To: H James Morris who wrote (140060 ) 3/1/2002 1:11:00 PM From: Glenn D. Rudolph Respond to of 164684 This may interest some. I did some editing to shorten this" "Rapaport TradeWire - March 1, 2002 ---------------------------------- News: Fine better quality rough prices remain firm. Shortages of 2-4 carat G+ VS1+ polished are driving market prices higher. Demand is not great, but supplies are non-existent. U.S. retail seasonally sluggish. Consumer confidence fell for first time since December. Tiffany's 2001 sales declined 4% to $1.6 billion with U.S. comps off 8%. UNITA leader killed by Angolan government. Fancies: Princess cuts remain hot with premiums for very square stones. Radiants and large Emerald Cuts doing well. The rest of the fancy shapes are relatively weak, although large better quality Pear Shapes still an item. Shortages of G+ VS1+ goods in larger sizes persist." "Retail was sluggish this week with slow store traffic. Lower price point jewelry remains the strongest seller. Jewelers are starting to think about re-stocking for summer, but concerns over misaligning inventories in the present slow economy make retailers reluctant to purchase anything other than basic fill-in merchandise. The U.S. Commerce Department says that Q4 GDP grew 1.4%, but a report that consumer confidence dipped in February has kept retailers conservative. "The trading-down phenomenon during the fourth quarter, and frankly throughout the year, meant that customer moved to somewhat lower, but not necessarily low, price points," said Mark L. Aaron, Tiffany's vice president of investor relations. "There was significant activity at higher price points in jewelry with diamonds and other precious stones. In fact, unit levels were close to the prior year in the fourth quarter. Simultaneously, there was robust demand in silver jewelry and other jewelry without stones. However, trading-down affected most categories to one degree or another."" ""While confidence has weakened from January's level, both components of the Index still point to healthy consumer spending in the months ahead," Franco said. "The consumer will continue to provide solid spending support as the economy moves into recovery."" "--- Ashford Again Facing NASDAQ Delisting The NASDAQ sent notice to luxury e-tailer Ashford.com, informing the company that it no longer meets the $1 minimum bid-price requirement for continued listing. Shares stood at 23 cents on February 25. Ashford has until May 15 to regain compliance or it faces delisting. Ashford management said it has planned a shareholder meeting for March 14 to vote on a proposed merger that would sell all of Ashford's outstanding shares to Global Sports Inc., a developer and operator of e-commerce businesses. If approved, the merger is expected to take place promptly after the meeting. The transaction is valued at approximately $14.2 million. Ashford first received notice about its failure to meet the $1 minimum requirement from the NASDAQ in April 2001. Management announced the proposed Global Sports merger in September."