---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
01/27/99 04:03 PM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  xtrials@optioninvestor.com (Option Investor Newsletter     Trials)
                       01/24/99 06:32 AM

Please respond to xtrials@optioninvestor.com
To: Option Investor Newsletter Trials <xtrials@optioninvestor.com>
cc:  (bcc: Mark - ECT Legal Taylor/HOU/ECT)
Subject: Sunday - Option Investor Newsletter 5 of 6     (Puts/Combos)

The Option Investor Newsletter            1-24-98
Sunday                5  of  6

PUTS Continued
**************
Campbell Soup Company (CPB) - $44.31 .25 (-.81)

Campbell Soup Company is a global manufacturer and marketer of
branded convenience food products operating in three business
segments: Soup and Sauces, Biscuits and Confectionery, and
Foodservice. Campbell Soup Company is the world's largest
maker and marketer of soup with fiscal 1998 sales of $6.7
billion.

Warm weather, flat sales, inefficient supply chain, and
company's ability to achieve costs savings and capacity
utilization are being called into question by analysts.
Increased marketing and selling expenses, increased store
level inventory levels, encroachment from private label (store
brand) products, reduced consumption levels and a recent
announce of new cost-cutting initiatives will cause fiscal
1999 earnings to fall short of analysts' estimates by 18 to
23 cents per share.  Analysts surveyed by First Call Corp.,
which tracks such estimates, had expected the company to earn
$2.13 a share during the year, which ends July 31. Campbell
earned $1.90 a share in the prior year. Campbell Soup Co.
said it now expects U.S. soup consumption to rise by only 1
to 2 percent in the second quarter from the previous year,
not 4 to 5 percent.

Stock recently failed at $59 and then broke key support at
$54.00 on news of earnings shortfall. Excessive call buying
recently is bearish and may provide continued overhead
resistance.

Play: Earnings Warnings

Update:
Stock recovered some last week but still trading below gap
price of $45.  Could sell off more if broad market comes
under pressure.

BUY PUT FEB-50  CPB-NJ OI=135 @ $6.00 SL=4.25
BUY PUT FEB-45  CPB-NI OI=593 @ $1.94 SL=1.00

Chart = http://quote.yahoo.com/q?s=cpb&d=3m
*****

DuPont de Nemours (DD) - $54.31 .25 (-2.69)

E.I. DuPont de Nemours and Company operates in fiveprincipal
industry segments: Chemicals, Fibers, Polymers,Life
Sciences, and Diversified Businesses.  For the 9 monthsended
9/30/98, total revenues rose 1% to $19.29B.  Netincome from
continuing operations before extraordinary itemand
applicable to Common fell 37% to $859M.  Revenuesbenefited
from acquisitions. Earnings were offset by a$651M
increase in purchased in-process R&D charges.

Pricing pressures from overcapacity continue to weigh on the
chemical group.  Street has been busy cutting the group's
earnings estimates for the next couple of quarters, as
troubled economies in Asia and Latin America suggest that
demand/pricing conditions won't improve any time soon.
Commodity chemicals such as ethylene hardest hit, with prices
falling by as much as 50% over past year.  Stocks have seen
some buying interest in recent weeks on hopes that lower
interest rates will jumpstart sagging global economy.  But
gains appear more a function of underlying market strength and
light bargain hunting than any sea change in expectations for
a sustained earnings recovery.  Chemical companies are
cutting jobs and reducing production to adjust to challenging
conditions.  Comparison periods will also become more
attractive by mid-CY99. However, until that time there is no
reason to suspect the group to do anything but underperform
the market.  Given existing oversupply, declining earnings
growth, slowing worldwide economic growth and the market's
preference for momentum over turnaround situations, DD could
be under pressure over the near-term.  After advancing $7
over the past couple of weeks, DuPont signaled a failed rally
at its declining 200-day moving average.  Target - $53.

Play: Failed Rally

Stock moved up fractionally during Friday's (1/22) broad sell
off. Stock still below declining moving averages.  Tighten
protective sell stop to $58.25.

BUY PUT FEB-60  DD-NL OI=1907 @ $6.38 SL=4.75
BUY PUT FEB-55  DD-NK OI=1879 @ $2.69 SL=1.75

Chart = http://quote.yahoo.com/q?s=dd&d=3m
*****

Hershey Foods (HSY) - $59.00 1.00 (-2.25)

ershey Foods (HSY) manufactures, distributes, and sells a
broad line of chocolate and non-chocolate confectionery,
pasta and grocery products.  For the nine months ended
10/4/98, net sales rose 4% to $3.2 billion.  Net income rose
5% to $230.9 million.  Revenues reflect higher sales of core
confectionery brands and incremental sales from the
introduction of new confectionery products.  Earnings also
reflect reduced marketing costs for existing brands and lower
selling costs in foreign markets.

Play Description:
Stock continues to struggle following analyst downgrades and
Q4 weakness. Margins are likely to be under pressure with
increased costs. Stock simply seems to be out of favor and
relative strength is declining. Likely to test lows at $48.

Play: Failed Rally

Update:
Stock moved higher during Friday's (1/22) broad market sell-off
but still trading below key benchmark of $60. Tighten protective
stop to $62.25.

BUY PUT FEB-65  HSY-NM OI=182  @ $6.38 SL=4.75
BUY PUT FEB-60  HSY-NL OI=425  @ $2.63 SL=1.75

Chart = http://quote.yahoo.com/q?s=hsy&d=3m
*****

Microchip Tech (MCHP) - $30.19 -1.00 (-4.94)
Semiconductor

Company Description:
MCHP develops, manufactures and markets programmable 8-bit
microcontrollers, application specific standard products and
related specialty memory products for consumer, automotive,
office automation, industrial and communications markets.

Play Description:
Microchip is struggling to restructure its operations to try
to eliminate the company's older, less-efficient manufacturing
capacity and to manage inventory levels. Analysts recently cut
estimates for fiscal '99 and '00. Microchip's December quarter
was characterized by continued low order visibility, along with
some weakness in end-of-quarter turns order shipments,
Stock recently gapped off of failed rally point of $40 and may
test prior lows in the $20's

Play: Analysts Downgrade

Update:
Stock still breaking down and nearing key 100 and 200-day
moving averages.  Could retest $20 if stock breaks under $30.

BUY PUT FEB-35  QMT-NG OI= 99 @ $5.88 SL=4.00
BUY PUT FEB-30  QMT-NF OI=257 @ $2.44 SL=1.25

Chart = http://quote.yahoo.com/q?s=mchp&d=3m
*****

Merck (MRK) - $139.00 -7.31 (-8.13)

Merck is a pharmaceutical company that discovers,develops,
produces and markets human/animal health productsand
services.  Merck also provides pharmaceutical benefit
services. For the 9 months ended 9/30/98, sales rose 11%
to$19.37B.  Net income rose 14% to $3.85B. Revenues
reflecthigher sales of established major products & newer
products,and growth from the Merck Medco Managed Care
business. Earnings also reflect gains on the sales of
businesses.

After climbing 38% over the past four months, this leading
pharmaceutical company is showing signs of potential
failed rally below its 52-week high of $161.75.  Retracement
target $136-$140. Pinnacle's sentiment indicator is reaching
extreme levels (4.7) setting this high tech company up for a
precipitous sell-off if expectations don't measure up within
the drug sector.

Play: Failed Rally

Big winner for OI subscribers last week after selling off
precipitously on Friday (1/22).  Drug sector now begging to
roll over.

BUY PUT FEB-145 MRK-NI OI=1686 at $6.25 SL= 4.25
BUY PUT FEB-140 MRK-NH OI=1720 at $3.63 SL= 1.75

Chart = http://quote.yahoo.com/q?s=mrk&d=3m
*****

Perkin-Elmer Corporation (PKN) - $91.31  -2.88 (-4.06)

Perkin-Elmer Corporation (PKN) develops, manufactures and
markets life science systems and analytical instruments for
the pharmaceutical, biotech, environmental, agricultural,
forensics and chemical industries. For the three months ended
9/98, revenues rose 16% to $375.8 billion. Net income fell
21% to $17 million. Revenues reflect higher sales of biotech
products in the U.S. and Europe. Earnings suffered from
higher R&D, merger charges, decreased interest income, a $3.1
million loss at Tecan and a higher tax rate.

PKN operates internationally, with manufacturing and
distribution facilities in various countries throughout the
world and derives approximately 53% of its revenues from
countries outside of the United States. Results continue to
be affected by market risk, including fluctuations in foreign
currency exchange rates and changes in economic conditions in
foreign markets. Company is in the process of reorganizing
the Company's capital structure to help move Perkin-Elmer
toward a market leader in biomedical and genomics
information. They are currently evaluating strategic
alternatives for our analytical instruments business.

Distribution among top institutional shareholders is taking
place as stock is likely to trade back into trading range of
$65-75. Stock moving up in anticipation of  Celera Genomics
spinoff but sale of the AI division may be dragging on.
Questions also remain about suitable valuation level after
spinoff.  Today's price action attributable to possible delays
in Celera Genomics spinoff.

Play: Failed Rally

Stock finally breaking down after consolidating between $95-$100.
Target is $80.

BUY PUT FEB-95  PKN-NS OI=174 @ $6.63 SL=4.00
BUY PUT FEB-90  PKN-NR OI=27  @ $3.75 SL=2.00

Chart = http://quote.yahoo.com/q?s=pkn&d=3m
*****

Warner Lambert (WLA) - $67.94 .94 (-1.88)

Warner Lambert is a manufacturer of ethical pharmaceuticals,
biologicals, capsules, consumer health care products and
confectionary products.

Shares of large U.S. drug companies are being hurt by profit
taking and concerns about proposed changes to the Medicare
payment system.  Recently, a Bipartisan Commission opened the
door for Medicare to cover prescription drugs for
beneficiaries, a recommendation that if adopted, could put
pressure on drug companies.  Recent inquiries regarding the
safety of Rezulin received nationally televised attention and
may give rise to  investor concern.   Also, it may be
difficult to sustain the growth rates for Lipitor, Rezulin
and Neurontin products that WLA has enjoyed this past year.

Top side consolidation since July may be difficult to overcome
in extended market conditions.  Given that the drug sector
has and will continue to be a strong performing sector, we
recommend a modest sell-off price targets of $55 to 60.

Play: Failed Rally

Update:
Top side consolidation since July may be difficult to overcome
in extended market conditions.  Still trading below key 100
and 200-day moving averages and benchmark of $70.  Tighten
protective sell stop to $71.25.

BUY PUT FEB-75  WLA-NO OI=1233 @ $8.00 SL=6.75
BUY PUT FEB-70  WLA-NN OI=2134 @ $4.75 SL=3.00

Chart = http://quote.yahoo.com/q?s=wla&d=3m

***********
COMBO PLAYS
***********
U.S. blue chips stocks fell sharply Friday as worries about the
Brazilian currency crisis and poor revenues at the world's biggest
computer maker drove traders to an aggressive sell-off. The DJIA
closed 143 points lower and has shed all of its gains for the year.
Concerns that Latin America's economic instability and Brazil's
currency devaluation could hurt other countries sent investors out
of stocks and into bonds, seeking safety in U.S. government assets.
To make matters worse, IBM's earnings were good, not spectacular,
and revenues were disappointing due to poor hardware sales. IBM
also failed to announce a generally expected stock split, making
investors even more unhappy. Analysts are saying the main problem
with our current market is that optimistic investors are expecting
earnings to come in better than what they're actually going to be
and this will probably cause a near-term market downturn. We shall
soon find out!

Our new spread positions were all available near the recommended
entry points. CTXS was the first candidate, and although the stock
price continued to slide, the play (MAR90C/FEB95C) was still
favorable at an initial debit of $4.87. RDRT was also lower at the
open and the debit for the MAR17C/FEB20C bullish diagonal spread
was $1.75. LVLT was a bull-call position with a conservative bias
and the price for the MAR37C/MAR45C spread was $4.62. SEPR is our
new long-term play and the volatile trading offered a couple of
opportunities to enter the position, (JAN00-100/FEB100C) at $19.25.

Other activities included a closing play on CIEN as the stock price
gapped-up $4 amid speculation it may again be a possible takeover
target and rumors it may land a large contract. PCS continues to
move higher in the "hot" telecom sector and we are monitoring the
positions closely. They are now both deeply ITM and there is always
the chance of early exercise. Good Luck!

CREDIT SPREAD SUMMARY
*********************
Stock   Pick     Last      Position   Credit  Cost    G/L   Status

AAPL   $41.38   $38.75   FEB35P/37P   $0.87  $1.00  ($0.12)  Open
COF    $130.43  $128.69  FEB105P/110P $0.62  $0.38   $0.25   Open
ELN    $68.93   $70.25   FEB80C/75C   $0.75  $1.00  ($0.25)  Open
GMSTF  $59.87   $59.00   FEB40P/45P   $0.50  $0.50   $0.00   Open
SDTI   $25.50   $25.81   FEB17P/20P   $0.50  $0.38   $0.12   Open
SRCM   $20.87   $20.88   FEB15P/17P   $0.75  $0.75   $0.00   Open

Credit spreads are profitable if both positions remain OTM until
expiration. The cost-to-close price can be used to compare the
initial opening credit to the current spread value.

CALENDAR SPREAD SUMMARY
***********************
Stock   Pick    Last     Position    Debit   Value    G/L   Status

ATI    $64.93  $93.88 LJAN70/FEB75C  $8.50   $9.50   $1.00  Closed
BGP    $23.19  $18.69    FEB25C      $1.38   $0.25  ($1.12)  Open
CD     $19.93  $19.00 LJAN20/FEB20C  $3.50   $3.50   $0.00   Open
CPQ    $42.68  $46.19 APR45C/FEB45C  $0.00   $2.00   $2.00   Open
CTXS   $89.00  $87.25 MAR90C/FEB95C  $4.87   $5.00   $0.12   Open
DIS    $38.00  $34.13 LJAN40/FEB40C  $4.00   $3.50  ($0.50)  Open
GM     $71.50  $90.75 MAR70C/FEB75C  $4.50   $5.00   $0.50   Open
HUM    $19.50  $19.38 MAY20C/FEB20C  $1.25   $1.25   $0.00   Open
NOVL   $18.19  $19.19 MAY17C/FEB20C  $1.12   $2.50   $1.38   Open
OMPT   $14.06  $16.00 MAR15C/FEB15C  $1.50   $0.75  ($0.75)  Open
OXHP   $20.06  $18.81 MAY20C/FEB20C  $0.81   $1.50   $0.68   Open
PCS    $21.81  $30.88 MAY22C/FEB25C  $1.50   $3.50   $2.00   Open
PTEK   $11.38  $11.00 MAR12C/FEB12C  $0.50   $0.62   $0.12   Open
RDRT   $18.93  $18.31 MAR17C/FEB20C  $1.75   $1.56  ($0.19)  Open
SEPR   $99.62  $99.50 LJAN100/F100C  $19.25  $19.38  $0.12   Open
SUNW   $94.50  $98.00 LJAN100/F100C  $14.00  $17.50  $3.50   Open
WCOM   $74.25  $74.88 LJAN75/FEB75C  $5.62   $10.50  $4.87   Open

The calendar (or time spread) is profitable if the value of the
position exceeds the initial debit (or cost-basis) at the end of
the expiration period for the long position. However, because we
track the plays based on the current closing cost/value, the gains
for time spreads will rarely be reflected until the play closes.
Each month, as we sell a new call against the long position, the
net cost should decline or the position value should increase.

DEBIT SPREADS
*************
Stock   Pick     Last      Position   Debit   Value   G/L   Status

ABI   $48.87   $48.31  FEB45C/FEB50C  $2.87   2.75   -0.12   Open
AOL   $146.50  $140.44 FEB155C/160C   $2.50  $1.25  ($1.25)  Open
AOL   $146.50  $140.44 FEB155C/160C   $1.50  $1.25  ($0.25)  Open
CIEN  $18.68   $22.56  FEB12C/FEB17C  $3.50  $4.50   $1.00  Closed
FTL   $18.50   $17.81  FEB15C/FEB20C  $1.50  $2.38   $0.87  Closed
LEVL  $38.00   $39.94  FEB30C/FEB35C  $3.25  $4.38   $1.12  Closed
LU    $107.87  $103.31 FEB105C/110C   $1.75  $3.25   $1.50  Closed
LUV   $26.06   $26.69  FEB22C/FEB25C  $1.25  $2.25   $1.00  Closed
LVLT  $44.19   $45.94  MER37C/MAR45C  $4.62  $5.00   $0.38   Open
OXHP  $20.06   $18.81  FEB17C/FEB20C  $1.38  $1.12  ($0.25)  Open
OXHP  $20.06   $18.81  FEB17C/FEB20C  $1.00  $1.12   $0.12   Open
QNTM  $24.87   $24.81  FEB22C/FEB25C  $1.25  $1.38   $0.12   Open
RHD   $17.68   $15.94  MAR15C/MAR17C  $1.12  $1.00  ($0.12)  Open
SCUR  $26.75   $26.50  FEB20C/FEB25C  $3.75  $3.38  ($0.38)  Open

A debit-spread is profitable if the value of the position exceeds
the initial cost of the spread when the play is closed. However,
because we track plays based on the current cost/value, potential
gains may not be reflected until both positions are closed.

DEBIT STRADDLES
***************
Stock   Pick     Last     Position   Debit  Value   G/L    Status

JMED   $35.19   $34.25   MAR35C/35P  $5.62  $4.62  ($1.00)  Open
NXTL   $29.68   $30.63     MAY30C    $0.00  $2.12   $2.12  Closed

A debit-straddle is profitable when the value of the position
exceeds the initial cost of the spread.

NEW PLAYS
*********
MRK - Merck Company Inc.  $139.00     *** Earnings Slam ***

Merck is the #1 drugmaker in the US and is tied for first in the
world with Glaxo Wellcome in prescription drugs. They develop
products for both humans and animals; almost two-fifths of its
sales come from treating ailments associated with American eating
habits, (high cholesterol, hypertension, and heart failure). In
addition, Merck has the top-selling US drugs for hypertension
as well as newer, promising drugs for AIDS treatment, male balding
and migraine headaches. Also under development is a new arthritis
drug.

The drug developer fell $7.31 on Friday after it said it will stop
testing its MK-869 drug for use as an antidepressant. The company
hoped to develop the drug, which it will still test as a treatment
for nausea in cancer patients, as a hedge against the impending
loss of 4 major patents in 2001. The split run (2/16/98, 2-1) may
have some effect but the SOR date is Monday (after the close) and
we see this one falling short of the sold strike in mid-February.

PLAY (conservative/credit spread):

BUY  CALL FEB-160 MRK-BL OI=3366 A=$1.25
SELL CALL FEB-155 MRK-BK OI=3539 B=$1.93
NET CREDIT TARGET=$0.81 ROI=19%

PLAY (bearish momentum only):

BUY  PUT FEB-150 MRK-NJ OI=885  A=$8.50
SELL PUT FEB-145 MRK-NI OI=1686 B=$6.00
NET DEBIT TARGET=$2.38 ROI(max)=110%

Chart = http://quote.yahoo.com/q?s=MRK&d=3m
*****

EMC - EMC Corp.  $98.50     *** Technical/Disparity Play ***

EMC Corp. and its subsidiaries design, manufacture, market and
support a wide range of storage-related hardware, software and
service products for the open systems, mainframe and network
attached information storage and retrieval system market. The
company is the #1 maker of many of these components. EMC markets
its memory products under the name Symmetrix. Other products let
users manage remote data and share information across networks of
different computers. EMC continues to broaden its product line,
strengthen alliances, and expand its global presence to create
more platform-independent systems.

We just like the chart and the small disparity for a (relatively)
free-money play.

PLAY (conservative/credit spread):

BUY  PUT FEB-75 EMC-NO OI=502  A=$1.12
SELL PUT FEB-80 EMC-NP OI=1157 B=$1.50
NET CREDIT TARGET=$0.50 ROI=11%

Chart = http://quote.yahoo.com/q?s=EMC&d=3m
*****

SKYT - Skytel  $26.38     *** Telecom ***

SkyTel Communications (formerly Mobile Telecom Tech.) is one of
the leading providers of worldwide wireless messaging services,
marketing primarily to business users. The company offers a wide
range of messaging services to its users. Subsidiary SkyTel Corp.
provides paging and messaging services including pagers, two-way
alphanumeric text messaging and two-way interactive messaging.
SkyTel also provides messaging services in in Central and South
America through its Mtel Latin America subsidiary. SKYT recently
added more specialized content to its information services with
the addition of Asian market updates, real-time stock quotes,
sports scores, company news, ski reports and horoscopes. Coverage
was initiated early this month by ABN AMRO with an "Outperform"
rating and we like the long-term outlook for the chart.

PLAY (conservative/long-term play):

BUY  CALL JUN-25 MMQ-FE OI=249  A=$4.75
SELL CALL FEB-25 MMQ-BE OI=3012 B=$2.38
NET DEBIT TARGET=$2.25 TARGET ROI=60%

PLAY (very conservative/debit spread):

BUY  CALL FEB-22.50 MMQ-BY OI=50   A=$4.38
SELL CALL FEB-25.00 MMQ-BE OI=3012 B=$2.38
NET DEBIT TARGET=$1.87 ROI(max)=33%

Note: In the long-term calendar spread, we are reducing the net
cost of the long option by the amount of credit from the sale of
the nearer-term option. If the near-term call expires worthless,
we will sell the MAR call to further reduce our debit. If your
short-term position is ITM on the last day of the strike, you
need to buy it back so that you DON'T have to exercise the long
term position. In that case, your long position is going up in
value also and on the last day of the strike period, the short
call will shrink down to intrinsic value so you should be ahead
in the play even after you buy it back.

Chart = http://quote.yahoo.com/q?s=SKYT&d=3m
*****

PLCM - Polycom  $26.75     *** Telecom ***

Polycom makes long-distance teleconferencing products for use on
regular telephone networks. The ShowStation data-conferencing
system enables people in different locations to view and edit
documents on a simultaneous, interactive basis. Its SoundStation
audio-conferencing system, provides two-way voice communication
without typical speakerphone distortion. Subsidiary ViaVideo
Communications offers ViewStation, a Web-based videoconferencing
system that features a voice-tracking camera. Reported awesome
earnings last week, net revenues grew 140% for the year to over
$100 million. Technically, an outstanding chart with some recent
support around $21 but it may need to consolidate before moving
higher. That will be just the thing we need to benefit from this
time spread.

PLAY (conservative/calendar spread):

BUY  CALL MAR-25 QHD-CE OI=0   A=$4.38
SELL CALL FEB-25 QHD-BE OI=163 B=$3.15
NET DEBIT TARGET=$1.00 TARGET ROI=40%

Chart = http://quote.yahoo.com/q?s=PLCM&d=3m
*****

NRC - NAC RE Corp  $48.56     *** Technical Time Spread ***

NAC Re is a holding company whose subsidiaries offer property and
casualty reinsurance. Subsidiaries NAC Reinsurance, Greenwich
Insurance Company, Indian Harbor Company, and NAC Re International
Holdings provide both treaty reinsurance for categories of risk
and facultative individual risk reinsurance to primary insurers of
casualty risk. Most U.S. commercial property-casualty insurers,
battered by an unrelenting price war and increases in catastrophe
losses, were expected to post flat to lower earnings in the fourth
quarter. This may also be the case for NRC but we think the stock
price will hold near the current range for the next few weeks.
Technically, NRC is making feeble attempts to break-out of it's
stage III top but with little volume support. Its 150 dma is the
current resistance (around $49) with support around $45. It will
take some work to exit the current sideways trend and that's just
what we need to make this play profitable.

PLAY (conservative):

BUY  CALL MAR-50 NRC-CJ OI=160 A=$4.87
SELL CALL FEB-50 NRC-BJ OI=289 B=$3.62
NET DEBIT TARGET=$1.00 TARGET ROI=50%

Chart = http://quote.yahoo.com/q?s=NRC&d=3m
*****

CNTO - Centocor  $39.93     *** Butterfly Spread ***

Centocor makes therapeutic, diagnostic drugs for cardiovascular
problems, cancer and other diseases. Three of their products are
approved for sale in the US: ReoPro prevents blood clots during
angioplasty, Remicade treats the bowel disorder Crohn's disease
(and is being tested for efficacy against rheumatoid arthritis),
and Panorex treats cancer. ReoPro is sold in the US and Europe by
Eli Lilly. Centocor's drug Avakine is in the final US testing
stages for treatment of Crohn's disease. The company owns the US
and Canadian marketing rights for Retavase, a cardiovascular drug
developed by Roche Holding. Centocor is also selling its oncology
diagnostics business to focus on therapeutics.

Recently, Morgan Stanley Dean Witter cut its rating on the firm
to "outperform" from "strong buy" and adjusted its 12-month price
target to $51 per share from $62 per share. We think that's a bit
optimistic as CNTO has been trading around $35 to $45 for almost
two years and has a very long term base with no immediate signs of
a significant character or trend change. The volatility of the
holiday bull-run seems to have dissipated and the sideways trend
is now resuming. We are going to start this play as a "butterfly"
but plan to roll-out of each spread as the stock price moves about
the $40 range.

PLAY (conservative/long-term):

BUY  CALL  APRIL-35 COQ-DG OI=364  A=$7.50
SELL CALLS APRIL-40 COQ-DH OI=507  B=$4.38
BUY  CALL  APRIL-45 COQ-DI OI=1227 A=$2.68
NET DEBIT TARGET=$1.00 TARGET ROI=50%

The butterfly spread is generally a neutral position that is
a combination of both a BULL spread and a BEAR spread. This
spread is designed primarily for the stock that will not
experience much of a net rise or decline by expiration. It
generally requires only a small investment and has a limited
risk but profits are limited as well. It can also be costly
in terms of commissions so you should consider playing these
combination strategies with a low cost (discount) broker.

There are three strike prices involved in a butterfly spread.
With calls, (and it can also be done with puts) the butterfly
spread consists of buying one call at the lowest strike price,
selling two calls at the middle strike price and buying one
call at the highest strike price. Next week, we will run the
complete strategy narrative again to help the beginning traders
with the technique.

Chart = http://quote.yahoo.com/q?s=CNTO&d=3m

INDEX OPTION SPREADS
********************
As a trader, you may be familiar with options on individual stocks
where you have the right to buy (call option) or the right to sell
(put option) a particular stock at some predetermined price within
some predetermined time. The buyer has the rights and the seller
the obligations. With index options the basic ideas are the same.
Index options allow you to make investment decisions on a specific
market industry or on the market as a whole. Spread strategies can
be made with index options similar to those made with individual
stock options. Many professional traders employ index spreads as a
hedge strategy. We favor debit positions on the SPX for momentum
and longer-term plays and OTM credit spreads on the OEX when the
risk/reward is favorable. Low ROI disparity spreads will be listed
(when available) for the conservative index trader.
*****

OEX - S&P 100 Index  $610.38     OTM Credit-Spreads

The Standard & Poor's 100 Index is a capitalization-weighted index
of 100 stocks from a broad range of industries. The component
stocks are weighted according to the total market value of their
outstanding shares. The impact of a component's price change is
proportional to the issue's total market value, which is the share
price times the number of shares outstanding.

OBSERVATIONS:

For OTM credit spread trades, we like to use the actively-traded
S&P 100 Index options because they contain much more premium than
options on individual stocks and provide an underlying instrument
less prone to huge, gapping moves. Remember however, that you can
always be exercised early so monitor your positions daily.

TECHNICALS:

While the overall market seems likely to remain in a wide trading
range over the next few weeks, the probabilities are quite strong
that we have reached a short-term top and the current outlook is
somewhat unfavorable. The DOW has found some support just above a
key level around 9085 and a close below that number confirmed by
a S&P 500 close below 1205 would signal a more serious correction.
The long-term pattern is in a neutral but weakening condition with
the NYSE survey starting to slip and the NYSE momentum index at
its worst level in years. Review the Pinnacle Hedge-Section for
more specific technical information on the S&P 100 Index.

PLAY (very conservative/disparity-low ROI):

BUY  PUT FEB-550 OEW-NJ OI=3944 A=$4.50
SELL PUT FEB-555 OEW-NK OI=1265 B=$4.87
NET CREDIT TARGET=$0.38 ROI=8%

PLAY (conservative/bearish):

BUY  CALL FEB-670 OEY-BN OI=6374 A=$1.19
SELL CALL FEB-660 OEY-BL OI=6738 B=$2.12
NET CREDIT TARGET=$0.93 ROI=10%

PLAY (aggressive/bullish):

BUY  PUT FEB-565 OEW-NM OI=2357 A=$6.38
SELL PUT FEB-570 OEW-NN OI=3851 B=$7.25
NET CREDIT TARGET=$0.87 ROI=21%

CHART= http://quote.yahoo.com/q?s=oex&d=b????HOW TO SUBSCRIBE?****************??We would like to have you as a subscriber. You may subscribe?at any time but your subscription will not start until your?free trial is over.??The monthly subscription price is 39.95?The quarterly price is $99 which is $20 off the monthly rate.??To subscribe you may go to our website at??www.optioninvestor.com??and click on "subscribe" to use our secure credit?card server or you may simply send an email to?"subscribe@optioninvestor.com" with your?credit card information,(number, exp date, name)?or you may call us at 303-797-0200 and give us the?information over the phone.??You may also fax the information to: 303-797-1333??*****??PLEASE SEE DISCLAIMER IN SECTION ONE??*****???


Please review this final draft at your earliest convenience and get back to
Britt or me with your comments.  Thanks.  Martha, please print it out for
me.  Thanks. DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 12/16/99 08:23
AM ---------------------------

"Sherry L. Graves" <Sgraves@Gibbs-Bruns.com> on 12/15/99 05:41:21 PM
To: Britt Davis/Corp/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, "'Harper
Estes (sec.) @ Lynch Chappell'" <lfrankli@lynchchappell.com>
cc:

Subject: Revised responses to Interrogs. & Req. for Production for your re
view.

 - 1rcc01!.WPD


Do I need to get involved?

	Kay Mann@ENRON
	01/22/2001 04:50 PM

		 To: "Thomas Hetherington" <thetherington@bracepatt.com>
		 cc: <richard.b.sanders@enron.com>
		 Subject: Re: Westinghouse 501d memo

Yes, this is issue is still around.

Thomas, I had some correspondence faxed to you today.  In it SW is clearly
taking the position that the damage to the generator occured after delivery
under the contract.  I thought you addressed that well in your memo, however,
I have another question.  What impact does the use of DDP (Incoterms) have?
Is it just one more part of the contract to be taken as a whole, or might it
have some greater significance?

Will the passage of ROL impact the LD claim?  I assume not, but I want a
sanity check.

Thanks,

Kay

"Thomas Hetherington" <thetherington@bracepatt.com> on 12/19/2000 09:47:11 AM
To: <kay.mann@enron.com>
cc: <richard.b.sanders@enron.com>

Subject: Westinghouse 501d memo

Attached is a legal memo regarding Westinghouse's delivery obligations with
respect to the 501D5A gas turbine generator package.  I will forward you an
additional copy by fax.

TFAH


THE BROOKINGS ALERT
week of Monday, October 2, 2000
http://www.brookings.edu/

E V E N T S
***********************************
  KEEPING THE GOOD TIMES ROLLING--
  TECHNOLOGY AND THE GLOBAL ECONOMY
  A Brookings Priorities 2000 (P2K) National Issues Forum, with
  representatives of the Bush and Gore campaigns. Moderated by
  Alan Murray, D.C. Bureau Chief of The Wall Street Journal.
  Tuesday, October 10, 2000 @ 10:00am.
  Call Communications, 202/797-6105, to attend
  http://www.brookings.edu/comm/P2K/economy.htm

  FAITH AND POLITICS
  Scott Keeter, a contributor to The Diminishing Divide: Religion's
  Changing Role in American Politics (Brookings, 2000), will address the
  supposed separation between church and state, and religion as a factor
  in voting.
  Wednesday, October 11 @ 7:30 pm. Politics & Prose, 5015 Connecticut
  Ave., NW; 202-364-1919. For more book information, please visit:
  http://www.brookings.edu/press/books/diminishing_divide.htm

H E S S  R E P O R T
***********************************
  Week four of campaign TV coverage analysis by Stephen Hess, with
  data and third round of awards for media coverage. All available at:
  http://www.brookings.edu/HessReport/

P U B L I C A T I O N S
***********************************
  Services Trade in the Western Hemisphere: Liberalization, Integration,
  and Reform; Sherry M. Stephenson, ed.
  http://www.brookings.edu/press/books/services_trade.htm

P O L I C Y  B R I E F S,
 P A P E R S, A R T I C L E S
***********************************
  "The New Partisanship: The Changed Politics of American Foreign Policy"
  article by James Lindsay; U.S. Foreign Policy Agenda (Sept. 2000)
  http://www.brookings.edu/views/articles/Lindsay/2000usfpa.htm

  "How Big is the Prospective Budget Surplus?," policy brief #64
  (September 2000), Alan J. Auerbach and William G. Gale
  http://www.brookings.edu/comm/policybriefs/pb064/pb64.htm

I N  T H E  P R E S S
***********************************
  "Don't Pull Out of the Balkans,"
  opinion by Ivo Daalder; The Washington Post (9/28/00)
  http://www.brookings.edu/views/op-ed/Daalder/20000928.htm

  "U.S. Gas-Pump Policy Is Full of Hot Air,"
  opinion by Pietro Nivola; Newsday (9/26/00)
  http://www.brookings.edu/views/op-ed/Nivola/20000926.htm

  "How Much Money Is Enough for Defense?"
  opinion by Michael O'Hanlon; Los Angeles Times (9/25/00)
  http://www.brookings.edu/views/op-ed/OHanlon/20000925b.htm

  "Critical Information not Covered by Media"
  The Hess Report, by Stephen Hess; USA Today (9/25/00)
  http://www.brookings.edu/gs/projects/HessReport/week3.htm

M U L T I M E D I A
 &  C H A T S
***********************************
  Oct. 4: Chat with Tom Loveless, Director of Brookings Brown Center on
  Education Policy, about how well American students are learning
  --@ 2:00pm EDT
  http://www.brookings.edu/comm/chat/Loveless001004.htm

  Oct 6: Chat with Robert Litan about the Internet and the economy
  --@ 1:30pm EDT
  http://www.brookings.edu/comm/chat/Litan001006.htm

  Oct. 10: Chat with Stephen Hess about the shape of the presidential race
  --@ 2:00pm EDT

  Transcripts from previous chats on regulation, social security reform,
  available at: http://www.brookings.edu/comm/chat/chat.htm

E X E C U T I V E
 E D U C A T I O N
***********************************
  Brookings Center for Public Policy Education offers 16 new programs this
  year. For more information on education programs designed for government
  and business executives throughout the year, call 1-800-925-5730 or
visit
  the Center for Public Policy Education on-line at:
  http://www.brookings.edu/ExecEd/
_______________
The Brookings Alert is delivered electronically every Monday.
We invite you to forward this Brookings Alert to a colleague.

You can subscribe to the Brookings_Alert listserv in two ways:
(1) send an e-mail to: JOIN-BROOKINGS_ALERT@www.brookings.edu
    with a blank Subject line and a blank Message body

(2) visit the Brookings website at:
    http://www.brookings.edu/scripts/lyris.pl?join=brookings_alert
_______________
The Brookings Institution
1775 Massachusetts Avenue, NW
Washington, DC 20036
(202) 797-6000
http://www.brookings.edu/

---
You are currently subscribed to brookings_alert as: [klay@enron.com]
To unsubscribe, forward this message to
leave-brookings_alert-25465S@www.brook.edu


Attached for your approval is the form of Enron Corp. Guaranty in favor of
the referenced Counterparty, which guarantees the obligations of ENA under
an  ISDA Master Agreement.  This Counterparty is an affiliate of the utility
for the Province of Quebec, Hydro-Quebec.  We will need the standard executed
copy.

 Per my voicemail, we will need the executed guaranty by Tuesday, October 24,
2000.  Please let me know if this presents any problem.

 In addition, we will need the following closing documents:  (i) Certificate
of Incumbency, (ii) certified board resolutions of the Policy for Approval of
Guarantees (&Policy8), (iii) certificate by the Treasurer or other authorized
officer certifying coverage of the Guaranty under the Policy, and (iv)
certified copy of Enron Corp.,s articles of incorporation and bylaws.

 Upon approval and execution, please call me at x33399 to pick up the
documents.  Thank you for your assistance in this matter.


When I try to approve this, I get a message that the approval was already
assigned to Michelle Cash. What gives?

	ARSystem <ARSystem@mailman.enron.com>
	03/19/2001 07:22 PM

		 To: "richard.b.sanders@enron.com" <richard.b.sanders@enron.com>
		 cc:
		 Subject: Your Approval is Overdue: Access Request for andrew.edison@enron.com

This request has been pending your approval for  5 days.  Please click
http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000023375&Page=
Approval to review and act upon this request.

Request ID          : 000000000023375
Request Create Date : 3/13/01 10:24:06 AM
Requested For       : andrew.edison@enron.com
Resource Name       : Live Link
Resource Type       : Applications


I have asked Doug to set up a mediation

	Lisa Mellencamp
	01/19/2001 03:05 PM

		 To: Randal Maffett/HOU/ECT@ECT
		 cc: Michelle Cash/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT
		 Subject: Re: Fwd: Plaintiff's amended petition

my vote is to pay this person the amount of his claim and have him go away.
Lisa J. Mellencamp
Enron North America Corp. - Legal
1400 Smith St.
Houston, TX  77002
Tel:  (713) 853-7986
Fax: (713) 646-3393
E-mail:  Lisa.Mellencamp@enron.com

	Randal Maffett
	01/19/2001 02:28 PM

		 To: Richard B Sanders/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT, Lisa
Mellencamp/HOU/ECT@ECT
		 cc:
		 Subject: Fwd: Plaintiff's amended petition

FYI - Here is the e-mail from Tom Hall (forwarded by Doug Daniels) which I
was missing a hard copy of.    Please note the 2nd paragraph where he
mentions amending his petition to include myself, Steve Hamilton and Enron as
defendants as well as including tort claims for slander, fraud, and tortious
interference?????

---------------------- Forwarded by Randal Maffett/HOU/ECT on 01/19/2001
02:24 PM ---------------------------

"Douglas Daniels" <ddaniels@bracepatt.com> on 01/19/2001 02:15:53 PM
To: <Randal.T.Maffett@enron.com>
cc:
Subject: Fwd: Plaintiff's amended petition

Per your request, here is Tom's saber-rattling e-mail about suing you and
others directly.
Content-Transfer-Encoding: 7bit
Received: from mcafee.bracepatt.com by bracepatt.com; Wed, 27 Dec 2000
11:51:57 -0600
Received: FROM pop137-mc.mail.com BY mcafee.bracepatt.com ; Wed Dec 27
11:56:42 2000 -0600
X-Proxy: keymaster.bracepatt.com protected
Received: from tom (unknown [24.93.46.84]) by pop137-mc.mail.com (Postfix)
with SMTP id D87DB5BF23 for <ddaniels@bracepatt.com>; Wed, 27 Dec 2000
12:47:53 -0500 (EST)
Reply-To: <tomhall@usa.com>
From: "Thomas Hall" <tomhall@usa.com>
To: "Doug Daniels" <ddaniels@bracepatt.com>
Subject: Plaintiff's amended petition
Date: Wed, 27 Dec 2000 11:47:34 -0600
Message-ID: <NEBBLEOINBHBIACJDCKKEEBCCCAA.tomhall@usa.com>
MIME-Version: 1.0
Content-Type: text/plain; charset="iso-8859-1"
X-Priority: 3 (Normal)
X-MSMail-Priority: Normal
X-Mailer: Microsoft Outlook IMO, Build 9.0.2416 (9.0.2910.0)
Importance: Normal
X-MimeOLE: Produced By Microsoft MimeOLE V5.50.4133.2400

Dear Doug,

I decided to wait until after Christmas to respond to your letter.

I have drafted an amended petition which adds Randy, Steve, and Enron as
defendants.  Among other matters, the petition includes tort claims arising
from acts of slander, fraud, and tortious interference with contract.

You have been critical of my decision to file the original petition in
September because, as I understand it, you believed that I had failed to
exhaust other avenues for redress.  I believe that every other potential
means of resolution had been exhausted.  However, in respect for your offer
of constructive criticism, I would like to once again extend an offer for
mediation in an attempt to resolve the ECOGAS matter, and now these matters.

I called your office and understand that you are not in today.  As I
anticipate that you may be on vacation this week, I will wait until next
week before proceeding with any new filings.

Please contact me if mediation is of any interest to your client.  If it
won't be you, please let me know if you happen to know who will be
representing the additional defendants.

Best regards,
Tom


Attached is PIRA's latest "Electricity Daily Demand Forecast."

If you have any questions regarding the report's content, please contact
Morris Greenberg (email: morris@pira.com) or Victoria Watkins (email:
vwatkins@pira.com), at (212) 686-6808.

Contact John Graziano regarding PIRA report distribution and address changes
at (212) 686-6808, email: support@pira.com.

NOTE: Circulation of the "Electricity Daily Demand Forecast" outside a
Client's licensed distribution area is strictly prohibited. Clients that are
unsure of their licensed distribution or require an extension of their
current license should contact their PIRA sales representative, or email to
sales@pira.com.

PIRA Energy Group

 - ed051701.pdf
 - ed051701.xls


here is the attachment

	Karen Myer
	12/04/2000 05:16 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc:
		 Subject: Goals - as discussed w/Mark Lindsey

Attached are the 2000 Goals for Public Relations.  We appreciate your
performance response.  Thanks.

Karen Myer
for Mark Lindsey.


Attached is an Associated Press (8/22/2000) article about the
California Public Utility cutting rates for most San Diego residents by 43
percent, as well as, approving a rate cut for San Diego's small businesses
and school districts.


Please forward to Advisory Committee
----- Forwarded by Steven J Kean/NA/Enron on 09/20/2000 09:47 AM -----

	Ann M Schmidt
	09/18/2000 08:59 AM

		 To: Mark Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Meredith
Philipp/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Mary
Clark/Corp/Enron@ENRON
		 cc:
		 Subject: Enron Mentions

Manager's Journal: Heir to Greatness
By Gary Hamel

09/18/2000
The Wall Street Journal
A38
(Copyright (c) 2000, Dow Jones & Company, Inc.)

Sometime in the next few months, the board of General Electric will anoint a
successor to the world's most
celebrated corporate leader. Running GE may be, as Jack Welch claims, the
best job in the world, but his
successor may find it to be one of the toughest as well -- not because
anything is going wrong at GE, but because
so much is going right, and has been for so long.

Mr. Welch's successor will inherit a company that is already stupendously
valuable, that has already shed most of
its unwanted pounds, and has already set a string of performance records. How
do you do better than that?

This is more than a rhetorical question for GE's next chairman. Pity, for a
moment, a few other heirs to greatness.
Doug Ivester was gone just 25 months after following the legendary Roberto
Goizueta at Coca-Cola. Dale Morrison
lasted less than four years at Campbell Soup after taking over from
cost-cutter extraordinaire David Johnson. British
Airway's Bob Ayling got pushed out after he had struggled unsuccessfully to
fill the shoes of Colin Marshall. And
Durk Jager prematurely stepped down as Procter & Gamble's chairman after
failing to live up to the lofty standards
set by earlier P&G leaders.

Pretenders

None of the pretenders succeeded in building greatness on top of greatness.
In three of these cases, the board
brought back a recently retired CEO or chairman to shore up investor
confidence. Sadly, Goizueta, who died in
October 1997, could not reprise his earlier success at Coca-Cola.

GE's next chairman will have to exceed Mr. Welch's near-mythic
accomplishments if GE is to continue to fly high.
Like Cisco, Intel, Wal-Mart, Nokia and any other company that is exploring
the outer atmosphere, GE must struggle
ever harder to resist the laws that threaten to flatten the arc of success:
the law of large numbers, the law of
diminishing returns, and the law of averages.

-- The law of large numbers: Over the past decade GE's market value has
multiplied eleven-fold -- to more than $560
billion from $50 billion at the end of 1990. Sustaining such a breathtaking
pace of value growth gets progressively
harder as a company gets bigger. As the most valuable company on the planet,
GE would need to grow its market
cap to nearly $3 trillion over the next five years to match the 42%
compounded annual growth rate it has achieved
over the past half-decade.

One way of escaping the law of large numbers is to divide big things into
small things. One option for GE would be
to spin out its low-growth businesses as separate companies. Over the past
five years, profits in two sectors --
appliances and plastics -- were essentially flat. Holding these businesses
may generate a positive return on
invested capital, but no investor would keep them inside a growth portfolio.
Why should GE?

If GE's next chairman can't muster the courage to leave the dawdlers behind,
perhaps he -- or she -- should spin out
the stars. Of the eight large business segments for which GE reports results,
two -- GE Capital and NBC -- account
for nearly 50% of GE's five-year profit growth. Sure, GE Capital has
benefited from its parent's dirt-cheap cost of
capital, but from an investor's point of view, these advantages may be more
than offset by the drag of laggardly
earnings growth in other GE businesses. Looking beyond capital and
broadcasting, there are probably a dozen
other high-growth candidates for spin-outs in GE's other sectors.

Mr. Welch's successor shouldn't be afraid to disassemble GE. After all, the
goal is not to make GE the "world's
most valuable company," but to make its shareholders the world's most richly
rewarded. Shareholders don't care
whether GE's stock appreciates or whether it's the stock of companies that GE
has disgorged. Breaking up is hard
to do. But Mr. Welch's successor may find that turning GE into the world's
first $3 trillion company is even harder.

-- The law of diminishing returns: Even the most successful strategies lose
their potency over time. For most of Mr.
Welch's tenure, GE's strategies of choice have been cost cutting and
acquisitions. From its unflinching approach to
downsizing in the mid-1980s, to its more recent dedication to e-business, Mr.
Welch's GE has been imaginative
and unrelenting in excising waste. At the same time, GE's top line has been
buoyed up by a tidal wave of
acquisitions -- more than 300 in the past three years, many outside the U.S.

The payoff to all this cutting and deal making has been steadily accelerating
earnings growth. Net earnings grew
10.8% in 1996, 12.7% in 1997, 13.3% in 1998 and 15.3% in 1999. Looking
forward, power dieting and binge buying
may not be enough to keep GE's earnings escalator rising ever skyward.

There are already signs that GE may be nearing the asymptotic end of the
efficiency curve. Between 1981 and
1990, GE's revenue per employee increased by 187%. Yet over the last decade,
revenue per employee grew by a
more modest 55%, and has been essentially flat since 1996. And while
operating margins in GE's manufacturing
businesses have been steadily improving, GE's net profit margin, after all
adjustments, has remained pretty much
unchanged over the past five years.

What about acquisitions? While industry consolidation still has a way to run,
particularly outside the U.S., it seems
inevitable that it will become harder and harder for GE to find under-priced,
under-managed fixer-uppers. After all, at
the current furious pace of corporate coupling, the U.S. would be left with a
single company by 2010.

That leaves "e." E-commerce will drive new efficiencies into GE's business
processes, but GE is not alone in
striving to e-enable its businesses. E-commerce is rapidly becoming an
information technology arms race -- with
competitors making tit-for-tat investments to reap tit-for-tat efficiency
gains. And while efficiency-besotted CEOs are
counting on the Internet to shrink procurement costs, savvy customers will be
just as creative in using the Net to
beat down prices. Whether GE's enthusiasm for all things "e" produces
long-lasting, peer-beating profit growth
remains to be seen.

GE's next chairman may want to borrow a lesson or two from Enron, which has
been voted America's most
innovative company five years running and displaced GE as the "best managed
company" in Fortune magazine's
last "most admired" survey. Forty percent of Enron's $63 billion market value
comes from businesses the company
wasn't even in three years ago -- all of them are homegrown.

Forget acquisitions. With GE's powerful brand, global reach and fearsome
capacity for execution, there's no reason
GE shouldn't surpass Enron as a business-building champ. It is entirely
reasonable to expect that GE could create
10 to 20 new businesses over the next few years -- with each adding an
average of $5 billion to GE's market value.

Sooner or later GE is going to need an entirely new genre of wealth-creating
strategies -- and a much more
aggressive commitment to internally generated new business development may
well be the most promising
candidate.

-- The law of averages: Over the past five years, GE's price/earnings ratio
has tripled, from just over 16 to more than
48. The company is currently selling at a 65% premium to the market average
P/E. But being a standout performer
for more than a few years at a time is a daunting challenge for any company,
large or small. It seems that no
company can forever escape the steady tug of mediocrity.

At the end of 1999, the Standard & Poor's 500 included 326 companies that had
been in the index for the entire
decade. Fifty-five of these companies, among them GE, managed to deliver top
quartile shareholder returns in as
many as four years out of the previous 10. GE's top quartile results came in
1996, 1997, 1998 and 1999. If GE's
new chairman manages to extend this streak for another four years, GE will
set a new world record, for none of the
326 S&P veterans achieved top quartile returns in as many as eight years out
of 10 during the '90s, and only four
companies -- Oracle, Home Depot, Intel and Cisco -- cleared the bar seven
years out of 10.

If GE can fire up the entrepreneurial spirit in each of its employees, it
just might beat the odds. Like most large
companies, GE seems to be reluctant to encourage employees to start new
businesses by giving them equity
stakes in new ventures. While this isn't the only way to build businesses,
it's one that can't be ignored in a world
where talented employees are often lured away by the promise of a big chunk
of equity in a start-up. GE already
invests in start-ups via GE Equity -- to the tune of $1.5 billion in 1999.
Last year GE also repurchased $1.9 billion of
its own stock. One wonders just what kind of new wealth GE's own employees
might have been able to create if
they had been backed by this kind of capital?

To have any hope of escaping Mr. Welch's shadow, and matching his success,
GE's next chairman will have to
keep a simple truth in mind: If you're trying to achieve unprecedented ends,
you're going to need unprecedented
means. A break-up, a few major spin-outs, a bottom-to-top initiative focused
on making GE as good at creating bold
new businesses as it is at improving existing businesses, an absolute
commitment to doubling or tripling GE's
internal growth rate -- these are all potential candidates for the next big
thing at GE.

Maybe, just maybe, GE will continue to fly high with its current success
recipes. One could argue that as long as
there are companies around the world that aren't as well-managed as GE, Mr.
Welch's magnificent buy-and-improve
engine will have plenty of fuel. Or that GE's Web-smitten executives will
discover Net advantages no one else has
yet dreamed of.

After 20 years under Mr. Welch, GE is habituated to meeting new challenges.
Moreover, GE has a long history of
organizational and managerial innovation -- it was among the first to
decentralize along business unit lines, embrace
disciplined strategic planning, delayer its hierarchical organization, and
commit itself to becoming Webified from
stem to stern. Like the Internet, GE is diverse, global, flat, meritocratic
and non-hierarchical.

Maybe all of this will help GE to become one of the first companies to marry
the rule-busting, business-building
ethos of the "new economy" with the "old economy" virtues of scale,
efficiency and quality. If GE succeeds, there
will be no more talk of new economy and old economy, for GE will have managed
to create a perfect synthesis of
old and new. And the most perfectly developed specimen of the industrial age
will have become the archetype for
the post-industrial corporation -- a company that uses its size and
operational excellence to crush the upstarts, and
its industry-transforming innovation to constantly surprise the old farts.
This is a worthy, and necessary, aspiration
for the next leader of America's pre-eminent corporation.

Mr. Hamel is chairman of Strategos, a consulting company based in Menlo Park,
Calif. He is author of "Leading the
Revolution" (Harvard Business School Press, 2000).

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

Spiraling energy costs creating near-crisis situation
The heat is on consumers
Monday, September 17, 2000

By DAVID IVANOVICH
Copyright 2000 Houston Chronicle Washington Bureau

http://www.chron.com/cs/CDA/printstory.hts/topstory/670583

Abreast of the Market
S&P Index Seemed Tranquil This Year, but...
By E.S. Browning
Staff Reporter of The Wall Street Journal

09/18/2000
The Wall Street Journal
C1
(Copyright (c) 2000, Dow Jones & Company, Inc.)

Amid the storm that has swept the Nasdaq Composite Index this year, the
Standard & Poor's 500-stock index
looks like a sea of tranquility.

Since Jan. 1, it has gone almost exactly nowhere, starting the year at
1469.25 and closing Friday at 1465.81.

But beneath the quiet surface, a furious battle is raging among the S&P's
components, with some of last year's
losers becoming this year's winners.

Some of the most amazing performers are the natural-gas companies, which are
up about 70% as a group so far
this year. "The natural-gas index looks like an Internet stock from a year
ago," says Richard Bernstein, chief
quantitative strategist at Merrill Lynch.

El Paso Energy is up 70% so far this year. KeySpan Energy is up almost 60%.
On top of its stock gain, KeySpan
offers something some investors aren't familiar with: a 5% dividend.

Now the big question is, should investors be plowing their money into the
recent winners, which also include drug
stocks, brokerage-firm stocks and bank stocks? Or is their surge a flash in
the pan that will evaporate as investors
get over their jitters in the fall?

Higher oil prices helped send utility stocks up on Friday, and most other
stocks down. The Dow Jones Industrial
Average fell 1.45%, or 160.47 points, to 10927.00, leaving the blue-chip
index down 2.62%, or 293.65 points, for the
week.

The Nasdaq Composite Index was down 2.01% on the day and 3.6% on the week.
The Dow Jones Utility Average,
however, rose 1.52%, or 5.94 points, on Friday to a record 397.04, leaving it
up 2.78% on the week.

The S&P 500, still the broadest of the major market indexes, dropped 1% on
Friday. But it is just 4% off its record
of 1527.46, set March 24. In contrast, the technology-heavy Nasdaq index is
down 24% from its March 10 high.

Within the S&P 500, though, there have been some dramatic moves. Utilities
are up an astounding 40%, just in the
time since the S&P peaked on March 24, according to Ned Davis Research.
Financials and drug stocks are up
about 16% each -- again, since the S&P hit a record.

Communications stocks, on the other hand, have fallen 25% in that period. The
S&P 500's big tech stocks are
down more than 19%.

Some analysts think the move that is under way is broader than a sector
rotation. Some of the least-wanted stocks
of 1999 have become desirable this year. As huge stocks, such as Qualcomm and
Yahoo!, have sagged, smaller,
once-neglected S&P companies, such as Reebok and Allied Waste, have soared.

The switch can be seen in an index called the Value Line Arithmetic Index.
That index tracks about 1,700
companies and doesn't give any extra weight to the ones with a larger market
value. It is a closer reflection of the
average company, rather than the biggest companies.

So far this year, it is up 13%, eclipsing the S&P 500. The S&P 500 is
weighted according to its members' market
value, which means that it is dominated by the larger stocks. The Value Line
index's strength compared with the
S&P 500 is a clear indication that some of the smaller stocks are making a
comeback, at least for now.

Some of the gains do seem to reflect special circumstances. Utilities have
been helped by an explosion in
natural-gas prices and by a search for stable investments in a turbulent
stock market. Many banks and brokerage
firms have benefited from takeover speculation: Merrill Lynch is up 66% so
far this year; Lehman Brothers is up
69%.

If takeover expectations fade, the brokerage stocks risk a slide. And energy
companies depend on oil and gas
prices, which can make them volatile. Natural-gas bulls note, however, that
natural-gas prices are expected to
remain high for some time, which could keep propelling that group ahead.

"Very few people thought energy prices would remain this high for as long as
they have," notes Donaldson, Lufkin &
Jenrette investment strategist Thomas Galvin. "So you still have people
underweighted both areas, energy and
utilities."

That means that there still are plenty of skeptics out there. If gas prices
stay high, the stocks have room to rise as
skeptics are won over.

But the real trick during the coming months may not be to be in the right
sector, but to be in the right stock, both
men say.

At a time when the economy is slowing and earnings growth will be more
difficult, "you probably want higher-quality
stocks, because they have more stable earnings," Mr. Bernstein says.

When tech stocks or utility stocks are in favor, it is enough to buy a stock
from the group and your stock will go up.
Now investors need to be more selective.

"El Paso and Duke Energy are extremely well managed," says Mr. Galvin, "as is
Enron. But the rising tide in
utilities has lifted all boats, and not all utilities are well enough managed
to take advantage of all opportunities."

The key is choosing the stocks that will withstand the more difficult times
to come, and that won't be easy. People
who bought Intel or Oracle at the start of this year probably feel as if it
wasn't that bad a year for tech. Both, despite
a recent sag, still are up almost 40% this year. Those who chose Microsoft or
Dell, however, took a bath: Microsoft
is down 45% since the year began, and Dell is down almost 30%.

Mr. Galvin thinks tech stocks will stage a fourth-quarter rally, as investors
look for companies that can continue to
build profits in a slowing economy. He points out that analysts expect tech
to post 38% earnings growth next year,
only a bit less than this year's 41%. But benefiting from any rally would
require picking the stocks that will have the
good earnings.

Another way of looking at the uncertain future, says Bob Bissell, president
of Wells Capital Management, is that
there could be some unexpected events. Companies whose stock prices have
fallen could be acquired, or forced to
restructure, which could provide a payoff for investors.

"I am thinking of companies like AT&T," he says. "Something has got to give
there. The stock is down to the low
30s," 47% down from its 52-week high of 61. "Something has got to happen. Do
you fragment the company?"

He also points to midcap stocks, another of the year's strongest performers.
"I call the category `the forgotten
prince,' " he says. The S&P Midcap 400 index is doing even better than the
Value Line index, up 22% since the
year began.

Some midcap companies deserve to be forgotten, of course. But the index also
contains some smaller banks that
could be takeover targets, and it has some fast-growing tech companies too.
"It is getting stronger as the
technological revolution moves companies rapidly from smallcap to midcap,"
Mr. Bissell says.

---

Friday's Market Activity

Soaring energy prices knocked market averages sharply lower.

American Express lost $1.50 to $59.31, Chase Manhattan dropped 1.66 to 49,
and General Electric, which has an
exposure to the group through its financial-services operations, gave up 2.13
to 56.69.

The group also suffered from a cooling in takeover speculation. Lehman
Brothers, for example, fell 8 to 142.50,
Goldman Sachs lost 4.25 to 124.75 and Bear Stearns gave up 4.75 to 65.

Higher oil prices helped Exxon Mobil rise 3.60 to 88.88. It reached a 52-week
high, its first since Dec. 9, while
Amerada Hess climbed 4.56 to 73.25, and touched a 52-week high of its own.

Database software company Oracle (Nasdaq) fell 6.63 to 78.31, with 60 million
shares changing hands. Despite
Oracle's announcement of strong quarterly earnings Thursday after the end of
normal trading, some analysts said
they were disappointed with the company's revenue growth.

Siebel Systems (Nasdaq), an Oracle competitor, added 4.19 to 99. However, i2
Technologies fell 3.69 to 172.19,
while Ariba lost 5.13 to 152.44, both on Nasdaq.

Red Hat (Nasdaq) lost 4.06 to 21.19. The Research Triangle Park, N.C.,
developer of open-source software products
posted a narrower-than-expected second-quarter loss, but left some analysts
disappointed.

Avon Products eased 50 cents to 41.19. The New York beauty-products marketing
concern said late Thursday the
Securities and Exchange Commission is investigating a $10 million charge the
company took in 1999 related to the
write-off of computer software.

Adobe Systems (Nasdaq) moved up 7.25 to 132.63. The San Jose, Calif.,
software developer reported fiscal
third-quarter earnings that topped forecasts.

Maytag fell 2.19 to 33.63, after the Newton, Iowa, home-appliance maker
warned about second-half earnings.

Ivax rose 2.38 to 43.63. The Miami pharmaceutical maker received final
approved from the Food and Drug
Administration for its generic equivalent of Bristol-Myers Squibb's cancer
drug Taxol.

Carnival Corp. gained 1.75 to 22.88, while rival Royal Caribbean Cruises
advanced 1.75 to 24.50. The stocks rose
on hopes that the withdrawal from the market of a smaller competitor will
ease excess capacity.

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

Politics & Policy
The Homestretch
By Gerald F. Seib

09/18/2000
The Wall Street Journal
A40
(Copyright (c) 2000, Dow Jones & Company, Inc.)

The Gore and Bush campaigns will argue over which did better in the debate
over debates, but one winner is clear:
PBS news anchor Jim Lehrer. Not only will he moderate all three presidential
debates sponsored by the bipartisan
Commission on Presidential Debates, but, under an agreement completed over
the weekend, he will do so under
rules giving him more flexibility than ever before. He will be free to bore
in on a specific subject and extend
discussion of it, rather than simply move on to other questions as in the
past. Under the debate agreement, the two
candidates will stand behind lecterns at the opening debate Oct. 3, sit
around a table in talk-show fashion on Oct.
11, and debate in a town-hall format on Oct. 17.

In other campaign developments:

-- Housing policy? In the closest thing yet to a campaign debate on housing
issues, the Republican party's Web
site is trying to entice listeners to dial in to radio talk shows and charge
that Democrats are running "The Slumlord
Ticket." Why? On top of a recent controversy over complaints by tenants of a
rental house in Tennessee owned by
Vice President Gore, the Web site touts the story of a similar headache now
faced by running mate Joseph
Lieberman. An immigrant mother was evicted when she was injured and fell
behind in rent payments at a property
owned by the estate of Mr. Lieberman's wealthy late uncle; Mr. Lieberman is
executor of the estate.

-- A fish story: To the list of the perils of holding public office, now add
the danger of flying fish. Just ask Rep. Helen
Chenoweth-Hage, an Idaho Republican, who was pelted with rotting salmon
thrown by a 20-year-old protester at a
hearing on Western wildfires held in Montana over the weekend. The protester
cried out that the conservative
congresswoman is "the greatest threat to the forest" and uncorked the salmon.
She wasn't hurt, but the Associated
Press reports that "the hearing was recessed while she cleaned salmon from
her hair and jacket."

--- Money Watch

Top "double givers" -- donors of soft money to both parties

In millions

DONOR DEMOCRATS REPUBLICANS TOTAL

AT&T $1.1 $1.8 $2.9
Microsoft 0.8 1.0 1.8
Enron 0.4 1.2 1.7
Freddie Mac 0.6 1.0 1.5
Philip Morris 0.2 1.4 1.5
SBC Comm. 0.7 0.5 1.2
America Online 0.6 0.6 1.2

Source: Common Cause

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

GE Tops Fortune's Ranking of the World's Most Admired Companies; Key To
Staying Ahead of the Pack Is Innovation

09/18/2000
Business Wire
(Copyright (c) 2000, Business Wire)

NEW YORK--(BUSINESS WIRE)--Sept. 18, 2000--For the third straight year,
General Electric, on the strength of its
management team and innovative global strategy, is No. 1 on FORTUNE's ranking
of the most admired companies
in the world. FORTUNE's third annual list of Global Most Admired Companies
consists of 379 companies in 27
industries, with 25 selected as "all-stars" for exemplifying leadership on a
global scale. Cisco Systems came in at
No. 2 on the all-star ranking (up from No. 8 in 1999); other repeat
performers in the top ten include Microsoft, whose
battles with government regulators on one flank and perceptions of a
foundering Internet strategy on the other
caused it to slip to No. 3 from No. 2; Intel (No.4); and Wal-Mart Stores,
which moved up to No. 5 from No. 7. The
complete list of FORTUNE's Global Most Admired Companies appears in the
October 2 issue of FORTUNE and is
available at www.fortune.com as of Monday, Sept.18, at 8:30 a.m.

According to Nicholas Stein's article, "The World's Most Admired Companies,"
the schizophrenic market conditions
of the past year offer one reason why the Most Admired list looks so
different this year. As Stein writes: "The
winners are companies that demonstrated a new-economy style growth strategy
while maintaining an old-economy
approach to fiscal responsibility." And, as Vicki Wright, global managing
director of the Hay Group consultancy that
helped produce the list with FORTUNE notes: "There is something new this year
in how we perceive companies. It
is the emphasis on how much companies are capable of looking forward. In a
year when old-economy companies
have not seen their share price perform, those that have managed to weather
both the old- and new-economy
storms will flourish."

Notable changes among this year's Global Most Admired list include Home Depot
leaping from No. 20 to No. 9,
Toyota moving up from No. 16 to No. 10, and Citgroup advancing from No. 25 to
No. 18. Strong demand for Sony's
flat-screen TVs, digital cameras, and PlayStation game consoles helped the
company move up from 14 to 6.
Newcomers to this year's list -- Enron, Nokia, Charles Schwab, UPS, and
Goldman Sachs -- all embody business
strategies that bridge the old and new economic worlds. Companies that lost
their all-star status -- IBM,
Hewlett-Packard, AT&T, Procter & Gamble, DaimlerChrysler -- have been plagued
with difficulties integrating new
business concepts.

Many of the industry categories also experienced significant turnover. Among
airline companies, Singapore Airlines,
which didn't even make last year's list, took the top spot from Southwest.
British Airways, hobbled by internal
conflict and heightened competition, fell from third to seventh. Though Intel
held on to the top ranking in the
computer hardware and software category, Sun Microsystems rode the dot-com
revolution to second place, up from
sixth last year, while Dell, facing a wireless (and PC-less) future, fell
from fifth to eighth. And in the white-hot
network communications and Internet technology sector, all-star newcomer
Nokia edged Cisco Systems for top
billing.

To find out what unique management qualities set these companies apart from
their peers, the Hay Group surveyed
the Most Admired Companies and their less admired peers about the performance
measures they use to chart the
progress of their companies.

According to their findings, Most Admired companies set more challenging
goals, link the compensation of their
executives more closely to the completion of those goals, and are generally
more oriented toward long-term
performance.

To complete the list of the world's most admired companies, FORTUNE consulted
the experts: the business
executives who run companies, and the analysts who study them. Global
companies were rated according to eight
criteria: quality of management; quality of products or services;
innovativeness; long-term investment value; financial
soundness; ability to attract, develop and retain talent; community
responsibility; and use of corporate assets. To
reflect this list's international scope, a ninth category was added: global
business acumen. A company's overall
ranking is the average of the scores of all nine attributes. Companies are
ranked within their industry, and the top 25
-- the All-Stars -- are culled from across all industry groups.

The October 2 issue is available on newsstands beginning September 25. For
more information, or to schedule an
interview with a FORTUNE writer or editor, contact Nyssa Tussing at
212/522-6724.
The 2000 FORTUNE Global Most Admired All-Stars

2000/1999 Company Industry
Rank

1/1 General Electric Electronics, electrical equipment
2/8 Cisco Systems Network Commun., Internet Tech.
3/2 Microsoft Computer hardware, software
4/4 Intel Computer hardware, software
5/7 Wal-Mart Stores Retail: general, specialty
6/14 Sony Electronics, electrical equipment
7/9 Dell Computer Computer hardware, software
8/NR Nokia Network Commun., Internet Tech
9/20 Home Depot Retail: general, specialty
10/16 Toyota Motor Motor vehicles
11/22 Southwest Airlines Airlines
12/11 Lucent Technologies Network Commun., Internet Tech.
13/NR Goldman Sachs Securities, diversified financials
14/5 Berkshire Hathaway Insurance: property, casualty
15/3 Coca-Cola Beverages
16/NR Charles Schwab Securities, diversified financials
17/17 Johnson & Johnson Pharmaceuticals
18/25 Citigroup Securities, diversified financials
19/15 Ford Motor Motor vehicles
20/13 Pfizer Pharmaceuticals
21/10 Merck Pharmaceuticals
22/21 Walt Disney Entertainment
23/19 American Express Securities, diversified financials
24/NR United Parcel Service Mail, pkg., freight delivery
25/NR Enron Energy transmission providers

NR = not ranked in 1999

CONTACT: FORTUNE, New York Nyssa Tussing, 212/522-6724

08:33 EDT SEPTEMBER 18, 2000

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


Could you please take a look at this and coordinate with Joanie to fix?

Thanks,

Eric
---------------------- Forwarded by Eric Bass/HOU/ECT on 02/23/2000 05:48 PM
---------------------------

Joanie H Ngo
02/23/2000 03:33 PM
To: Eric Bass/HOU/ECT@ECT
cc: Katherine Herrera/Corp/Enron@ENRON
Subject: Southern Union Galveston/Pt. Arthur

Eric,

Could you find some time to look at the new Southern Union contract for
Galveston and Port Arthur?  Pricings are wrong in Sitara so my system
invoices are being understated/overstated each month.

If you want, we could sit down and go over it to see what needs to be done.

Let me know.

Thanks.

Joanie
x36574


fyi
jan red jan 32/33 with sep @392


"Red Herring" <redherring-61399@mailsubs.com> on 06/19/2000 09:02:23 PM
Please respond to redherring-61399@mailsubs.com
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TODAY'S HEADLINES
The New York Times on the Web
Monday, January 28, 2002
------------------------------------------------------------
For news updated throughout the day, visit www.nytimes.com

QUOTE OF THE DAY
=========================
"I was a lot luckier last time. This one involved my whole
family."
-MARK SOKOLOW, who escaped unhurt from the World Trade Center on Sept. 11,
but was injured in a bombing in Jerusalem.

http://www.nytimes.com/2002/01/28/international/middleeast/28MIDE.html?todaysheadlines

NATIONAL
=========================
Efforts to Track Foreign Students Are Said to Lag

Despite promises to tighten controls after Sept. 11, the
government is at least a year from making the student visa
system safer from terrorists.
http://www.nytimes.com/2002/01/28/national/28VISA.html?todaysheadlines

-----

Cheney Is Set to Battle Congress to Keep His Enron Papers
Secret

The White House is prepared to go to court to fight the
release of documents demanded as part of an investigation
into any influence that Enron had in formulating energy
policy.
http://www.nytimes.com/2002/01/28/business/28CHEN.html?todaysheadlines

-----

In a Sign of Changing Times, Bush Calls for More Spending

President Bush's new budget will propose a   spending
increase of 9 percent for next year, more than any
big-government Democrat would dare to put on the table.
http://www.nytimes.com/2002/01/28/politics/28BUDG.html?todaysheadlines

-----

MORE NATIONAL NEWS:
http://www.nytimes.com/pages/national/index.html?todaysheadline

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\---------------------------------------------------------/

INTERNATIONAL
=========================
Sept. 11 Survivor Wounded as Jerusalem Bomb Kills 2

A New York lawyer was one of 113 wounded Sunday when a
Palestinian bomber triggered an explosion in Jerusalem,
killing herself and an 81-year-old man.
http://www.nytimes.com/2002/01/28/international/middleeast/28MIDE.html?todaysheadlines

-----

After Green Beret Operation, Townspeople Have Questions
About Bound Bodies

In dozens of interviews, residents of Oruzgan, Afghanistan,
said a two-hour American raid last Thursday was an error.
http://www.nytimes.com/2002/01/28/international/asia/28AFGH.html?todaysheadlines

-----

American Reporter Held Captive in Pakistan, a Message Says

A Wall Street Journal correspondent has been kidnapped in
Karachi, Pakistan, according to an e-mail message sent on
Sunday to news organizations.
http://www.nytimes.com/2002/01/28/international/asia/28REPO.html?todaysheadlines

-----

MORE INTERNATIONAL NEWS:
http://www.nytimes.com/pages/world/index.html?todaysheadline

BUSINESS
=========================
Cheney Is Set to Battle Congress to Keep His Enron Papers
Secret

The White House is prepared to go to court to fight the
release of documents demanded as part of an investigation
into any influence that Enron had in formulating energy
policy.
http://www.nytimes.com/2002/01/28/business/28CHEN.html?todaysheadlines

-----

American Reporter Held Captive in Pakistan, a Message Says

A Wall Street Journal correspondent has been kidnapped in
Karachi, Pakistan, according to an e-mail message sent on
Sunday to news organizations.
http://www.nytimes.com/2002/01/28/international/asia/28REPO.html?todaysheadlines

-----

For a Hewlett, Merger Raises a Basic Fear

Hewlett-Packard, led by Carleton S. Fiorina, plans to
increase sales to large corporate customers. But that could
lead it down the same path as the troubled PC industry,
worries  Walter B. Hewlett.
http://www.nytimes.com/2002/01/28/technology/ebusiness/28HEWL.html?todaysheadlines

-----

MORE BUSINESS NEWS:
http://www.nytimes.com/pages/business/index.html?todaysheadline

TECHNOLOGY
=========================
For a Hewlett, Merger Raises a Basic Fear

Hewlett-Packard, led by Carleton S. Fiorina, plans to
increase sales to large corporate customers. But that could
lead it down the same path as the troubled PC industry,
worries  Walter B. Hewlett.
http://www.nytimes.com/2002/01/28/technology/ebusiness/28HEWL.html?todaysheadlines

-----

For IDT, the Big Flameouts Light Its Fire

IDT, an offbeat New Jersey telecommunications company, has
made something of a specialty of capitalizing on the flashy
flameouts of the telecommunications crash.
http://www.nytimes.com/2002/01/28/business/28WINS.html?todaysheadlines

-----

Fast Hookup With Cellphone Is Expected From Verizon

Verizon Wireless is expected to announce the availability of
the nation's first commercial "third-generation" wireless
service.
http://www.nytimes.com/2002/01/28/technology/ebusiness/28CELL.html?todaysheadlines

-----

MORE TECHNOLOGY NEWS:
http://www.nytimes.com/pages/technology/index.html?todaysheadline

POLITICS
=========================
Cheney Is Set to Battle Congress to Keep His Enron Papers
Secret

The White House is prepared to go to court to fight the
release of documents demanded as part of an investigation
into any influence that Enron had in formulating energy
policy.
http://www.nytimes.com/2002/01/28/business/28CHEN.html?todaysheadlines

-----

In a Sign of Changing Times, Bush Calls for More Spending

President Bush's new budget will propose a   spending
increase of 9 percent for next year, more than any
big-government Democrat would dare to put on the table.
http://www.nytimes.com/2002/01/28/politics/28BUDG.html?todaysheadlines

-----

Hoping to Run California, and Recast the Republicans

Los Angeles' ex-mayor says he is trying to steer his party
leftward as he seeks the Republican nomination for governor
of California.
http://www.nytimes.com/2002/01/28/national/28CALI.html?todaysheadlines

-----

MORE POLITICS NEWS:
http://www.nytimes.com/pages/politics/index.html?todaysheadline

SPORTS
=========================
Bledsoe Leads Patriots to Super Bowl Against Rams

New-age quarterback Tom Brady went down with an injury,
retro quarterback Drew Bledsoe took over, and New England
beat Pittsburgh in the A.F.C. Championship.
http://www.nytimes.com/2002/01/28/sports/football/28PITT.html?todaysheadlines

-----

A Grouchy Warner Blitzes the Eagles

St. Louis quarterback Kurt Warner picked apart Philadelphia
and pushed the Rams to a win in the N.F.C. Championship.
http://www.nytimes.com/2002/01/28/sports/football/_28RAMS.html?todaysheadlines

-----

No. 1 Duke Rolls On

Shaking off an up-and-down first half, No. 1 Duke came
through when it mattered on its way to a win over No. 7
Virginia.
http://www.nytimes.com/2002/01/28/sports/ncaabasketball/28DUKE.html?todaysheadlines

-----

MORE SPORTS NEWS:
http://www.nytimes.com/pages/sports/index.html?todaysheadline

ARTS
=========================
Recapturing a Spirit of Daring

Christoph von Dohnanyi and the Cleveland Orchestra   proved
that music  making can be both intellectual and thrilling
in recent concerts at Carnegie Hall.
http://www.nytimes.com/2002/01/28/arts/music/28CARN.html?todaysheadlines

-----

Standing In for New Yorkers: Expressions of Grief Over Sept.
11

A new play about a fire captain who lost  eight of his  men
on Sept. 11 has the impact -- half-relieving,
half-agonizing -- of a chill salve on an open wound.
http://www.nytimes.com/2002/01/28/arts/theater/28GUYS.html?todaysheadlines

-----

Hometown Boy Makes Waves

The truly achieved writers are  the ones one who deceive
themselves so well that they  can pursue a lie that becomes
true in spite of its   implacable falsity.
http://www.nytimes.com/2002/01/28/books/28KENN.html?todaysheadlines

-----

MORE ARTS NEWS:
http://www.nytimes.com/pages/arts/index.html?todaysheadline

NY REGION
=========================
Police Shift Focus to Terror With Spymaster and a Marine

Police Commissioner Raymond W. Kelly has added two deputy
commissioners as he reshapes the department to thwart
terrorism.
http://www.nytimes.com/2002/01/28/nyregion/28KELL.html?todaysheadlines

-----

New Jersey to Rule on Keeping Sex Offenders Locked Up After
Prison Release

New Jersey's highest court is expected to determine who
among the state's convicted sex offenders may be
institutionalized after completing their prison sentences.
http://www.nytimes.com/2002/01/28/nyregion/28ABUS.html?todaysheadlines

-----

With Reservoirs Low, Mayor Plans to Issue Drought Warning

With the reservoirs that supply the city at only half
capacity, Mayor Michael R. Bloomberg called on Sunday for a
series of voluntary measures to cut consumption.
http://www.nytimes.com/2002/01/28/nyregion/28WATE.html?todaysheadlines

-----

MORE NY REGION NEWS:
http://www.nytimes.com/pages/nyregion/index.html?todaysheadline

OP-ED
=========================
What's a Recovery Without Jobs?
By BOB HERBERT
While it may be true technically   that the economy is
executing a modest turnaround, it doesn't translate into
more jobs for Americans.
http://www.nytimes.com/2002/01/28/opinion/28HERB.html?todaysheadlines

-----

Colin Powell Dissents
By WILLIAM SAFIRE
What legal rights should be accorded   to the terrorists now
being interrogated at the American military base in Cuba?
http://www.nytimes.com/2002/01/28/opinion/28SAFI.html?todaysheadlines

-----

A Symbionese Family Reunion
By TIM FINDLEY
The main players of the Symbionese Liberation   Army will be
assembled in court, on trial for   the 1975 murder of Myrna
Opsahl, to  tell of old delusions in a pointless  spasm of
violence.
http://www.nytimes.com/2002/01/28/opinion/28FIND.html?todaysheadlines

-----

MORE OP-ED  NEWS:
http://www.nytimes.com/pages/opinion/index.html?todaysheadline

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Market Participants:

The advisory statements for January 2000 have completed posting to your
secure web sites.  Attached below is the version mapping needed for
reconciling your invoices.

(See attached file: January 2000_SA2_Version_Mapping.xls)
 - January 2000_SA2_Version_Mapping.xls


fyi
---------------------- Forwarded by Kay Mann/Corp/Enron on 02/23/2001 03:02
PM ---------------------------

Ernie@ECT
02/23/2001 03:01 PM
Sent by: Ernie@ECT
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Class Confirmation - Wellhead to Burner Tip

You are now enrolled in:

Wellhead to Burner Tip
Class Days and Times:
  4/24/2001  08:00:00 AM - 05:00:00 PM
  4/25/2001  08:00:00 AM - 12:00:00 PM
Room # & Location: EB 552,  Houston
Note:

Click this doclink to review class session information.

If you are unable to attend this class, the registration must be canceled by
5:00 p.m. on  April 19, 2001 to prevent a charge of $ 600 to your RC number.

 We look forward to seeing you at 08:00:00 AM on April 24 - 25, 2001.  Please
call the Development Center Team at 713-853-0357 if you have any questions.

 Thank you.


As you are aware, some lawyers and legal specialists were recently moved into
different groups within our department.  Time and expenses should continue to
be charged through year end to the Cost Centers or WBS Elements which were
already in place.  This is for budget purposes.

This means timekeepers need to continue to enter time as usual --- for the
same people and groups you have been entering time for until we can charge
time and expenses to the new Cost Centers at the beginning of 2001.

In summary, your Cost Center will not change until January 2001.

Janette Elbertson
Enron North America Corp.
Legal Department - EB3326
Telephone:  (713) 853-7906
Fax:  (713) 646-2600
janette.elbertson@enron.com


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Donald,

Ralph from the Alberta Power Pool called to review tag #22872.  He is wondering if this tag should run both this sunday and the next sunday.  If you could please check it out when you have some time on Monday for the following week he would certainly appreciate it.  If there is no problem with the tag then he said not to bother.  The main issue is that the schedule will flow for this weekend.

Any questions please give me a call.

Regards,

Bert Meyers


Mike,

I would like to start asking your group for an estimate for their P&L's daily.  If our numbers come out over or under their tolerance we will call them before we sign off for the night so there are no surprises in the morning.  If you don't have a problem with this I would like to start this today.

Thanks

Kam

x3-5781


We are now finished with the Spring 2000 schedules. If you call InfoBEARS
at 510-642-9400, you should be able to access your spring schedule.
Alternatively, you can go to InfoBEARS via bearlink.berkeley.edu  If you
have problems, let me know. DISREGARD waitlist numbers in InfoBEARS. I will
send waitlist numbers tomorrow that are correct.

If you wish to make further modifications to your schedule, you may do so
beginning January 18, 2000.

Shawn

_________________________________________
Shawn Allison, Associate Director
Evening MBA Program, Haas School of Business
University of California, Berkeley
Tel (510) 643-0435 Fax (510) 643-5902


FERC is holding a week-long conference on Regional Transmission Organizations in Washington  DC.  The conferences will generally be broadcast from 7 a.m. to 2 p.m. PDT.  A copy of the conference agenda and broadcast sound to the conference will be near my desk (behind Tim Belden).  The picture will be on the far-right big screen.

Thanks to Dave Steiner for setting this up.

Alan Comnes


There are several annuities related to the profit sharing of this deal.
First--
All deals should have been made under the ST-NW desk to route with the PGE deal-buy tranny-etc. (I recognize this did not happen but this was my intent and should or could have). Consequently all revenue from this deal originally went into the ST-NW book. Therefore. An annuity was made from ST-NW to ST-WHOURLY. Deal #531524--$23468. Next an annuity was made from ST-Whourly to LT-NW at $5472 to compensate LT-NW for the $48 purchase price (deal #531546). This left a profit of $17996 to be divided between ST-Whourly and L-Pac-30/70. Consequently, ST-Whourly made an annuity to L-Pac for their part of the profit share, Deal #531549--$12597.73. All this left RT with a profit of $5399. If you place all the deals under LT-NW...it will be a large impact on ST-NW, and will result in LT-NW getting paid a couple of times. These profit share numbers are accurate. After expenses--LT-NW gets $5472 for the original deal, then ST-WH gets $5399 and L-Pac gets $12597.73. All these annuities cannot just be killed as they liquidated on the 26th--of February. It is probably a better idea to put everything back under the ST-NW book...ideas?

Questions?

Just come see me and let me know.

 -----Original Message-----
From: 	Thompson, Virginia
Sent:	Thursday, August 30, 2001 8:17 AM
To:	Williams III, Bill
Subject:	LP deal

Bill-

  Please come see me this morning with your comments or suggestions on the LP deal.
  As it is month-end and we have many other things to finish by today, I need to get this off my desk.

  Virginia


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The Integrated Solutions Center (ISC) is redefining its organization to provide world-class, enterprise-wide solutions through innovation, the building of new relationships, and by providing superior customer support.

One of the most exciting changes that the ISC has made is that we will be providing our customers with a single contact number for all support needs.  Customers needing assistance on any ISC supported application will simply call 713-345-4727 and a Customer Care Agent will assist you.

Take a look at our website to see how these changes affect you:  http://isc.enron.com/site


The main issue that I see with the description you sent me is the same one
that we spoke about a few weeks ago.

 What should the consistent market convention for determining the first
tranaction be?  If we use the current NG trading convention we will quote the
premium swap as the "first transaction"  and the discount as the second.
This will present consistency problems if we are trading near parity in the
calendar with different months changing position in the curve. You just have
to look at some of the summer spreads to see the confusion that may result.
Having the near dated swap as the first transaction in all cases would
eliminate that issue but will not match the current trading convention.  I
will check with John to see if he has any opinion on the matter.  The product
description would have to be written such that any customer would be easily
be able to determine the correct direction to trade.

I will discuss this and the entire description with John on Tues. and get
back to you .

Thanks

Pete


Neil Imus pulled out a bound copy of agmt.....Can I get one? Thanks.


Jeremy --

To let you know where we stand on the CPUC's Investigation on DA Suspension.

1.	Sue Mara is leading the effort to respond to the CPUC for Enron.

2.	We knew that the CPUC was at a minimum going to investigate how and/or whether to allow extensions of contracts and the application of other surcharge $$ to DA load given their earlier statements.  The issue on retroactivity is open primarily because they can ask these questions and (I believe) as leverage for other issues.

3.	We are coordinating with the big customers who recently left.  They are marshalling forces to oppose any retroactivity.  This is as much their fight as it is ours.

4.	At this time, Enron will file as a member of AReM.  We intend to oppose the CPUC's request for our contracts and transaction information.

If you want any other info or want to discuss further, let me know.

Jim