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To: Ex-INTCfan who wrote (44553)	11/29/2001 10:19:12 AM
From: Cactus Jack	Read Replies (1) \| Respond to of 65232

Ex-INTC, The lives of many of those employees -- who have lost lifetimes of savings (though putting all one's money in company stock is by definition a high risk, regardless of the company) and now may lose their jobs -- have sure been jolted. If/When it comes out that the folks on top cooked up a smokescreen that allowed this to happen, the ripple effect could be enormous. The implications of this to the markets could be equally far-reaching. This whole mess is tragic, and looks like it could have been avoided. jpgill

To: Ex-INTCfan who wrote (44553)	11/30/2001 11:43:15 PM
From: stockman_scott	Respond to of 65232

CEOBeat: Brocade Comms (BRCD) BRIEFING.COM - Robert J. Reid] As part of our CEOBeat series in which we interview company executives and offer our observations, we spoke with Greg Reyes, Chairman and CEO of Brocade Communications (BRCD 32.47 +0.77). Background Brocade makes Fibre Channel fabric switches and software for storage area networks (SANs). Brocade's Fibre Channel fabric switches interconnect servers and storage subsystems in a SAN creating a highly reliable and scalable environment for storage applications. Its products are available in multiple configurations to meet all SAN requirements from entry-level to midrange/departmental to enterprise. Competition Brocade faces competition from other developers of Fibre Channel interconnection products including McDATA (MCDT), InRange (INRG) and Qlogic (QLGC). As the SAN market evolves, non-Fibre Channel interconnection products may also pose a threat, particularly Storage-over-IP (SoIP) leader Nishan Systems (private). Other non-Fibre Channel based emerging products include using Gigabit Ethernet, 10 Gigabit Ethernet, and Infiniband. The Conference Call The company affirmed guidance for the current quarter. The clear focus of the call was Brocade's next-generation architecture, specifically the upcoming 2 Gbit/sec products, including the SilkWorm 12000 128 port Core Fabric Switch. During Q4 (Oct), Brocade began shipping its SilkWorm 3800 Enterprise Fabric Switch, which is the industry's first 2 Gigabit per second (Gbit/sec) Fabric Switch. It was an important quarter because the actual release of the 2 Gbit/sec products should accelerate the market transition to a 2-gig world. Being first is clearly important and this should further solidify Brocade's leadership position in the space. The Interview The clear benefit for customers in a 2-gig world is that they get twice the performance at the same price which makes it an easy decision for corporate IT departments. These products save customers money quickly. The competitive landscape looks favorable for Brocade as its competitors will need another 2-3 quarters to introduce their competing 2-gig products. Much has been made in the last week on reports that the Silkworm 12000 core switch was officially late as Merrill Lynch had been expecting to receive the switch on Nov 15 but is still waiting for it. We posed the question to Mr. Reyes, but he said it was untrue and ridiculous. The product is currently in beta trials and should start to see actual sales in the first calendar quarter next year. Addressing concerns about IP-based storage replacing Fibre Channel down the road, Reyes again did not agree. As the economy has slowed, the appetite for raw technology has "evaporated." Companies developing the IP-based systems are 2-3 years away from being able to do the things that FC can do now. FC is massively deployed and remains the dominant architecture. One of the IP-based companies, Nishan Systems, recently laid off workers. Also, funding for IP start-ups has become increasingly difficult as the tech-happy IPO days are over. Private investors understand they will not see the massive returns in the IPO market seen 18 months ago. Our Take There's no denying the company continues to deliver the goods. Brocade has met or beaten consensus estimates every quarter since it went public in mid-1999. Brocade continues to solidify its leadership in SANs and the market's transition to a 2-gig world is a great opportunity for Brocade as it will again be the first mover in this new architecture. For what it's worth, CIBC World Markets says the quality of earnings for the qtr was dubious, with management using aggressive accounting practices for the period. We are not as quick to write off any competing technology as management. While it may be years down the road, investors tend to look down the road when making investment decisions. As you can see by the chart, the stock has already made a nice run so we see little reason to chase it up here.

To: Ex-INTCfan who wrote (44553)	12/2/2001 7:09:38 PM
From: stockman_scott	Respond to of 65232

Enron Files Bankruptcy, Sues Dynegy Sunday December 2, 5:49 pm Eastern Time By C. Bryson Hull HOUSTON (Reuters) - Shattered energy trader Enron Corp. (NYSE:ENE - news) filed for Chapter 11 bankruptcy on Sunday and hit rival and one-time suitor Dynegy Inc. (NYSE:DYN - news) with a $10 billion breach of contract lawsuit for pulling out of a last-ditch rescue merger. The filing in federal bankruptcy court in the Southern District of New York sought protection from creditors while Enron, burdened with at least $16.8 billion in debt and obligations, tries to reorganize its ruined finances. Under Chapter 11 of the U.S. bankruptcy code, a company can continue to operate while it and creditors work out a reorganization plan. The lawsuit, filed in the same court, accuses fellow Houston energy trader Dynegy of wrongfully terminating a $9 billion merger deal last Wednesday. The suit also seeks to stop Dynegy from exercising its option to obtain Enron's Northern Natural Gas Pipeline. The units that own Enron's pipelines were not part of the bankruptcy filing. ``We are taking the steps announced today to help preserve capital, stabilize our businesses, restore the confidence of our trading counterparties, and enhance our ability to pay our creditors,'' Enron Chairman and Chief Executive Officer Ken Lay said in a statement. Enron's dramatic crash has seen its market capitalization go from more than $80 billion a little more than a year ago to about $220 million based on its Friday closing price of 26 cents on the New York Stock Exchange. That is a far cry from Enron's high of $90.56, reached in August 2000. To help it re-capitalize its once-esteemed North American trading business, Enron said it is in negotiations with banks and financial institutions to get credit to back any trades. Enron said it would provide traders and back-office support staff, and would operate through its EnronOnline Internet trading platform. Fourteen of Enron's subsidiaries -- were included in the filing, which must be accepted by the bankruptcy court before it can proceed. Enron's Portland General electric utility subsidiary, which is being sold to Northwest Natural Gas Co. (NYSE:NWN - news) for $1.8 billion and $1.1 billion in assumed debt, was not included in the filings. PIPELINE AT HEART OF SUIT The breach-of-contract suit against Dynegy, another expected legal salvo, has at its heart a valuable asset that is a steady cash flow generator and constitutes more than half of Enron's 30,000 miles of pipelines. One longtime Enron observer questioned Enron's chances of proving its claim. ``The Dynegy lawsuit is going to make interesting reading, but I don't think they are going to get very far with it,'' Sanders Morris Harris analyst John Olson said. Dynegy spokesman John Sousa said his company had not yet had time to review the lawsuit, but said it remains confident in its position that Enron's post-merger announcement disclosures constituted a ``material adverse change'' in Enron's businesses. Such a change would allow Dynegy to pull out. ``We believe that we are within our legal rights to exercise this provision and it would have been a breach of our fiduciary responsibility to our shareholders not to do so,'' Sousa said. The $1.5 billion in cash that Dynegy and its minority owner ChevronTexaco (NYSE:CVX - news) pumped into Enron on the merger's announcement was secured by an option to buy the 16,500-mile pipeline, which Dynegy exercised on Thursday. Dynegy Chairman and Chief Executive Officer Chuck Watson said that Enron's disclosure, made in a Nov. 19 regulatory filing, that it had less cash than previously thought and that it would immediately have to pay off a $690 million started the downfall of the merger. ``The next day the market killed them. And guess what? So did the counterparties. So they start leaving them in droves. So the business came crashing down with the stock price,'' Watson in an interview Friday with Reuters. Enron then frantically began searching for more cash to staunch the bleeding, but could not find it. Watson said that when rating agency Standard & Poor's cut Enron's credit to junk status Nov. 28, he and his board decided to terminate the merger deal. Enron will dispute that version of events, and most observers expect it to claim that Dynegy entered the agreement in bad faith, as a way to eliminate its bigger rival. LAYOFFS COMING The massive layoffs that are expected to accompany the bankruptcy filing will now become reality. Enron said it would implement ``substantial workforce reductions,'' primarily from among the 7,500 workers employed at its Houston headquarters. It gave no firm numbers, but sources said the number of cuts -- expected to be in the thousands -- would be made clear on Monday. Enron will also continue its previously planned campaign to sell off non-core and underperforming assets, many of them global holdings that are valued around $6 billion. Enron is also working with lenders to obtain debtor-in-possession financing to help it maintain its payroll and other operational expenses. Discussions are expected to be done shortly, the company said. Sources with knowledge of the talks indicated that initial financing would be around $1.5 billion. Enron was the top U.S. energy trader with $100 billion in revenues and $1 billion in profits last year, but has unraveled with stunning speed since mid-October when it declared a third-quarter loss and a billion-dollar reduction in shareholder equity linked to questionable off-balance sheet deals. The piecemeal disclosures about problems never seemed to end, and each one chipped away at Enron's credibility and destroyed and destroyed investor confidence in its management. Its descent into bankruptcy was hastened as partners fled its key energy trading business and was all but sealed when Dynegy pulled out. In its announcement, Enron made no mention of the more than two dozen shareholder lawsuits that have been filed, accusing Enron of making fraudulent claims about the value of its business and of hiding financial losses. Enron is by no means out of the woods yet. The U.S. Security and Exchange Commission is investigating the off-balance sheet deals, while two Congressional inquiries are expected as well. Enron's legal adviser on the bankruptcy is New York firm Weil, Gotshal and Manges, and its adviser on the restructuring is the Blackstone Group LLC.