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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (142946)	2/27/2002 11:04:15 AM
From: tejek	Read Replies (2) \| Respond to of 1575094

An interesting piece of information............ ____________________________________________________________ Too Many Coincidences Surround Skilling By James J. Cramer 02/27/2002 10:02 AM EST Read More Click here for the latest from James J. Cramer Those of you who think that Jeffrey Skilling really got off the Titanic in Ireland and was not on the bridge when it hit the iceberg -- including you senators -- do you understand the way puts work? I think Skilling does, even if he isn't an accountant. The best piece of evidence against Skilling that we have is an LMJ partnership document from October 2000 that Skilling saw because he is noted as having been in attendance at the meeting for the partnership. At that meeting, Skilling heard that if Enron's stock broke below $48 there could be all hell to pay. The "hell" was that LMJ wrote a massive amount of puts struck there that it couldn't cover without Enron issuing a massive amount of stock that would ruin all of the Street's estimates. Skilling knew that once this stock broke $48, it was all over for these clowns. Skilling also quit the company when the stock got to $48 for family reasons. Maybe one of those family reasons has to do with how little fun it would be to go to Astros games knowing you were the CEO who checked off on issuing millions and millions of shares of stock if your stock broke $48, as it did that August. Of course, all of this stuff could be a healthy coincidence. And as someone who wrote and sold puts for 20 years, I can think of an instance, or maybe two, where there was a coincidence. But then there are the thousands of other instances where it wasn't. The broker who wrote those puts for the partnership ought to be subpoenaed -- not by the committee, but by the Justice Department. That guy knows it all. He isn't going to come forward because I am sure he made so much money betting against Enron at $48 that he would be worried about disgorging profits. But that guy knows. Let's get him. He was next to Skilling when the ship hit the iceberg. He might even have steered it onto that collision course! -------------------------------------------------------------------------------- James J. Cramer is a director and co-founder of TheStreet.com.