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Markets & Stocks
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Pulling the plug on Enron
graphic November 28, 2001: 8:04 p.m. ET

The only story that matters today: How Enron, the biggest energy trader in the world, now stands on the brink of bankruptcy.
By Andy Serwer
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NEW YORK (CNN/Money) - Wednesday will be remembered as the day Enron tanked the market. Huge company. Huge collapse. Huge implications. Overshadowed everything else. The Dow fell 160 points to 9711 (1.6%). Naz was off 48 to 1887 (2.5%.) Well, we went up, here we go down again. Hey, watch me, Phileas Fogg (Jules Verne character, remember? Our neighbors had a dog named Passerpartout.), I mean Andy Serwer on CNN, CNNfn, and Headline News. READ Loose Change. Here's wazzup:

ENRON/STOCKYARD (A SPECIAL EDITION): The only story that matters today is of course Enron!!!!! UNBELIEVABLE, baby! It tanked the market. ENE (ENE: down $3.50 to $0.61, Research, Estimates) is probably the biggest collapse in the history of corporate America. Last year Enron was #7 on the Fortune 500, with $100 billion in revenues, up there with the likes of IBM, GE, and Citigroup. At its peak price last year, around $90, it had a market capitalization of over $66 BILLION, which is all gone now. All up in smoke. (Well, it's still worth $400 million.) The denouement came today when S&P downgraded the company's bonds to junk. The stock sank, then trading was halted, then it collapsed from $4.10 to 66 cents!!! Dynegy (DYN: down $4.92 to $35.97, Research, Estimates) pulled out of its rescue deal. The government is monitoring it. Big banks got killed today because of exposure.

Enron, as you may know, was the biggest energy trader in the world. The whole thing reminds me of Long Term Capital. It was a company with a black box. No one really understood it. You just bought it because everyone else did. Then you got killed!!! Over 342 million shares of ENE traded today. A record for one day/one stock! "Angel in Harlem," by U2 is a great tune. (Rattle and Hum, right?)

SCOT ON THIS RECESSION: (Not!) "I don't know about this recession. I know the numbers are there, but I work in construction-- usually a bellwether of the economy--and my guys have yet to see any bad times. Things slowed a bit during the summer but have really picked up in the last 6 weeks. Also, a friend of mine sells cars at a luxury car dealer and said the best month he has had since working for this outfit for a year was last month. Luxury cars zooming off the lot, construction sites buzzing--doesn't feel like a recession if you're not in tech."

LEONARD GREEN'S GREEN: (Remember the song "John Deere green." Or how about, for that matter, "The letter that Johnny Walker Red." They call that 'the hook.') Anyway, I hear this L.A. buyout firm has had a SUPER year!!! They do a lot of pet businesses....

RAGE AGAINST THE MACHINE PART I. II. & III

MBNA: Can you imagine working there?

FIDELITY: Reduces Shel's $4000 IRA account to $1300 in 18 months. They are now charging her $12 because it dropped below $2,000. Can you imagine working there?

NETSCAPE: Hello. My name is Andy. I hate Netscape 6. Tech people told me that Netscape simply "doesn't load certain pages." I told them I know a way to fix it. Load said page with Explorer!!!

CHOCOLATE AND GOD:

"Wednesday November 28, 10:42 am Eastern Time

Hershey's VP and COO William Christ to retire

HERSHEY, Pa., Nov 28

(Reuters) - Hershey Foods Corp. (HSY: down $0.65 to $65.20, Research, Estimates), the leading North American chocolate maker, on Wednesday said that Vice President and Chief Operations Officer William F. Christ will retire effective January 1. The company did not say who was expected to succeed Christ."

BAD BANDS: From readers: "Uriah Heep.... Look up the Mentors next time you are shopping. One of the worst punk/metal bands of all time. Members resemble the two fat Guinness book of records twins on motorcycles with garbage bags on their heads. A definite must see to enjoy.... Wendy O. Williams and the Plasmatics. Jeff".... "L.A. Guns. Yep. Awful, truly awful. They tried to emulate Guns n' Roses -James".... "Worst bands? Depends on your qualification - Blue: First a band has to have been around for at least 2 years with 1 #1 record. Hootie and the Blowfish, Ace of Base, Cinderella (Along with most of the 80's glam-metal), Bee Gees, Blink182, jeez...this could be a long list. I'll stop now." Indeed!

LOOSE CHANGE

Did you see the New York Times (NYT: down $0.15 to $44.80, Research, Estimates) wants to buy the Boston Red Sox?!?? WHAT is up with that??? (I know they own the Globe....)

TOTAL DEEP BLUE SECTION: "'Skins coming alive?? Peter King predicts them to win the NFC East -- scary. Still not as good as my Pats. On that note, is the glory run of pro sports over for the immediate future? Recessions and over-expansion plus over-exposure have all contributed to very overbought market. Now hearing several NHL teams are in deep financial trouble. Plus that the LPGA has cut its schedule by six events. Four primary sponsors have pulled out of PGA Tour events. More than 10 top NASCAR Winston Cup teams haven't found sponsors for the 2002 season. Throw in contraction in Major Leagues and I'd say yes...."

"You see that guy who is suing Enron because his entire retirement stash was in ENE stock from a little over 1/2 million now down to 50k...."

"Last year I gave you my Turkey Enchilada recipe. This year my simpleton Cranberry sauce. 1 package of fresh cranberries, 1 cup water, 1 cup sugar. Mix and bring to boil over medium heat all ingredients, stirring occasionally. Once a slow-boil, simmer for another 3-4 minutes or until 1/2 cranberries have popped. Remove from heat and chill. In need of a holiday stock -- made the mandatory trip up to Deerfield, MA to the Yankee Candle Company (YCC) Place was packed and the registers were ringing up amounts like $373, $128, $204, and my mother in law's plus-$300 purchase for basically scented wax and trinkets. I'm thinking there is some type of narcotic additive in these things that keeps women buying."

"Best WW2 movies: Das Boat, Stalag 17, To Hell and Back, The Great Escape, Saving Private Ryan, Patton. Honorables: Bridge on the River Kwai, Victory at Sea series -- technically not a movie -- hell the music alone is fantastic." graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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