CONTACTS 

SUBJECTS
Recession Reduced Earnings Stock Prices Decimated
Steepest Decline for 3rd Quarter Since 1991
Problems More Serious Long Lasting than Expected
Enron High Flying Energy Company Forced into Merger
Meltdown Analysis Connecting Dots Too Many People Having Too Many Pro
Enron Example Bad Management Reduces Productivity Earnings Stock Pric

4708 -    ..
4709 - Summary/Objective
4710 -
471001 - Follow up ref SDS B1 0000, ref SDS B0 0000.
471002 -
471003 - Reuters reported today Enron Corp. raced to complete an $8 billion
471004 - merger with Dynegy Inc., a much smaller utility holding company, in a
471005 - desperate bid to salvage fast-crumbling energy empire. ref OF 11 YP4K
471006 -
471007 - Just a year ago, Enron's market value was around $80 billion.  Enron
471008 - faced pressure to do something before running out of cash. ref OF 11
471009 - 00FO  Enron's stock has fallen from a year-high of $84, closed at
471010 - $8.63. ref OF 11 X46K
471011 -
471012 - Enron is the nation's largest natural gas and electricity trader.
471013 - Problems began last month with disclosures about questionable business
471014 - deals. ref OF 11 006L
471015 -
471016 -     [On 020204 Enron collapsed in bankruptcy using bad management to
471017 -     avoid accountability that caused a critical mass of bumbling.
471018 -     ref SDS B2 N97F
471019 - ..
471020 - Some 90 percent of Enron's revenues, which totaled nearly $140
471021 - billion in the first three quarters of 2001, come from trading energy.
471022 - The company also trades a host of other commodities and has natural
471023 - gas pipelines. ref OF 11 004O
471024 - ..
471025 - Substantial loss of investor confidence had reduced Enron's
471026 - financial flexibility.  The company has drawn down bank credit lines,
471027 - faced looming debt payments and may have increased margin requirements
471028 - from nervous trading partners. ref OF 11 006O
471029 - ..
471030 - Enron, once exalted by Wall Street as a money-making paragon of
471031 - the new economy, has come apart at the seams following disclosures of
471032 - of -balance-sheet deals now under investigation by the U.S. Securities
471033 - and Exchange Commission for possible conflicts of interest.
471034 - ref OF 11 00DN
471035 -
471036 -      On 920229 similar problem at Chips and Technologies, ref SDS 2
471037 -      6632, that later led to merger with Intel.
471038 -
471039 - Enron's collapse increases worry that the economy is in a recession,
471040 - following prior reports....
471041 -
471042 -    Too many people having too many problems...001207, ref SDS 90 V54M
471043 -    Productivity falls 1st time in 5 years.....010509, ref SDS A0 0001
471044 -    Labor cost rise steepest in 6 yeas.........010605, ref SDS A1 0001
471045 -    Stock prices fall poor earnings............010705, ref SDS A5 0001
471046 -    Economy steepest decline since 1991........011031, ref SDS B0 0001
471047 -    Jobless worst 2 decades....................011102, ref SDS B1 0001
471048 -
471049 - Reflects implosion of management described in NWO. ref OF 5 TQ4O and
471050 - ref OF 5 7501
471051 -
471052 - Andy Grove reports in his book Only the Paranoid Survive improving
471053 - management is like walking through the valley of death, reviewed on
471054 - 980307. ref SDS 58 1660
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