
can get a Nasdaq rally Monday I might be able to get out of
the position alive. Other than the those two major trades
early in the week I did almost nothing. Friday I bought the
dip on faith and still feel pretty good about it. Now if
only Brazil does not blow up over the weekend.

Stock trades
Sold 5000 KMAG @ $14.69 cost 13.56   Profit $5,650
Sold 5000 SRCM @ $22.25 cost 22.75   Loss   -2,500
Sold 4000 PAIR @ $10.50 cost 10.50   Even        0
                                     Total  +3,150

Option trades
Sold (10)  OEX-FEB-630 CALLS OEY-BF @14.25 cost 13.00 + 1,250
Sold (25) MSFT-FEB-150 CALLS MSQ-BJ @18.88 cost 12.00 +17,200
Sold (100)SUNW-FEB-100 CALLS SUQ-BT @ 8.94 cost  8.19 + 7,500
Sold (4)   OEX-FEB-610 CALLS OEY-BB @30.00 cost 25.00 + 2,000
Sold (4)   OEX-FEB-625 PUTS  OEY-NE @24.06 cost 17.25 + 2,724
Sold (25) VOLVY-FEB-30 CALLS VQY-BF @ 2.75 cost  3.06 -   775
                                           Total      +29,899

Bond Spread

Sold   (10)MAR-129 calls, Sold   (10)MAR-125 puts
Bought (10)MAR-131 calls, Bought (10)MAR-123 puts
Net credit 45 points or $703 per contract             $7,030

                                   Total all trades +$40,079

This looks like a pretty good week but what you don't see
is the large loss I am currently holding in SUNW. If Sun does
not rise from the ashes this week the next Sunday recap will
be very ugly.

Current positions:

Call options in MSFT, DELL, AOL, SUNW, XIRC

****************
Market Sentiment
By Pinnacle Capital Advisors

Market's Momentum Lost

Don't look now, but the powerful market has lost its momentum and
we are beginning to see several classic failed rallies develop.
You would expect the financial and airlines sectors to roll over
given that these have been under pressure and trading below
their declining moving averages.  But what about Drug and
Healthcare? These sectors have been trading higher and should
follow the Technology sector into new territory, right?  Wrong.
Pinnacle turned Bearish on these sectors this weekend over the
near-term after violating key benchmarks of (DRG /740) and (HCX
/ 720), respectively.

More problematic is the Russell 2,000 (RUT). Not only is the
small cap coming up short of last July's high, but excessive
call buying by option speculators is occurring at out-of-the
money overhead benchmark levels as reflective by our high
Pinnacle Index (14.7) for the Russell 2,000.

http://www.optioninvestor.com/marketsentiment/image28.gif

Pinnacle's short-term indicators are still flashing BEARISH
overtones over the near-term so we advise subscribers to
tightly protect their long positions.  Any questions regarding
market sentiment can be directed at:
pinnacle@optioninvestor.com

Market Sentiment at a Glance    Friday      Tues     Thurs
Indicator                       (1/22)     (1/26)   (1/28)   Alert

Pinnacle Index (OEX):
Overhead Resistance (620-635)     1.4
Underlying Support  (595-610)     1.3

Put/Call Ratios:
CBOE Total P/C Ratio               .5
CBOE Equity P/C Ratio              .4                         *
OEX P/C Ratio                     1.2

Peak Open Interest (OEX):
Puts                              610
Calls                             610
P/C Ratio                         .9

Market Volatility Index (VIX):
CBOE VIX                         32.85                        *

Investors Intelligence:
Bullish                          60.0%                        *
Bearish                          30.0%

The Power of Expectation Analysis

It has often been said that the crowd is right during the
market trends but wrong at both ends.  Measuring and
evaluating the sentiment of the crowd, therefore, can give
savvy option traders a decided edge.

Pinnacle Index
OEX                             Friday     Tues     Thurs
Benchmark                       (1/22)     (1/26)   (1/28)

                    (630-635)      2.7
                    (620-625)      1.1
Overhead Resistance (620-635)      1.4

OEX Close                       610.38

Underlying Support  (595-610)      1.3
                    (605-610)      1.0
                    (595-600)      1.9

Average ratings:
Resistance levels 2.0 / Support .5

What the Pinnacle Index is telling us:
Overhead sentiment resistance is Moderately weak at the OEX
620/635 level while the underlying support is moderately weak.

Put/Call Ratio                  Friday     Tues     Thurs
Strike/Contracts                (1/22)     (1/26)   (1/28)

CBOE Total P/C Ratio              .53
CBOE Equity P/C Ratio             .40
OEX P/C Ratio                    1.15

OEX
Peak Open Interest   Friday         Tues           Thurs
Strike/Contracts     (1/22)         (1/26)         (1/28)

Puts                 610 / 11,153
Calls                610 / 11,865
Put/Call Ratio       .94

http://www.optioninvestor.com/marketsentiment/Image29.gif

http://www.optioninvestor.com/marketsentiment/Image30.gif

VIX
Volatility Index    Major
Date                Turning Point       VIX
-----------------------------------------------------------------
October 97          Bottom              54.60
July 20, 1998       Top                 16.88
October 8, 1998     Bottom              60.63
January 11, 1998    Top                 26.38

January 22, 1999                        32.85

http://www.optioninvestor.com/marketsentiment/Image31.gif

Http://www.optioninvestor.com/marketsentiment/Image32.gif

Investors Intelligence Survey
                    Major             Percent     Percent
Date                Turning Point     Bullish     Bearish

October 97          Bottom            22.0        48.3
July 20, 1998       Top               52.0        24.0
October 8, 1998     Bottom            38.5        42.7
January 11, 1999    Top ?             58.3        30.0

January 22, 1999                      60.0        30.0   *

Market Posture
**************
As of Market Close - Friday, January 22, 1999

                   Key Support
Broad Market         /Resistance    Last    Posture/Since  Alert

DOW Industrials    9,100   9,730   9,121    Neutral   1.15
SPX S&P 500        1,210   1,280   1,225    Neutral   1.12
OEX S&P 100          600     635     610    Neutral   1.12
RUT Russell 2000     420     435     422    Neutral   1.12

NDX NASD 100       1,900   2,010   1,964    Neutral   1.21
MSH High Tech        930     980     949    Neutral   1.21

Technology
**********
XCI Hardware         830     875     871    Neutral   1.22 *
CWX Software         610     665     651    Neutral   1.21
SOX Semiconductor    360     410     393    Neutral   1.8
NWX Networking       420     450     424    Neutral   1.8
INX Internet         470     570     478    Neutral   1.8

Financial
*********
BIX Banking          650     710     647    BEARISH   1.22 *
XBD Brokerage        630     725     646    Neutral   1.14
IUX Insurance        590     620     574    BEARISH   1.21

Other
*********
RLX Retail           800     860     828    Neutral   1.8
DRG Drug             740     795     739    BEARISH   1.22 *
HCX Healthcare       720     780     717    BEARISH   1.22 *
XAL Airline          310     350     304    BEARISH   1.22 *
OIX Oil & Gas        245     260     240    BEARISH   1.14

Posture Alert

After selling off at an important failed rally benchmark, we
have turned Bearish on several industry sectors including
Banking, Drug, Healthcare and Airlines.  We caution investors
that we have received a near term reversal signal across many
sectors that many have violated their 50-day moving averages.

A detailed description of our Market Posture and its
applications can be found at:

www.optioninvestor.com/marketposture

******************
Great Expectations
By Pinnacle Capital Advisors

Great Expectations

With another wave of key corporate earnings reports due out this
week, we have highlighted below the companies that will likely
have the greatest impact on the overall market.  Keep close
track of these companies.  If they beat expectations, we are
likely to move higher.  If not, we are likely to re-test our key
support levels again.

Options traders playing the Technology sectors, watch Microsoft
on Tuesday.  Microsoft will likely dictate the climate for
the technology sector for 1Q99.

Reporting                            Estimated   Pinnacle
Date       Company                         EPS      Index

Hardware:
1/26 EMC   EMC CORP                       0.46        6.2
1/26 KMAG  KOMAG INC                     -0.41        3.8
1/27 CPQ   COMPAQ COMPUTER                0.36        8.3
1/26 XRX   XEROX CORP                     1.67        6.6

Software:
1/26 CDN   CADENCE DESIGN                 0.35        2.6
1/26 CLFY  CLARIFY INC                    0.14        4.0
1/26 CSC   COMP SCIENCE                   0.54        6.2
1/25 RMDY  REMEDY CORP                    0.24        2.4
1/27 IFMX  INFORMIX CORP                  0.11        9.1
1/27 MACR  MACROMEDIA INC                 0.10        9.8
1/28 SHVA  SHIVA CORP                     0.01        4.0
1/28 SEBL  SIEBEL SYSTEMS                 0.15        8.7
1/28 VRTS  VERITAS SOFTWRE                0.21        9.9
1/26 RMDY  REMEDY CORP                    0.24        2.6

Semiconductor:
1/26 CY    CYPRESS SEMI                  -0.01        1.6
1/28 LSI   LSI LOGIC                     -0.02        4.8

Networking:
1/26 BRCM  BROADCOM CORP                  0.18        1.2

Telecommunications:
1/25 T     AT&T CORP                      1.00        6.3
1/25 BLS   BELL SOUTH                     0.41        6.2
1/25 TLAB  TELLABS INC                    0.59        6.1
1/26 NT    NORTHERN TELECO                0.71        6.0
1/27 BEL   BELL ATLANTIC                  0.69        2.9
1/27 PAIR  PAIRGAIN TECH                  0.11        3.0
1/28 GTE   GTE CORP                       0.87        5.1
1/28 ERICY LM ERICSSON TELE               0.29        3.8
1/29 NOKA  OKIA CP-ADR A                  1.01        3.0

Internet / eCommerce:
1/26 AMZN  AMAZON.COM INC                -0.19        1.1
1/26 CYCH  CYBERCASH INC                 -0.41       11.3
1/26 EBAY  EBAY                           0.04        N/A
1/26 RNWK  REALNETWORKS                  -0.04       12.2
1/26 USWB  USWEB                          0.05       10.0
1/27 AOL   AMERICA ONLINE                 0.14        2.2
1/27 SEEK  INFOSEEK CORP                 -0.42        1.1
1/27 MSPG  MINDSPRING ENTR                0.04        7.4
1/28 NETG  NETGRAVITY INC                -0.19        N/A
1/28 BCST  BROADCAST.COM                 -0.25        N/A
1/28 GCTY  GEOCITIES                     -0.33        N/A

Financial:
1/25 AXP   AMER EXPRESS CO                1.16        6.8
1/25 C     CITIGROUP INC                  0.56        4.0

Pharmaceutical:
1/26 AHP   AMER HOME PRODS                0.44        7.1
1/26 JNJ   JOHNSON & JOHNS                0.51        6.5
1/26 MRK   MERCK & CO INC                 1.16        5.6
1/27 SGP   SCHERING PLOUGH                0.28        7.5
1/28 BAX   BAXTER INTL                    0.73        3.0
1/28 LLY   LILLY ELI & CO                 0.51        1.8

Biotechnology:
1/27 AMGN  AMGEN INC                      0.84        9.4
1/28 CNTO  CENTOCOR INC                   0.12        5.8

Airline:
1/26 LMT   LOCKHEED MARTIN                0.81        2.1
1/27 BA    BOEING CO                      0.42        1.9

Oil & Gas:
1/25 CHV   CHEVRON INC                    0.51        2.3
1/25 DO    DIAMOND OFFSHORE               0.56        3.4
1/25 HAL   HALLIBURTON CO                 0.27        6.2
1/26 BHI   BAKER-HUGHES                   0.17        1.0
1/26 TX    TEXACO INC                     0.30        5.3
1/27 MOB   MOBIL CORP                     0.54        4.2
1/28 RIG   TRANSOCEAN OFFS                0.83        2.9

Consumer:
1/25 PG    PROCTER & GAMBL                0.77        2.2
1/27 MO    PHILIP MORRIS                  0.72        4.5
1/28 KO    COCA COLA CO                   0.24        2.9
1/29 HSY   HERSHEY FOODS                  0.85        2.4
1/27 DIS   DISNEY WALT                    0.25        1.4
1/28 G     GILLETTE CO                    0.39        2.4

Excessive Optimism / Pessimism

Often times when companies release corporate earnings, the stock
will move/gap up or down depending on the level of expectation
built into the stock prior to the release date.  This level of
expectation can be measured, in part, by the Call/Put ratio and is
represented by our Pinnacle Index figure.  The average Pinnacle
Index is 2.0.  Therefore, an index appreciably higher than 2.0
reveals a high level of optimism while an index lower than 2.0
reveals a high level of pessimism.  For aggressive options traders,
we have highlighted companies reaching extreme expectation levels
below.

For example, the company with the highest and lowest expectation
reporting this week is Realnetworks (RNWK) and Baker Hughes (BHI)
with a Pinnacle Index of 12.2 and 1.0, respectively.  This
suggests that if Real Networks does not beat their estimate on
Tuesday, they are likely to sell-off.  Conversely, if Baker
Hughes beats their estimate or reports any favorable news, they
are likely to move higher.

Reporting                            Estimated   Pinnacle
Date       Company                         EPS      Index

Great Expectations:
1/26 RNWK  REALNETWORKS                  -0.04       12.2
1/26 CYCH  CYBERCASH INC                 -0.41       11.3
1/26 USWB  USWEB                          0.05       10.0
1/28 VRTS  VERITAS SOFTWRE                0.21        9.9
1/27 MACR  MACROMEDIA INC                 0.10        9.8
1/27 AMGN  AMGEN INC                      0.84        9.4
1/27 IFMX  INFORMIX CORP                  0.11        9.1
1/28 SEBL  SIEBEL SYSTEMS                 0.15        8.7
1/27 CPQ   COMPAQ COMPUTER                0.36        8.3
1/27 SGP   SCHERING PLOUGH                0.28        7.5
1/26 AHP   AMER HOME PRODS                0.44        7.1
1/25 AXP  AMER EXPRESS CO                 1.16        6.8
1/26 XRX   XEROX CORP                     1.67        6.6
1/26 JNJ   JOHNSON & JOHNS                0.51        6.5
1/25 T     AT&T CORP                      1.00        6.3
1/25 BLS   BELL SOUTH                     0.41        6.2
1/26 EMC   EMC CORP                       0.46        6.2
1/25 HAL   HALLIBURTON CO                 0.27        6.2
1/25 TLAB  TELLABS INC                    0.59        6.1
1/26 NT    NORTHERN TELECO                0.71        6.0
1/26 MRK   MERCK & CO INC                 1.16        5.6
1/28 GTE   GTE CORP                       0.87        5.1
1/28 SHVA  SHIVA CORP                     0.01        4.0

Low Expectations:
1/26 BHI   BAKER-HUGHES                   0.17        1.0
1/27 SEEK  INFOSEEK CORP                 -0.42        1.1
1/26 AMZN  AMAZON.COM INC                -0.19        1.1
1/27 DIS   DISNEY WALT                    0.25        1.4
1/26 CY    CYPRESS SEMI                  -0.01        1.6
1/28 LLY   LILLY ELI & CO                 0.51        1.8
1/27 BA    BOEING CO                      0.42        1.9

The Power of Sentiment Analysis

Last October (1998), Pinnacle Capital Advisors tracked
corporate earnings reports and advised subscribers about
the impact that excessive optimism and pessimism can have
on the stocks's performance following the release of its
quarterly earnings report.  If you recall, we identified
several stocks that reached excessive sentiment levels
including Intel (INTC) and Pfizer (PFE).

Reporting                            Estimated   Pinnacle
Date        Company                        EPS      Index

Excessive Optimism:
10/13 INTL  Intel                          .79       5.2
10/13 JNJ   Johnson & Johnson              .70       3.7
10/15 AAPL  Apple Computer                 .49       3.6

Excessive Pessimism:
10/13 JPM   JP Morgan                     1.08        .4
10/12 C     Chrysler                       .87        .7
10/14 PFE   Pfizer                         .57        .9
10/13 GM    General Motors                 .98-      1.2
10/16 G     Gillette                       .30       1.3
10/14 MER   Merrill Lynch                  .56       1.5

The first is Intel (INTC).  The semiconductor powerhouse had
rallied ahead of its earnings report Tuesday night (10/13) and
closed at $83.88.  What's interesting is that they beat the
street's estimate by 9 cents and yet the stock gapped down
the next morning (10/14).  And despite the 330 point Dow rate
cut rally on Thursday (10/15), the stock had trouble taking
out its recent previous high of $85.88.  Here, our sentiment
analysis alerted subscribers that expectations had gotten
ahead of itself and that despite the good news, the stock had
trouble advancing.

We saw the opposite in the case of Pfizer (PFE).  This blue
chip Pharmaceutical company had sold off more than 20% from
its summer high ($120) to close at $95.50 before its release
Tuesday night (10/13).  Here, Pfizer actually missed its
estimated earnings by a nickel.  Although the stock initially
gapped down the next morning, it quickly rallied and closed
higher. Our message: it's all about understanding and
managing expectations.

Pinnacle Index

What is the Pinnacle Index.  It is simply the put/call ratio
at key overhigh benchmark levels.  Typically, there should be
two (2) calls for every one (1) put.   So when this ratio
reaches extremes levels, it can presage key turning points in
the stock.  The average Pinnacle Index, therefore, should read 2.0.

One of the key components that separate OptionInvestor.com
from any other advisory services is our sentiment indicator
or Pinnacle Index.  The Pinnacle Index is designed to measure
the level of overhead resistance at key overhead benchmark
levels. This analysis can give savvy option traders a jump on
other traders.

It's important to note that the Pinnacle Index, like many
sentiment indicators, is a contrarian indictor.  This means
that the stock can and will go higher or lower despite what
our sentiment indicators might suggest.  However, our
experience has shown that the market is subject to a
precipitous sell-off if the Pinnacle Index reaches extreme
levels.

Coming Events
*************
Monday:

Existing Home Sls Dec      Forecast: 4.85M   Previous: 4.90M

Tuesday:

LJR Redbook       1/23     Forecast:  --     Previous:  1.9%
BTM/Schroeders    1/23     Forecast:  --     Previous:  0.3%
API Oil Stocks    1/23     Forecast:  --     Previous: 321.9M

Wednesday:

None

Thursday:

Jobless Claims    1/23     Forecast:  --     Previous: 346K
Durable Goods     Dec      Forecast:  0.4%   Previous: 1.0%
Employment Cost   Q4       Forecast:  0.9%   Previous: 1.0%

Friday:

GDP               Q4       Forecast:  4.0%   Previous: 3.7%
CPMI              Jan      Forecast:  --     Previous: 50.9
Michigan Cons Sent Jan     Forecast:  --     Previous: 100.5

HOW TO SUBSCRIBE
****************

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at any time but your subscription will not start until your
free trial is over.

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and click on "subscribe" to use our secure credit
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You may also fax the information to: 303-797-1333

DISCLAIMER
**********
This newsletter is a publication dedicated to the education
of options traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock or option but an information resource to aid the
investor in making an informed decision regarding trading in
options. It is possible at this or some subsequent date, the
editor and staff of The Option Investor Newsletter may own,
buy or sell securities presented. All investors should consult
a qualified professional before trading in any security. The
information provided has been obtained from sources deemed
reliable but is not guaranteed as to accuracy or completeness.
The newsletter staff makes every effort to provide timely
information to its subscribers but cannot guarantee specific
delivery times due to factors beyond our control.


fyi

 -----Original Message-----
From: 	Nelson, Roderick
Sent:	Monday, November 19, 2001 11:25 AM
To:	Heard, Marie; Shackleton, Sara
Subject:	FW: BNP Paribas Deals

[1] ECTRL and BNP Paribas - Physical Gas Trading:  The attached are confirms (for phone executed and EOL executed trades) which covers all physical gas trading in Europe. (Info provided by Pavi Sale in UK gas documentation, 44 207 783 2347, if you have further questions.)

Phone deal	EOL deal

[2] ECL and BNP Paribas - Credit Default Swap Trading:  Blair Van Zant (RAC-Credit) will fax the schedules of the ISDA which governs this trading. (Please call Blair direct at 44 207 783 6571 if you do not receive within the half-hour.)

[3] EML and BNP Paribas - Metals Trading:  Simon Hockenhull (RAC-Credit) is investigating.  Probably confirmed under GTC for financial metal trading.  May not have today.


---------------------- Forwarded by Scott Neal/HOU/ECT on 04/23/2001 12:39 PM
---------------------------

"scott neal" <sneal12@mindspring.com> on 04/20/2001 08:37:28 PM
To: <Scott.Neal@enron.com>
cc:
Subject:

The Dow  topped out in February of 1966 at 995. By September of that year the
Dow had  tumbled to 744. The Dow then rallied to a high of 943 in September
of '67. By  March of '68 the Dow had fallen to 825, only to climb to a highly
speculative  peak of 985 in December of '68. The Dow then sank to 631 in
December of '70.

By April of '71 the Dow had climbed back to 950, only to fall to 869 in
February of '72. A big rally then took the Dow (unconfirmed) to a record high
of  1051 in January of '73, turning everyone bullish. But by December of '73
the Dow  had collapsed to 788. Think that was bad - by December of '74 the
Dow had sunk  to a bear market low of 577. At that time, the gurus and
geniuses of Wall Street  were predicting a 250 Dow and many were talking
openly about the end of  capitalism. Of course, that was the bottom

And that's  the way the greatest bear market since the Depression worked its
way down. By  late 1974 investors were dizzy, they were desperate, they were
wrung-out, they  had left Wall Street, many for  good.


Gary,
We need to have two more books created as soon as possible.  These need to be
set up the same as the others(not as PA books) Kam requested (moving from and
Intra book to an FT book).

 FT-INT-CNT-TRANS
 FT-INT-EMWMEH

Call if you have any questions.  Thanks

DG
3-9573


-----Original Message-----
From: Michelle Robinson [mailto:kkboers@hilconet.com]
Sent: Wednesday, November 28, 2001 10:47 AM
To: Mike Griffith
Subject: Fw: Satan

----- Original Message -----
From: "Sheila K. Robbins" <SRobbins@Bioassay.com>
To: "Michelle Robinson" <kkboers@hilconet.com>; "Debby L. Bell"
<bell4@bcsnet.net>; "Pat Savage" <PrSavage@aol.com>
Sent: Tuesday, November 27, 2001 2:56 PM
Subject: Fw: Satan

>
> ----- Original Message -----
> From: "Jennifer Tullous" <JTullous@wmgltd.com>
> To: <Alex4King@hotmail.com>; <Tullous@lewis.army.mil>;
> <Michelle.Tullous.HMBM@statefarm.com>; <Tom_Janell@the-CIA.net>;
> <JMTullous@yahoo.com>
> Sent: Tuesday, November 27, 2001 3:17 PM
> Subject: Fwd: Satan
>
>
> > Jennifer Tullous
> >
> > ----- Forwarded by Jennifer Tullous/WMG on 11/27/01 01:08 PM -----
> >
> > Satan
> >
> > A few minutes before the church services started, the
> > townspeople were sitting in their pews and talking.
> >
> > Suddenly, Satan appeared at the front of the church.
> > Everyone started screaming and running for the front
> > entrance, trampling each other in a frantic effort to
> > get away from evil incarnate.
> >
> > Soon everyone had exited the church except for one
> > elderly gentleman who sat calmly in his pew without
> > moving, seeming oblivious to the fact that God's
> > ultimate enemy was in his presence.
> >
> > So Satan walked up to the old man and said,
> > "Don't you know who I am?"
> > The man replied, "Yep, sure do."
> >
> > "Aren't you afraid of me?" Satan asked.
> > "Nope, sure ain't." said the man.
> >
> >  "Don't you realize I can kill you with a word?" asked Satan.
> > "Don't doubt it for a minute," returned the old man, in an even tone.
> >
> > "Did you know that I could cause you profound, horrifying, physical
> > AGONY for all eternity?" persisted Satan.
> > "Yep," was the calm reply.
> >
> > "And you're still not afraid?" asked Satan.
> > "Nope."
> > More than a little perturbed, Satan asked,
> > "Well, why aren't you afraid of me?"
> >
> >
> >
> > The man calmly replied, "Been married to your sister for over 48 years."
> >
> >
> >
> >
> >
> >
> >
> >
>
>


Good morning, Mike.  What time is the meeting?

Rosie

To: Kenneth Lay/Corp/Enron@ENRON
cc:
Subject: EGM - all company meeting

Ken,

Per my voicemail, we are having an all employee meeting on next Monday at the
Hyatt Regency.  The purpose of this meeting is to pull everyone together for
an update on EGM and a brief presentation from all the business units within
EGM.  This includes about 1 hour of business and then drinks and food - we
expect about 500 people.

We have made a lot of progress on changing the nature and profitability of
these businesses and we want to make sure everyone sees just how far we have
come in a few months.

I believe they will be motivated to see the growth and profitability.  We had
a record Q1 with $100 million of gross margin.  That was 50% of what they
made in all of 2000.  Combined with the fact that in December of 2000 alone
we made $87 million in gross margin, I believe it will have a big impact.

If you could attend the meeting even for a few minutes it would go a long way
in helping us drive our other point which is that the EGM businesses are now
core to Enron and has the attention of both you and Jeff.

Thanks for considering this and let me know if you need any other information
or assistance.

Mike


Start Date: 12/23/01; HourAhead hour: 10;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001122310.txt


Hello Lyn ,
How are you? Certainly hope you enjoyed the holidays.
I HAVE NOT RECEIVED THE COLOR PRINTER AS OF YET.
Could you please provide me with information concerning this.

                                                              Thanks
                                                           Kevin Moore


Please see the attached.

ds


Guys, attached you will find the final plan to meet our origination targets
for Q4 consistent with our discussions.  It is important that we hit our
numbers in order for Enron to meet its targets for the year.

Regards
Delainey


Gareth:

As you know we are in the process of selling the Powder and Wind River
Assets.  To consumate the transaction with NB, we are going to:

Powder River

 - Sell PR-B LLC's 99.99% B ownership interest in ECT-PR LLC
 - Sell PR-Z LLC's 0.01% A ownership interest in ECT-PR LLC

Since Condor owns 99.99% of B Shares in PR-B, I would presume that, PR-B can
go ahead and sell the shares (subject to the right price) as long as it gets
Condor's consent; i.e. Condor will not be a signatory to the Purchase and
Sale Agreement  with NB.  PR-B would also have to get consent from ENA who is
the other 0.01% owner of PR-B LLC, but that is no problem.

Wind River

 - Sell WR-B LLC's 99.99% B ownership interest in ECT-WR LLC
 - Sell WR-Z LLC's 0.01% A ownership interest in ECT-WR LLC

Since Condor owns 99.99% of B Shares in WR-B, I would presume that, WR-B can
go ahead and sell the shares (subject to the right price) as long as it gets
Condor's consent; i.e. Condor will not be a signatory to the Purchase and
Sale Agreement  with NB.   WR-B would also have to get consent from ENA who
is the other 0.01% owner of WR-B LLC, but that is no problem.

I attach the diagram.  I would appreciate your confirmation (or lack of it)
of my understanding.

Thanks

Ranabir


these looks good to me except for the lower case "h" in the Hub phys that we
already talked about.

fletch


(Please accept our apologies if you've already completed the Energy Industry Survey. Send a reply with "Did it" in the subject line to avoid future reminder messages.)

Dear Energy Industry Executive,

YOUR INPUT IS VERY VALUABLE. Over the past week or so, you've been invited to participate in a very important survey that will significantly improve the information products available to you in the power and energy industry.

Because we haven't heard from you yet, we're adding more prizes to encourage participation. There are now 12 prizes you could win; we've added 4 more inducements to the original 8 prizes.

YOUR CHANCE OF WINNING IS HUGE. We're hoping to draw a total of 200 respondents from this sector of the industry. When we receive your fully completed questionnaire, your e-mail address will one among 30 in a drawing that could bring you one of the 12 prizes. Those odds aren't bad at all! The prizes include:

-- FOUR $100 gift certificates
-- EIGHT $50 gift certificates

IF YOU WIN, you can choose from the following list where you'd like to spend your gift certificate:

-- Amazon.com,
-- REI.com,
-- GOLFDISCOUNT.com,
-- CABELLAS.com,
-- fogdog.com, or
-- a general American Express gift certificate.

Just click on the long blue URL listed in the section below this letter to connect to the welcome page for the survey.

THE DEADLINE FOR SUBMITTING YOUR SURVEY IS FRIDAY, SEPTEMBER 7.

Thanks for your participation, and we wish you the best of luck in the
drawing!

Arthur E. Heimbach, Ph.D.
President
Heimbach Research
art@heimbachresearch.com
www.heimbachresearch.com

MORE DETAILED INFORMATION
This important survey is being conducted to help develop the next generation of forecasts and reports for power demand, supply, and pricing. This is your opportunity to have direct impact on the type and quality of strategic information you'll be able to purchase in the future.

The results of this study will help develop products better suited to your needs, improve your effectiveness at work, and generally make your job easier.

The questionnaire should take you around 10 to 15 minutes to complete. Only fully completed questionnaires will qualify for the drawing.

Go to: http://www.zoomerang.com/survey.zgi?35X39V5E8KY9E6QV0KCPGTR7
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---------------------- Forwarded by Darron C Giron/HOU/ECT on 04/11/2001
09:10 AM ---------------------------
From: Russell Diamond/ENRON@enronXgate on 04/11/2001 09:04 AM
To: Janie Aguayo/HOU/ECT@ECT, Diane Anderson/NA/Enron@Enron, Derek
Bailey/Corp/Enron@ENRON, David Baumbach/HOU/ECT@ECT, Jean Bell/HOU/ECT@ECT,
Patricia Boulanger/CAL/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Julie
Brewer/NA/Enron@Enron, Lesli Campbell/ENRON@enronXgate, Celeste
Cisneros/NA/Enron@Enron, Sharon Crawford/CAL/ECT@ECT, Richard
Deming/NA/Enron@Enron, Russell Diamond/ENRON@enronXgate, Cindy
Feldman/CAL/ECT@ECT, Darron C Giron/HOU/ECT@ECT, Veronica
Gonzalez/ENRON@enronXgate, Jeffrey C Gossett/HOU/ECT@ECT, Walter
Guidroz/ENRON@enronXgate, Larry Joe Hunter/HOU/ECT@ECT, Kam
Keiser/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Errol
McLaughlin/Corp/Enron@ENRON, Nidia Mendoza/ENRON@enronXgate, Tom
Moran/ENRON@enronXgate, Bianca Ornelas/NA/Enron@Enron, Leslie
Reeves/HOU/ECT@ECT, Tanya Rohauer/ENRON@enronXgate, Dianne Seib/CAL/ECT@ECT,
Linda Sietzema/CAL/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Ellen
Wallumrod/NA/Enron@ENRON, Melinda Whalen/CAL/ECT@ECT, Tiffany
Williams/NA/Enron@Enron, Veronica Espinoza/ENRON@enronXgate
cc:
Subject: Credit Report -4/11/01

Counterparty     TAGG#   Action
AEP Energy Services Ltd.   v26767.1  Rebook to AEP Energy Services, Inc.
             "     v28098.3.4                                   "
Anadarko Energy Services Corp   v28837.1  Rebook to Anadarko Petroleum Corp.
Aquila Energy Marketing Corp.   v28299.1  Rebook to Aquila Risk Managment
 "     v27082.1   "
Bank of America Corporation   v28205.1  Rebook to Bank of America, NA
Duke Energy Trading and Marketing  v28394.1.2  Rebook from ECC to ENA under
the ISDA
Dynegy Canada Inc.    v28242.1  Rebook from ENA to ECC under the ISDA
Enserco Energy Inc.    v27843.1  Pending Veronica Espinoza
Fibre Source North America    v26240.1  Pending Arpana Rajaram
Gasmar SA     v27688.1  Pending Brant Reves
Graphic Communications   v26187.1  Pending Arpana Rajaram
Itochu International Inc.    v28052.1  Pending Darren Vanek
MGS Corporation    v27703.1  Pending Brant Reves
New Counteraparty    v27560.1  Pending Arpana Rajaram
 "     v28581.1  Pending Arpana Rajaram
Pacific Gas & Electric Company   v27828.1  Do Not Confirm
Texican Natural Gas Company   v27724.1.5.6  Pending Darren Vanek
Trafalgar Commodities Limited   v28860.1.2  Rebook to Trafigura Derivatives
Limited
Trafigura Derivatives Limited   v27767.1  Credit Previously Provided-Darren
Vanek
 "     v28860.1.2   "
TransCanada Energy Financials Products v27966.1  Rebook from ENA to ECC under
the ISDA
 "     v27794.1.2   "
Utilicorp United Inc.    v17089.2.3  Rebook to Aquila Risk Management
West Texas Gas, Inc.    v27383.1  Pending Jay Williams


Jeff --

Here are my thoughts.  Add / delete any

The state has properly identified (finally) the fundamental problem in
California - the shortage of supply in a market with growing demand.
Recognizing the core problem is at least half of the battle.
But rather than remove the current roadblocks to increased generation and
transmission investment, California appears to be choosing to own and operate
generation and transmission.
The best solution is to have the state allow private companies to site new
generation.
Given government's other large scale participation into public power - TVA,
BPA, NYPA - it is highly unlikely that trying to set up a state agency to do
something that private capital is willing and able to do is rational or in
the public interest.
Issuing debt costs consumers money and takes away capital from other
important issues - new roads and new schools.
We would be willing to work with the Legislature to help craft a bill that
gets more supply in California quickly, efficiently, and in an
environmentally sound manner, but this draft only creates more bureaucracy.


June volumes on Tejas are attached.


Holly Keiser
Enron Americas
Legal Department - EB 3887
713-345-7893 (ph)
713-646-3490 (fx)
Holly.Keiser@enron.com
----- Forwarded by Holly Keiser/ENRON_DEVELOPMENT on 03/23/2001 10:45 AM -----

	Vivian Nguyen/ENRON@enronXgate
	03/23/2001 10:43 AM

		 To: Holly Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: O&M Report 02-28-01

Holly,

Please forward this report to Mark for me.  I don't know which Mark Tayor he
is in the system.

Thank you,
Vivian
5-3995


plz call when you find a minute.  thx, jeff 415.782.7822.