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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?


To: pilapir who wrote (9697)4/18/2002 10:47:12 PM
From: StockDung  Read Replies (1) | Respond to of 19428
 
Microsoft Says 3rd-Qtr Net Rises; Reduces Forecasts (Update5)
By Dina Bass

Redmond, Washington, April 18 (Bloomberg) -- Microsoft Corp. said fiscal third-quarter sales and earnings rose less than forecast. The world's largest software maker reduced estimates for this quarter and fiscal 2003, sending the shares down 7.5 percent.

Net income in the period ended March 31 rose to $2.74 billion, or 49 cents a share, from $2.45 billion, or 44 cents, a year earlier, Microsoft said. Sales rose 13 percent to $7.25 billion from $6.4 billion.

Microsoft's sales and profit are being hurt by lower-than- forecast sales of Xbox, its money-losing video-game console, and a slowdown in demand for personal-computer programs and corporate software. Chief Financial Officer John Connors in an interview said the market for PCs and software is still ``challenging'' as the U.S. economy rebounds from a recession that began in March 2001.

``It's pretty disappointing,'' said Noah Blackstein, manager of the $200 million Dynamic Power American Fund. He plans to sell the fund's holdings of 40,000 Microsoft shares today. ``They missed the numbers and they guided lower, and the stock's going to follow the earnings.''

Microsoft shares dropped as low as $52.15 after the earnings report. They fell 26 cents to $56.37 in regular U.S. trading before the release. The stock has lost 17 percent in the past year.

For the recent quarter, Microsoft had forecast profit of 50 cents to 51 cents a share on sales of $7.3 billion to $7.4 billion. Net income for the quarter included a 15-cent gain from the sale of Microsoft's stake in Internet travel service Expedia Inc., and a 14-cent loss from impairment of investments.

Xbox

The shortfalls last quarter and in the current period are mainly the result of disappointing sales of Xbox, which went on sale in the U.S. in November, Connors said.

Chief Executive Steve Ballmer two weeks ago took on direct oversight of the Xbox business from President Rick Belluzzo, who investors said did a poor job managing Microsoft's consumer businesses. Belluzzo will leave the company later this year.

The software maker, which released the console in Europe and Japan last quarter, had predicted 4.5 million to 6 million in Xbox unit sales this fiscal year. Connors said Microsoft now expects to sell 3.5 million to 4 million of the devices. By the end of fiscal 2003, he expects to sell 9 million to 11 million units.

``Xbox sales in Europe and Japan were a little lighter than expected,'' said Connors, who declined to provide specific numbers.

Sales in the period ending in June will be $7 billion to $7.1 billion, the Redmond, Washington-based company said, while analysts surveyed by Thomson Financial/First Call on average expected $7.65 billion. Profit this period will be 41 cents to 42 cents a share, compared with the average forecast for 44 cents.

Profit for the year beginning in July will be $1.89 to $1.92 a share, Microsoft said. Analysts polled by First Call expected an average of $2.01 a share. Sales will be $31.5 billion to $32.4 billion, less than forecasts for $32.6 billion.

Spending

Microsoft plans to spend about $800 million more than analysts estimated in fiscal 2003 on product development, research and investment, Connors said. The company will hire more employees and give workers raises, he said.

The investments will be made in areas such as building up the sales force for small and medium-sized business products, server software and programs for developers, Connors said. Microsoft also will invest in security and financial incentives to gain customers for its Internet service, as well as Xbox and software for tablet- sized PCs, storage and mobile devices.

``We have to make prudent and sometimes difficult short-term profit decisions to sow the seeds of the future,'' Connors said on a conference call.

PC Demand

Some investors disagreed. John Faig, analyst at American Express Financial Advisors, which manages about $100 billion in equities and held 30 million Microsoft shares as of December, said the company should focus more on profit margins.

``The top line has stalled,'' he said. ``They spend a huge amount on R&D. They should pull back.''

Gross margin, or the percentage of sales left after subtracting production costs, narrowed to 81 percent in the recent period from 86 percent a year earlier, squeezed by unprofitable products such as Xbox and Internet services.

The company is predicting that demand for computers and software will be worse than many analysts expect, he said.

Unit sales of PCs will rise at a percentage in the ``small single digits'' in fiscal 2003, Connors said. Companies also are reluctant to spend on server computers that run networks and Web sites.

Windows XP

Sales of the Windows XP program for PCs fueled an 11 percent third-quarter gain in PC operating-system sales to $2.29 billion. The program, which went on sale in October, has sold more than 32 million copies.

Sales of software and services for servers rose 1.8 percent from a year ago to $1.28 billion. Analyst John McPeake at Prudential Securities expected growth of 9.5 percent.

The slower growth came as more server programs are being sold through multiyear contracts, where Microsoft recognizes revenue over the term of a contract instead of up front, Controller Scott Boggs said on a conference call.



To: pilapir who wrote (9697)4/19/2002 11:09:37 AM
From: StockDung  Read Replies (1) | Respond to of 19428
 
TODAYS HUMOR->Hartcourt Capital Retained by ONSE Telecom for Private Placement

Hartcourt Subsidiary Partners With SASCO

To Provide Private Investment Services

LOS ANGELES, April 19 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT) www.hartcourt.com , announced today that its subsidiary, Hartcourt Capital Inc., together with Swan Advisory Services Company Ltd (SASCO), have been appointed as joint financial advisors by ONSE Telecom Corporation, www.onse.net , to assist the company in completing a private share placement of up to US$100 million worth of new shares. Hartcourt Capital is providing services on an advisory and performance fee basis.

ONSE Telecom Corporation is a full service Korean Telecom company providing local and international long distance, data services for broadband, IPLC, Frame Relay and ATM, Internet services for ISP, portals, IDC and e-commerce, and other value-added services for corporate and private consumers. The company operates one of Korea's largest ISP's, Shinbiro, and introduced broadband service in 2000. ONSE Telecom's has numerous local and international licenses and dual redundant backbone networks supported by multiple core switches, each operating independently with 25 nodes for Internet services and 14 nodes for domestic ATM, providing complete coverage of Korea. The company staffs over 700 employees and audited revenue in 2001 were US$229 million.

"The Korean telecommunications sector has been experiencing unprecedented growth, and possesses one of the world's highest penetrations of broadband access and mobile phone usage. ONSE Telecom Corporation is well-positioned within the sector and we are planning to expand our services and markets," said Mr. G.Y. Hwang, CEO of ONSE Telecom. "We are very pleased to retain Hartcourt Capital and SASCO's services, to assist us in a private share placement to fund our operative and strategic development. We all look forward to taking the next steps in fulfilling our long range company goals."

"It is a great opportunity for Hartcourt Capital to provide investment advisory services for ONSE Telecom Corporation, one of the leading telecommunications providers in Korea," stated Dr. Wallace Ching, CEO of Hartcourt Capital Inc. "Korea has one of the world's most progressive communications markets and ONSE is well positioned to capture significant market share in various segments of the sector. The additional funding will assist the company in achieving its strategic goals and increase their role in Korea's rapidly growing telecommunications industry."

About Hartcourt Capital, Inc.

The Hartcourt Companies, Inc. newly established investment-banking arm Hartcourt Capital, Inc. acts as a bridge between high-growth Chinese companies and the U.S. capital markets. It provides a wide range of strategic and financial advisory services covering mergers and acquisitions, fund raising, private placement, restructuring, and public market listing via initial public offering (IPO) or reverse merger. In addition to serving China's high growth private company sector, Hartcourt Capital is also an integral part of Hartcourt's strategy and business model, introducing innovative and promising companies into the Hartcourt network to complement and enhance competitive advantages throughout the organization. Detailed information on Hartcourt can be obtained via the company's Web site: www.hartcourt.com .

Forward-looking statements

The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward- looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward- looking statement.

MAKE YOUR OPINION COUNT - Click Here

tbutton.prnewswire.com

SOURCE The Hartcourt Companies, Inc.

CO: Hartcourt Companies, Inc.; Hartcourt Capital Inc.; Swan Advisory Services Company Ltd; ONSE Telecom Corporation

ST: California, Korea, China

SU:

prnewswire.com
04/19/2002 06:00 EDT



To: pilapir who wrote (9697)4/19/2002 3:49:12 PM
From: StockDung  Respond to of 19428
 
FBI says government received al-Qaeda threats against banks in Northeast





By Ted Bridis
ASSOCIATED PRESS
April 19, 2002

WASHINGTON – The FBI said Friday that officials had received unsubstantiated information that terrorists were considering attacks against U.S. banks in the Northeast. Government officials said the threat came from the al-Qaeda terror network.

Authorities cautioned that they had no information about a specific plot or threats to any specific financial institution.

A U.S. official, speaking on condition of anonymity, said the warning is the result of information the intelligence community received from interviews with captured al-Qaeda suspects from Afghanistan.

The information was given to the FBI which, along with the Homeland Security Office at the White House, decided to remind financial institutions of the need to be vigilant.

In Pittsburgh, Attorney General John Ashcroft noted that no specific institutions were named and there were no specific threats. The information "may or may not be reliable," Ashcroft said.

The FBI warning went to banks and law enforcement in Virginia, Maryland, Delaware, Pennsylvania, New York, New Jersey, Connecticut, Massachusetts, Rhode Island, Maine, Vermont, New Hampshire and the District of Columbia.

The FBI said the decision to issue the warning came after discussions among the Justice Department, Office of Homeland Security and the Treasury Department.

The FBI said the nation's threat status remains at "yellow," using the new system of color codes assigned by the Justice Department and Office of Homeland Security. The threat status for the Northeast similarly was unchanged at yellow, the FBI said. Yellow represents the midrange of threat status.

A U.S. official said it was significant that both the region and the banking community itself remain on "yellow alert," meaning the threats did not meet the criteria for a higher alert. To require an orange alert, the threats would have had to include a specific time and date and have corroborated and credible, the official said.

The warning followed a bomb threat earlier in the week against an unspecified national bank in downtown Washington. Many bank branches shut down but there was no explosion. Police later said the threat was a prank by a 13-year-old Dutch boy.

Friday's warning came on the seventh anniversary of the bombing of the Alfred P. Murrah federal building in Oklahoma City.

The FBI announcement came a few hours after the Treasury Department blocked financial assets belonging to a Pakistan-based group and nine people believed to have provided financial support to al-Qaeda, the terror network operated by Osama bin Laden.

The Treasury Department, which worked with the FBI on the warning against banks, is monitoring the situation closely. But banking regulators did not order banks to close.

"The FBI has said they have a responsibility to alert Americans when they are aware of a credible threat so that people can make informed decisions on their own," a Treasury Department spokeswoman said.



To: pilapir who wrote (9697)4/19/2002 6:39:41 PM
From: StockDung  Respond to of 19428
 
they need George Bailey, Its a Wonderful life-> Argentina Closes Banks Indefinitely to Block Deposits (Update3)
By David Plumb

Buenos Aires, April 19 (Bloomberg) -- Argentina closed banks indefinitely in an effort to block a rising outflow of deposits.

Central Bank Vice President Aldo Pignanelli told the Argentine Banks Association that the closure would last until Congress approved legislation halting withdrawals, according to a copy of an internal association memo obtained by Bloomberg News. A central bank spokeswoman declined to comment beyond confirming that banks had been closed.

Argentines have pulled as much as 350 million pesos ($111 million) a day from banks this week, in part by obtaining court injunctions against the government's freeze on accounts, economists estimate. Argentina froze deposits in December in an effort to prevent a collapse of the banking system as savers rushed to withdraw funds, anticipating the government's $95 billion debt default and currency devaluation.

Total deposits dropped 11 percent to 71 billion pesos this year even as the government imposed withdrawal restrictions, said Standard & Poor's analyst Gabriel Caracciolo.

Franklin D. Roosevelt took a similar step to close banks in the U.S. to halt a banking panic during the Great Depression.

On March 4, 1933, the day after taking the oath of office, he declared an indefinite banking ``holiday'' until Congress passed legislation giving him emergency powers over financial institutions. The bill was passed and the following week the healthiest banks were allowed to reopen while weaker banks were shuttered.

Congress Bill

President Eduardo Duhalde plans to send a bill to Congress as early as this weekend that would convert blocked deposits into government bonds and halt further withdrawals, presidential spokesman Eduardo Amadeo said on TodoNoticias television.

Economy Minister Jorge Remes Lenicov and Central Bank President Mario Blejer arrived in Washington D.C. today for the International Monetary Fund's spring meeting, where they hope to convince the fund and U.S. officials the country can meet conditions for new loans.

Remes Lenicov has scheduled some 19 meetings over three days, including with U.S. Treasury Secretary Paul O'Neill and National Security Advisor Condoleeza Rice today. Remes declined to make comments to reporters after his meeting with O'Neill.

The Argentine peso dropped more than 4 percent to 3.13 per dollar, declining for a third day.



To: pilapir who wrote (9697)4/22/2002 1:05:47 PM
From: StockDung  Respond to of 19428
 
Newsweek: CIA Played Critical Role in Raid on Al Qaeda Operatives Hiding in Pakistan, Including bin Laden's Key Deputy, Shot In Groin: 'If He's Singing, It Will be in A Higher Pitch'

Sources See Agency Making Headway in the War on Terror;

Under Tenet the Atmosphere is 'Wartime,' Says One Top Official

NEW YORK, April 21 /PRNewswire/ -- Though the CIA won't reveal any details, the agency played a critical role in the massive raid staged last month against Al Qaeda operatives hiding out in Pakistan, including Abu Zubaydah, Osama bin Laden's key deputy charged with running terror operations on the ground, Newsweek has learned. The raid was the result of months of agency planning. Zubaydah was shot in the groin trying to flee. "If he's singing, it will be in a higher pitch," said a CIA official.

(Photo: newscom.com )

The CIA's success in Afghanistan -- the agency's ability to get on the ground quickly, join up with Northern Alliance fighters, and guide U.S. Special Forces teams to the enemy -- came as a surprise and a relief to many intelligence experts, inside and outside the government, reports Assistant Managing Editor Evan Thomas in the April 29 issue (on newsstands Monday, April 22). But the earlier fall of the Taliban in Afghanistan had brought little celebrating at CIA headquarters in Langley, VA. "We understood that here comes the hard part," said a top official. "Even if we do catch bin Laden, the leadership will be quickly replaced. It's just like a drug cartel."

There has been a rising tide of criticism aimed at an intelligence service whose successes and failures over the years have been shrouded in myth and controversy. Critics portray the agency as a timid, politically correct bureaucracy, overly concerned with being held to account by the press and Capitol Hill. And senior CIA officials interviewed by Newsweek concede that the agency has gone through some dispiriting times, a period of scandals, drift, and second-guessing that reached a low point by about 1995. The agency was spread thin, losing disgruntled old hands -- and in hindsight -- insufficiently aimed at the hard target of terrorism. But it is focused now. Since 9-11, the agency has been deluged with job applicants and showered with dollars by Congress, enabling the CIA to add more case officers (the agency refuses to reveal the total, but the overall number is surprisingly small).

These officials contend that well before September 11 the agency was rebuilding its "clandestine service," the spy handlers who gather HUMINT, human intelligence, and run covert actions. The men at the top of the CIA do not predict miracles: creating a cadre of experienced case officers who can recruit and run agents inside terrorist cells is a very slow and chancy process. "We're about half way there," said a top official. Before 9-11, CIA officials say the agency had "scores" of assets reporting on Al Qaeda, though only a few sources were actual terrorists since getting inside a terrorist organization is extremely difficult. The notion that an American can work his way in by putting on a burnoose, speaking Arabic, and "hanging around the mosque," is "cowboy stuff," says one top spymaster.

The agency is doing better on the war on terror than its critics would suggest, according to Newsweek interviews with present and former agency officials and knowledgeable outsiders. While some intelligence experts remain gloomy, most agree that the CIA is making gradual headway against a very difficult foe. One major terrorist attack, of course, could make even that carefully hedged assessment sound like so much wishful thinking, Thomas writes. The resourcefulness and courage of the CIA men who infiltrated Afghanistan shortly after 9-11 is beyond doubt. The agency had to cope with uncertain allies. The local warlords were sometimes more interested in fighting each other than the Taliban. And the Northern Alliance was thoroughly penetrated by Taliban spies, who reported back on the CIA's presence and location. The CIA "bought more Taliban leaders than it killed," said one official. The price tag was anywhere from $50 to $100,000 (always paid in U.S. dollars, the preferred currency).

And morale has greatly improved at the agency under the direction of George Tenet, who became director in 1997. These days, the atmosphere at the agency is "wartime," says one top official. "I have never seen anything like it in 30 years." But it it's rush to catch up with Al Qaeda, the agency may act too hastily. One former official notes that almost all the Africa analysts at headquarters were arbitrarily re-assigned to the Counter-Terrorism Center. This ex-spook fears that the agency will go overboard and forget the reforms and controls of the last 30 years.

And the CIA still has to endure a grilling on Capitol Hill for its role in the 9-11 disaster. Agency officials say that the investigators will turn up some missed signals but no major blunders that could have been reasonably foreseen and avoided.

(Article below. Read Newsweek's news releases at

newsweek.msnbc.com. Click "Pressroom.")

A Street Fight The CIA was in serious trouble. Then came September 11. How it's getting in

the game -- in Afghanistan and beyond.

By Evan Thomas

Parachuting supplies to CIA operatives working behind enemy lines is a tricky business, even in an age of Global Positioning Systems and spy-in-the-sky satellites. Supplies meant for the Alpha or Bravo team sometimes land on the Echo or Foxtrot team. Last fall one frustrated spook, hiding at a secret drop zone near Kandahar, sent this coded message to his handlers: "waited three hours through all possible windows: only one airplane passed and kicked off one bundle: some bags of beans and rice ... and two bags of horse feed rpt horse feed. we do not have any f---ing horses."

Other CIA paramilitary officers did have horses, however. And they rode them to victory, in an improbable, partly planned, partly improvised assault on the Taliban that combined high-tech and ancient modes of war. The CIA's success in Afghanistan -- the agency's ability to get on the ground quickly, join up with Northern Alliance fighters and guide U.S. Special Forces teams to the enemy -- came as a surprise and a relief to many intelligence experts, inside and outside the government. There had been a rising tide of grumbling and at times outright mockery aimed at an intelligence service whose successes and failures over the years have been shrouded in myth.

The critics have not gone away. In recent books and articles a small but outspoken chorus of former CIA case officers has portrayed the once proudly swashbuckling agency as a timid, politically correct bureaucracy, overly concerned with being held to account by the press and Capitol Hill. Senior CIA officials interviewed by Newsweek concede that the agency has gone through some dispiriting times, a period of scandals, drift and second-guessing that reached a low point by about 1995. The agency was spread thin, losing disgruntled old hands and -- in hindsight -- insufficiently aimed at the hard target of terrorism.

It is focused now. Though the CIA won't reveal details, the agency played a critical role in the massive raid staged last month against Qaeda operatives hiding out in Pakistan, including Abu Zubaydah, Osama bin Laden's key deputy charged with running terror operations on the ground. (Zubaydah was shot in the groin trying to flee. "If he's singing," said a CIA official, "it will be in a higher pitch.") Since 9-11, the agency has been deluged with job applicants and showered with dollars by Congress, enabling the CIA to add more case officers (the CIA refuses to reveal the total, but the overall number is surprisingly small). Well before 9-11, these officials contend, the agency was rebuilding its "clandestine service," the spy handlers who gather humint (human intelligence) and run covert actions. The men at the top of the CIA do not predict miracles: creating a cadre of experienced case officers who can recruit and run agents inside terrorist cells is a very slow and chancy process. "We're about halfway there," said a top official.

How is the CIA really doing in the war on terror? The answer is: better than the agency's more vocal critics suggest. The more difficult question remains whether "better" is good enough. The CIA likes to say that its successes remain secret, while its failures (like a recently busted spying operation in Russia) make the headlines. Nonetheless, it is possible to get at least a partial look inside the shadow war. Newsweek interviewed present and former agency officials and knowledgeable outsiders to put together a picture of the agency's progress. While some intelligence experts remain gloomy, most agree that the CIA is making gradual headway against a very difficult foe. One major terrorist attack, of course, could make even that carefully hedged assessment sound like so much wishful thinking.

The resourcefulness and courage of the CIA men who infiltrated Afghanistan shortly after 9-11 is beyond doubt. Newsweek interviewed a member of the first team that went in, a former Army Special Forces soldier who joined the CIA in the mid-'80s. Rick (not his real name) shipped out with his team -- two CIA case officers who speak Farsi and Dari, two former Special Forces operators (a former Navy SEAL and Rick), a communications specialist, a medic and three air crew -- on Sept. 19, eight days after the terror attacks. On earlier missions into northern Afghanistan, agency case officers had nearly died in local helicopters ("flying coffins," said Rick), including one that had been chased by a Taliban MiG fighter. So the agency bought a better chopper from the Russians and stenciled on a memorable tail number: 91101. After 9-11, the agency did not wait to obtain landing rights from surrounding countries as it moved its team into northern Afghanistan, and it ignored the military's careful requirement that any commando raid be backed up by an "extraction plan" and search-and-rescue teams. If the CIA group got into trouble it was on its own.

As even Pentagon officials will concede, the CIA can move more nimbly than the military in these situations. It is lucky that the agency has any paramilitary force -- its "special activities" group had atrophied after the cold war, dwindling to a skeleton force by 1997. It is also fortunate that the agency had maintained contacts with the Northern Alliance through several earlier, unsuccessful attempts to track and target Osama bin Laden. Landing in the northwest corner of Afghanistan on Sept. 26, Rick and his NALT (Northern Alliance Liaison Team) found their local allies willing to fight the Taliban but woefully lacking in supplies. The first mission was to call in airdrops of "beans, bullets and cold-weather gear," said Rick. (Many of the Afghans were wearing sneakers and sandals.) For themselves, the agency men requested good leather saddles, to improve on the wooden ones provided by their hosts. The NALT team was followed by five more six-men teams, Alpha in the northwest, Bravo at Mazar-e Sharif, Charlie in the west, Echo and Foxtrot in the south. The agency teams secured HLZs -- helicopter landing zones -- for military Special Forces who arrived with their laser target designators to enable American air power to strike Taliban positions. (Rick named his HLZ after his daughter.) Relations between the military and the CIA -- touchy in the past -- were relatively smooth. Rick was an old friend of the commander of the Fifth Special Forces. "I'd just pick up the SAT phone and call him," he says.

The NALT leader, Joe (not his real name), a case officer who had been about to retire with 30 years' experience when 9-11 happened, radioed back to Washington that he was "confident" the Taliban would break under bombardment. CIA Director George Tenet brought this on-the-ground evaluation directly to President George W. Bush. By the beginning of November, with little visible progress on the battlefield, some of Bush's top advisers were starting to wonder: is it time to send in heavy reinforcements of U.S. troops? But the agency's man was proved right: by early December, the Taliban was in full rout.

The CIA did have to cope with uncertain allies. The local warlords were sometimes more interested in fighting each other than the Taliban. And the Northern Alliance was thoroughly penetrated by Taliban spies, who reported back on the CIA's presence and location. At one point, a Taliban counterattack threatened to overrun one CIA-Northern Alliance position. While the CIA forces opened fire with automatic weapons, their Afghan protectors hid behind a rock. "Get up! Get up and fight!" shouted a CIA man. Came the reply: "This is not our village. This is not our fight." The CIA man shouted back, "What the hell does it look like? I'm from this village?" The Afghans joined in the battle and the Taliban was repulsed. The every-man-for-himself ethos showed up again at Thanksgiving. The CIA tried to airdrop frozen turkeys to its men, but the Afghans got there first. The Northern Alliance dined on turkey with all the fixin's. The CIA men ate beans.

Some of the airdrops were bundles of $20 bills. The CIA "bought more Taliban leaders than it killed," said one official. The price tag was anywhere from $50 to $100,000 (always paid in U.S. dollars, the preferred currency). "A package of a million dollars looks about like this," said Rick, spreading his arms about two feet wide. Headquarters cabled the operators on the ground to inquire what steps were being taken to safeguard the cash. "We're sleeping on top of it," cabled back the team leader.

In December, when Qaeda and Taliban remnants fled into the mountains near Tora Bora, CIA team leaders warned that the border into Pakistan was "totally porous," said Rick. Central Command would not commit U.S. ground forces, and Afghan and Pakistani efforts to close the door were sometimes halfhearted. At the CIA no one was surprised when bin Laden and most of the top Qaeda leadership got away. "We are in full pursuit, and we will find them," a senior CIA official told Newsweek.

The fall of the Taliban brought little celebrating at CIA headquarters in Langley, Va. "We understood that here comes the hard part," said a top official. "Even if we do catch bin Laden, the leadership will be quickly replaced. It's just like a drug cartel." Because the 9-11 attacks caught the intelligence community by surprise, it was widely assumed that the CIA had failed to penetrate Al Qaeda. Agency officials were exasperated when congressmen demanded to know: how come John Walker Lindh, a California teenager, could join Al Qaeda, while the CIA was shut out? In fact, say CIA officials, the agency had "scores" of assets reporting on Al Qaeda before 9-11, though only a few sources were actual terrorists. "So what?" scoffs Robert Baer, a former case officer and one of the agency's harshest critics. "They've got somebody whose cousin has a friend who knows somebody. All these sources didn't warn them about 9-11."

Getting inside a terrorist organization is extremely difficult. The notion that an American can work his way in by putting on a burnoose, speaking Arabic and "hanging around the mosque" is "cowboy stuff," says one top spymaster. During the cold war, the best CIA assets were all "walk-ins," disillusioned Russian military or KGB officials who "self-recruited" -- offered their services to the Americans, sometimes to show their disgust with the communist system, sometimes for cash, often for both. In the war on terror, the most useful turncoats still walk in. Before 9-11, the CIA received on average about 15 volunteers a month offering to spy on Al Qaeda. After 9-11, the rate increased to 15 a day. Almost all are worthless -- nuts, visa-seekers, scam artists. And the occasional useful walk-in is generally a "scumbucket," says a top spymaster -- a thief, a kidnapper, or worse.

CIA officers have always been willing to take risks and go into the "street" to meet would-be spies. But in the mid-'90s, there was a reluctance to recruit assets who could become problem cases. At Langley, the bureaucrats were fearful of being dragged before a congressional committee to justify how they could have hired a "human-rights abuser." Now the cautious approach is "gone," says one high-ranking agency official. "We've sent out every possible guidance: we're taking risks."

The CIA often works with foreign intelligence services to penetrate terrorist groups. The services of some Arab states do not labor under the same constraints as the CIA. "The Egyptians, they're kick-a--. They can do things we can't do," says one CIA official. The Egyptians, as well as the Jordanians and probably others in the Middle East, have been known to arrest whole families in their quest for information. But foreign security services have their own agendas and divided loyalties.

One case officer described his attempt to enlist the services of an intelligence officer working for an unnamed country, a "state sponsor" of terrorism. At first, he got some help from an unusual source. In a casual conversation with the wife of the CIA case officer, the wife of the foreign intelligence officer volunteered that her husband had close ties to a terrorist group. The CIA case officer met with the woman, who offered to help the CIA gain access to her husband's files. But it might be necessary, the woman suggested, for her husband to have "an accident." "We don't do that," the CIA man explained. The wife seemed disappointed. ("It was an arranged marriage. She detested him," explained the agency man.) The woman agreed to help the CIA, even to take a lie-detector test. She stipulated that there were only two things she would not do: personally kill her husband or take off her burqa. "It was clear," the CIA man said, "that of the two, killing her husband would be easier for her." In the end, despite the wife's help, the CIA man never did make an agent of the intelligence officer. Sometimes the culture gap is too wide.

Navigating such treacherous and unfamiliar territory requires exceptional experience, subtlety and skill. Bedeviled by declining budgets and a hostile press and Congress after the 1986 Iran-contra scandal, the CIA became scattered, sclerotic, unsure of its post-cold-war role. From the perspective of 9-11, it's obvious that the agency should have zeroed in on global terrorism. But the agency's various "customers," the federal agencies who count on its intelligence gathering, were also interested in economic spying, nuclear proliferation, the war on drugs and other priorities.

Morale has greatly improved under Tenet, who became director in 1997. Though initially suspect as an outsider -- he had been staff director of the Senate intelligence committee -- Tenet became popular for his plainspoken and boisterous manner. A basketball and Motown fan who has been known to sing golden oldies in his office, Tenet wisely bonded with Bush by personally delivering his intelligence briefing almost every morning. After 9-11, Tenet's White House connection amounted to job insurance.

In its rush to catch up with Al Qaeda, the agency may act too hastily. One former official notes that almost all the Africa analysts at headquarters were arbitrarily re-assigned to the Counter-Terrorism Center. This ex-spook fears that the agency will go overboard and forget the reforms and controls of the past 30 years. On Capitol Hill the CIA still has to endure a grilling for its role in the 9-11 disaster. "The fact is we had a catastrophic intelligence failure. The whole reason we have an intelligence community is to avoid catastrophic intelligence failures," says one CIA official. Agency officials say that the investigators will turn up some missed signals but no major blunders that could have been reasonably foreseen and avoided. That remains to be seen: congressional investigations have a way of taking on a life of their own. Investigators will look closely at the poor handoff of information between the CIA and the FBI. In the meantime the agency will be scrambling to avert the next nightmare.

In the past presidents had often turned to the CIA when all else failed. Covert action is very tempting when diplomacy doesn't work out or the cost of military action is too high. In real life the CIA often does get stuck with Mission: Impossible. It should be no surprise when the real-world result is less than a success. The difference this time is that the stakes are so high -- as high, or higher, than during some of the longest hours of the cold war. With an enemy fanatically determined to use weapons of mass destruction to kill as many Americans as possible, failure is not an option.

With Colin Soloway in Washington

SOURCE Newsweek

CO: Newsweek

ST: New York, Pakistan

SU:

prnewswire.com
04/21/2002 10:39 EDT



To: pilapir who wrote (9697)4/22/2002 4:55:31 PM
From: StockDung  Read Replies (1) | Respond to of 19428
 
Famous stock market bull James J. Cramer switches to bear camp after his readers lose their money

itulip.com

The "Old" J.J. Cramer
Bullish in 2000

"We are still long Cisco. Bought some more yesterday. It has been a poor performer though. Maybe that is enough."

- James J. Cramer - January 1, 2000

Cramer averaging in on CSCO at $50 (theStreet.com 1/1/2000)

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"I have a word for that. It's called 'the bottom.' Again, if you want to know why this market bottomed, I urge you to read my most recent version of the checklist that I set up during the bear market to tell you how to determine when you could get bullish again."
- James J. Cramer - Jan. 8, 2000

Calling the bottom (TheStreet.com 12/8/2000)

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"Once again, I reiterate that the bear phase is over. This rally looks like the real deal. It has the financials and the techs and the drugs all up. Maybe we bounce down a little off NDX 3000, but then we just reload and go through."
Sorry to be so unabashedly bullish. But nobody else I know is, so it seems fine with me.

- James J. Cramer January 11, 2000

The Bear Phase Is Over (TheStreet.com 12/11/2000)

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"Just makes me feel even more right. As does the action in these so-called broken tech stocks. That's bullish action coming from short-sellers covering, value buyers saying, 'I guess this is my chance' and momentum guys saying, 'I better get in and make a couple of good-looking charts before they take the money away!' That, my friends, is genuine tinder for a lasting rally."
- James J. Cramer January 12, 2000

Lasting Rally (TheStreet.com 12/12/2000)

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"We said we took off a lot of those shorts at 2500. We took off the remainder of the shorts at 2200. We have no shorts. That's what you do when you think you are around the bottom."
Covering shorts at NAZ 2200 (TheStreet.com 12/22/2000)

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Still Bullish in 2001
"You know I have been adamant that this is a new bull market. You know that I went on record blasting those Nasdaq 1500 sirens. But there are still persistent emails from people asking me if this is just one more big bear spike.

"To which I say, give me a break. Tape this checklist to your forehead if you can't remember it and nail-gun it to the bears in your firms and households. It might put them out of their misery for good!"

- James J. Cramer - Jan. 23, 2001

Top 10 Tells Why This Is a Bull Market (TheStreet.com 1/23/2001)

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"Nasty Friday selloff. Nasty. And to me it means an opportunity to put money to work. I am using typical bull-market rules. You get these profit-taking pullbacks and they inspire tons of worry. They make people nervous as heck. They shake out the weak holders."
- James J. Cramer - Feb. 2, 2001

Don't Get Too Rattled by This Selloff (TheStreet.com 2/2/2001)

The "New" J.J. (Pinoccio) Cramer


Finally bearish after NASDAQ falls 60%
"It is bad to be in a bear's den in a bull market, but I keep thinking of all the mail I get from people who are thrilled that we--this site--have been pretty unrelentingly negative about tech during this sell-off. We are proud of that. I can't stress how riddled the whole client base in this country is with cellphone stocks. They are cancers on your portfolio, though, and I don't think a cancer gets better with time." - James J. Cramer - Feb. 27, 2001 Bear's Den (2/27/2001) "And unlike you, I have been pretty negative on tech for a long time. ( Click for Audio) I have not been on television saying I would load the boat up with tech. At the beginning of the year, I frowned on a long QQQ (Amex: QQQ - news) strategy right in the face of a proponent of it on CNBC. I thought it foolish. I am not someone who has advocated riding tech all the way down from 5000 and am now telling you to get out. The opposite is true. I am a credentialed tech bear and I am not going to have it pinned on me that I just got bearish on tech, as so many others around me have. I made great money last year betting against tech and was vocal about it. I told you as late as yesterday to take those prices we had in the rally and reposition. Look, often it doesn't seem worth it to go through the aggravation or the heat I am getting for this negativity. I swear, unfortunately, that it is much easier to be Joe Battipaglia or Abby Joseph Cohen or Tom Galvin than it is to be me. They get credit every time it goes up and they look like white knights every time it goes down. They seem like the friend of capital. When I say sell I seem like the enemy. Objectively, in the real world of professional money, however, that is wrong. These people are, in the real world of big-time performance management, regarded as glad-handers who would have annihilated you if you listened to them. I am from the real world of big-time money management. I'd rather be right and make money than be wrong and make everybody feel happy." - James J. Cramer 3/15/2001

Special message from J. J. Cramer for Re-loaders* March 17, 2001 Dear RealMoney.com Subscriber, It's still not too late to for me to show you how to save your portfolio. Join me next Wednesday evening, March 21 in New York City at the University Club and I will show you how to utilize my management driven stock picking strategy to guide your portfolio back to safety. All you have to do is simply join me for 3-hours. In that small but invaluable amount of time, I'll show you how to effectively use my strategy to: -- Pick stocks that will result in growth by identifying companies with top corporate leadership practices -- Devise a clear-cut investment strategy that shows you how to invest for the reality of wealth -- not the pipe dream of overnight riches -- Understand & effectively utilize time horizons, diversification & "Buy and Hold" vs. long term management concepts to choose the 'right' stocks for your portfolio I'm looking forward to meeting you next week Again, the location is the The University Club, New York City, Wednesday March 21, 2001, from 6-9 p.m. Click here to register thestreet.com
or call TheStreet.com Customer Service Department at 1-800-562-9571, Monday-Friday, 8am-8pm EST. Sincerely, Jim Cramer
Co-founder/Chief Markets Commentator
TheStreet.com PS: Act now because as a RealMoney.com subscriber, you can register at the special discounted price of $279 for the conference, a $20 savings off the regular price of $299! Click here to register, thestreet.com,
or call 1-800-562-9571, today! * Re-loader
Definition: A sucker with a track record of naivety, ignorance, or just plain stupidity, hence a scam artist'spreferred customer. Comment: A sucker who has proven his vulnerability is more likely to fall for a subsequent, properly constructed scam than the average person in the telephone directory. For example, a classic follow up fraud is to approach someone who has been defrauded and sell him services to "recover" previous losses. The smartest investors and traders learn from someone else's mistakes, which is good, because nobody lives long enough to make all the mistakes himself. Many people seem to learn only from their own mistakes. Some poor, lost souls don't even learn the hard way. They become "reloaders," two-time losers, or even serial victims. Better Business Bureau Tips for Businesses



To: pilapir who wrote (9697)4/23/2002 2:54:23 PM
From: StockDung  Respond to of 19428
 
JUST ANOTHER DAY ON W S-> "Speaking in a voice so soft, she was asked to speak up several times, Fiorina testified that she did not disclose the updated projections to shareholders because ``it would be irresponsible to do so.''"

HP Attorneys Claim Merger Deception

By BRIAN BERGSTEIN
.c The Associated Press

WILMINGTON, Del. (AP) - Lawyers for dissident Hewlett-Packard Co. shareholder Walter Hewlett cited internal company memos and personal documents in court Tuesday as evidence that executives deceived investors about the financial prospects of HP's proposed $19 billion purchase of rival Compaq Computer Corp.

In opening statements in Hewlett's attempt to overturn a shareholder vote approving the deal, Hewlett lawyer Stephen Neal claimed HP executives knew as late as a few days before shareholders were set to vote on the deal last month that internal projections showed the financial benefits would fall well short of what HP publicly touted.

A personal journal entry Compaq CEO Michael Capellas made in late February or early March was headed ``sobering thought'' and said ``at our course and speed we will fail.''

At the same time, a select group of HP and Compaq executives held regular meetings on the merger's progression and consulted a chart that showed the widening gap between current projected financial benefits of the merger and what was promised when the merger was initially proposed to shareholders in an SEC filing. The series of charts was presented to the judge Tuesday, but was kept from view of the courtroom to protect company secrets.

Neal also presented an e-mail from a member of HP chief financial officer Bob Wayman's staff who had conducted one internal study on the financials. The message to Wayman said ``The attached is a frightening reality check. ... I see little realistic upside and I am not alone. I sincerely hope we all start acknowledging the realities soon.''

Neal said HP's internal projections showed the deal would likely reduce the combined company's earnings per share by as much as 25 percent rather than boost them, at least in the near term. He also suggested that HP suddenly found a way to make the numbers work once the judge ruled to let Hewlett's suit go to trial.

HP chairwoman and chief executive Carly Fiorina took the stand first, insisting that the company's original projections were based on the best estimates at the time and that it was known that they were subject to change.

Speaking in a voice so soft, she was asked to speak up several times, Fiorina testified that she did not disclose the updated projections to shareholders because ``it would be irresponsible to do so.''

Fiorina testified for 90 minutes before the lunch break. Her testimony was to continue when court resumed.

The official certification of HP's shareholder vote on the deal, first announced seven months ago, is expected within days, but Hewlett is asking a Delaware Chancery Court judge to invalidate those results.

Hewlett first fought the deal in a public relations battle with HP on the grounds that buying Compaq was too risky and would bog HP down in the weak personal-computer market at the expense of its profitable printing division.

In his lawsuit, he contends HP won its slim majority in the March 19 shareholder vote by threatening to take business away from at least one big investor, Deutsche Bank, in addition to hiding unflattering information about HP and Compaq's ability to carry out the merger.

Neal claimed Deutsche Bank was promised $1 million bonus if deal was approved. That payment was approved by HP chief financial officer Bob Wayman without Fiorina's knowledge, Neal told the court.

Fiorina personally thanked head of Deutsche Bank for ``going to bat for us'' with the bank's proxy committee, Neal said, citing a voice-mail, which Fiorina ended by saying, ``I look forward to doing business with you'' in the future.

Hewlett-Packard has denied wrongdoing, and Deutsche Asset Management has said it merely voted the shares it controlled in the best interests of its investment clients.

HP attorney Steven Schatz said the signoff was typical for any conversation with an investment bank and said there are other memos showing the merger plan was ahead of schedule.

``The shareholders vote should be honored,'' Schatz said. ``Management integrity has been impugned on the flimsiest of bases.''

In a scene normally reserved for popular sporting events and concerts, about 100 people - mostly attorneys, investors and journalists - lined up outside the courthouse. Some had paid others to stand in line overnight to ensure they would get inside the courtroom.

``This is a such high profile case, everybody's afraid they're not going to get a seat for the trial,'' said Rob Campbell, 27, an employee at a local courier service who was paid $20 an hour by a law firm to line up outside the courthouse at 3 a.m.

The trial, being heard by one of the court's expert business judges and not a jury, is expected to last three days. The Delaware Chancery Court in Wilmington, which has jurisdiction over the governance of companies that are incorporated in the state, including HP.

A preliminary tally released last week by an independent proxy certifying firm found that 51.4 percent of HP shares were voted for the Compaq deal, and 48.6 percent came out against. With more than 1.6 billion shares voted, HP beat Hewlett by 45 million shares - a margin of less than 3 percent.

Hewlett hopes Chancellor William Chandler III negates the vote either by voiding certain investors' shares or by determining that HP corrupted the entire process by buying votes.

Hewlett believes Deutsche Asset Management originally voted 25 million HP shares against the deal but switched 17 million just before the shareholder meeting, which came days after Deutsche Bank helped arrange a $4 billion credit facility for HP.

In trading Tuesday on the New York Stock Exchange, shares of Palo Alto, Calif.-based HP fell 35 cents to $17.92. Shares of Houston-based Compaq lost 73 cents, 6.8 percent, to $10.

On the Net:

hp.com

compaq.com

Opposition site: votenohpcompaq.com


04/23/02 14:40 EDT