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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (113537)	7/19/2001 4:16:16 PM
From: Efthymios H. Zacharias	Read Replies (1) \| Respond to of 436258

Here here!! Renewed my membership this morning

To: Earlie who wrote (113537)	7/19/2001 5:02:01 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

"NORTEL POSTED ONE OF THE LARGEST QUARTERLY LOSSES IN CORPORATE HISTORY...NEARLY 20 BILLION" (this is all known but jarring nonetheless): http://cbs.marketwatch.com/news/story.asp?guid=%7BF719B7D2%2DDCBA%2D431B%2DBD82%2D6EAB09F4FF41%7D&siteid=mktw Nortel suffers $19.4 billion loss Fiber-optic giant doesn't see turnaround until next year By Jeffry Bartash, CBS.MarketWatch.com Last Update: 4:41 PM ET July 19, 2001 TORONTO (CBS.MW) - Slumping phone-equipment giant Nortel Networks, as expected, posted one of the largest quarterly losses in corporate history - nearly $20 billion. After stock markets closed on Thursday, Nortel unveiled a net loss of $19.4 billion, or $6.08 a share, in the second quarter, compared with income of $745 million, or 26 cents, a year earlier. Both periods included onetime charges. About two-thirds of the loss, $12.3 billion, stemmed from a writedown in intangible assets whose value has sharply eroded. Nortel obtained the assets during a series of acquisitions at the height of a stock market boom, which ended in early 2000. Excluding the writedown and other onetime charges, Nortel said it lost $1.55 billion, or 48 cents a share, compared with profit from operations of $637 million, or 21 cents, a year earlier. Results were in line with the company's previously reduced estimate. Before it issued an earnings warning last month, Nortel was projected to lose 6 cents a share in the second quarter. Revenue for continuing operations slumped to $4.6 billion from $7.2 billion a year earlier. Like other equipment makers, Nortel has suffered from shrinking demand and excessive capacity as phone carriers sharply scale back capital spending. Many smaller carriers - once active customers of Nortel -- have also gone out of business amid the global economic slowdown. To counter lower sales, Nortel has cut thousands of jobs, curtailed manufacturing operations and tightened spending. Industry analysts don't expect an industry turnaround until the first half of 2002, at the earliest. Nortel echoed that view. "As a result, our visibility continues to be limited for the near term and we will not provide guidance for the third quarter or full year 2001 at this time," Chief Executive John Roth said. See news release. Shares of Nortel (NT: news, chart, profile) ended up 17 cents to $7.75 in Thursday action. The stock is down 90 percent from its 52-week high of $89. In mid-June, Nortel stunned Wall Street with news of its impending loss. It also slashed its revenue estimate by 28 percent. The setback forced Nortel to suspend its dividend payment, reduce manufacturing capacity and announce the elimination of 10,000 positions. That will bring the number of job cuts this year to 30,000. "While I am disappointed with our results for the second quarter, we have taken the right steps in this environment to strengthen Nortel Networks leadership position," Roth said. "I know this has been a very difficult process for employees, shareholders and our other stakeholders; however, it has been absolutely necessary that we take these steps." The second-quarter deficit follows on the heels of a loss of $2.6 billion, or 82 cents a share, in the first quarter -- more than triple its loss in the 2000 first quarter.

To: Earlie who wrote (113537)	7/19/2001 5:48:33 PM
From: Ilaine	Read Replies (1) \| Respond to of 436258

Earlie - re: GATA - I think they are talking about the Exchange Stabilization Fund ("ESF"). Ran across a couple of things about the ESF yesterday - sorry, no smoking guns. Message 16095897 P.S. what will really curl those hairs is the fact that the ESF was created using funds that the US got from devaluing its gold from $20.67 to $35 in 1934. That was after the US made it illegal for citizens to hold gold - FDR made US citizens sell their gold to the US for $20.67, then raised the price to $35. Not all the money went to the ESF, some went to the IMF. Harry Dexter White, whom I mention in the linked post, was the US architect of the IMF, the World Bank, and the ESF - and apparently a Soviet agent. Truth is stranger than fiction.