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To: Suresh who wrote (36043)	1/30/2002 4:50:38 PM
From: Logain Ablar	Respond to of 67867

Suresh: I think the catalyst over the past few days was the director and the 20M payment but really its more fundamental. They just acquired the Tyco financial and are now spinning it off from memory they paid a hefty premium (wasn't it 50 to 75% over market when the deal was first announced). I think this change of direction is the biggest factor. Yes everyone points to the accounting but they were cleared by the sec a few years back. Also in the fwiw department the PSFT ptrn was much more within the acct guidelines than ene's.

To: Suresh who wrote (36043)	2/4/2002 12:30:00 PM
From: shasta23	Respond to of 67867

HI Suresh! Are you adding to your position after this or are you concerned now for the longer term outlook? This is a very high volume drop and might lead to a rebound short term... Stefan marketwatch.com Elan drops on profits warning Company says 2002 earnings hit by higher costs By Nerma Jelacic, FT.com Last Update: 11:12 AM ET Feb. 4, 2002 LONDON (FT Investor) - Elan, the Irish drug company, came under renewed pressure Monday as its U.S.-listed shares declined as much as 40 percent after the troubled company issued a profits warning for 2002. In recent trading on the New York Stock Exchange, Elan's stock tumbled $12.03 to $17.92. Shares in Elan (UK:ELA: news, chart, profile) (ELN: news, chart, profile), which is listed in Dublin, London and New York, fell 19.10 per cent to £16.75 in the UK while they slipped 7.35 per cent to €31.50 in Ireland. The drugmaker said in its 2001 earnings report that its 2002 figures would be hit by late product launches and higher costs. In its statement on Monday, the company said: "Elan expects earnings for 2002 to be affected by slower than anticipated growth in total revenue due to the later introduction of new products, the revenue contribution in 2001 from the product rationalisation programme and certain costs that will be incurred in 2002 required to position its pharmaceutical business for future growth and complete its transition from a drug delivery company to a biopharmaceutical company." Dropped Its 2001 results were in line with expectations with revenues a record $1.9bn, up 22 per cent. Fourth-quarter earnings per share were $0.56 and total revenues $487.6m compared to $424.4m for the same quarter of 2000. The company said it anticipated a return to double-digit growth in revenue and earnings in 2003. Elan shares dropped more than 20 per cent last week after concerns were raised over its accounting practices in the wake of the Enron affair. Newspaper reports raised questions about how Elan accounted for its drug development joint ventures. In a statement issued last week, Donal Geaney, chairman of Elan, said the company's practices are in accordance with the accounting rules of Ireland and the United States.