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Enron Mail |
Hi Morgan,
Now that I do not work for Ken Lay and, as a stockholder, he actually works for me, I can go directly too him and tell him what I really think. I can also tell all of the board members what I think as well, without fear of getting fired by one of my former politically motivated bosses. Ken Lay earned a PHD as an economist. He knows exactly what I am talking about. What he is doing is trying correct many bad Enron decisions and to find "easy" income in a tough time. He is very good at "working the floor", as I call it, of the New York Stock Exchange. He has probably made deals with brokers and large mutual fund managers such as Vanguard and Fidelity for them to repurchase large amounts of Enron stock IF he can clean up Enron and bring in some revenue. So far, so good. The problem arises when you look at the quality of the revenue Ken is generating. What I see is largely from "one time" sales of existing assets and not from continuing operations. In other words, the effect is only temporary and it is much harder to re-create at a later time because the "asset" is gone. Personally, I am not buying into the "trust me" line from Enron. It is time for Enron's leadership to earn their millions in salary. Love, Dad -----Original Message----- From: Shaw, Morgan [mailto:MShaw@CHIEFS.NFL.com] Sent: Wednesday, October 10, 2001 5:16 PM To: Shaw, Neal Subject: RE: I did get it Dad...I think you really made some great points. Do you think Ken really "gets" what you are trying to say?? Good things for the Right Reasons...where have I heard that before??? Love you, Morgan -----Original Message----- From: Shaw, Neal [mailto:nshaw@usenergyservices.com] Sent: Wednesday, October 10, 2001 4:33 PM To: mshaw@chiefs.nfl.com; jbshaw@csuniv.edu Subject: FW: Morgan & Jenny; Did not know if you received the lastest on the Ken Lay Letter. Ken is the President, CEO and Chairman of all of Enron. Love, Dad -----Original Message----- From: Shaw, Neal Sent: Tuesday, October 09, 2001 10:41 AM To: 'Kenneth.Lay@enron.com' Cc: 'mshaw@chiefs.nfl.com'; 'jbshaw@csuniv.edu' Subject: RE: Importance: High Ken, Thank you for your response to my email. Whether you actually took the time to respond or left it to one of your assistants, I hope you read my comments/suggestions and truly understood them. I have a few more comments and suggestions! You are correct, overall stock values have declined and Enron has some additional, unique issues related to its broadband and tele-com business, payments from California and large investments in foreign power plants, particularly India. However, I cannot agree with your comments (or Jeff's) about short sellers. Short sellers, like jackals and vultures, exist for a reason and are an important part of the whole financial community in which we live. Short sellers (and Jackals) are always looking for a deal(meal). When they find an unhealthy company (animal), they investigate, which oftens leads to greater opportunities. Enron, under Jeff's leadership, was not healthy and the short sellers (jackals) found a wonderful opportunity. Your current job, as was Jeff Skilling's, is to not provide the short sellers (jackals) a reason or opportunity to focus on Enron's stock price. I applaud your recent commitment to the financial community to provde better definition regarding Enron's profits. Developing the necessary internal mechanism for a largely transparent financial reporting system will police itself and will ultimately reinforce confidence in Enron's true value. As an economist, you need to remember that the market value of any company, in today's economy, is largely based on the market's perception of its value. As you and I have so recently seen, the market very often reacts on preception and only looks at intrinsic value as an afterthought. The financial community believes that if it quacks like a duck and walks like a duck, then....just maybe it is a duck and not really a racehorse Enron executives need to be more cognizant of the negative impact their excessive insider selling of shares has on market preception. Using stock options in lieu of salary is a very powerful incentive but it can also backfire, especially if the proper safe guards are not in place. Excessive insider trades can and should be limited. Doing good things for the right reasons works! For some years now, Northern's leadership has not done many good things for the right reasons. They are highly political and have developed a nasty habit of not telling their upper management (Stan Horton) the truth, but what Stan wants to hear. They are doing many things, not because they should, but becaue they can get away with them. This activity works only as long as their customers do not have a choice! You want examples-look at the non-Enron pipeline activity in Florida and the upper midwest. A solid domestic asset with a reasonable return is much better than the possibility of much higher returns on assets in unstable, foreign markets. Enron is not smarter than the world and the world has certainly demonstrated that it will not allow Enron to possess very much control over world affairs. Let's learn from our mistakes! Selling difficult assets, such as in India, is good. Selling profitable assets, such as Portland General is bad just to make the bollom line revenue. Warren Buffet, an Omaha native, does not look like such an old fuddy-duddy as he once did, as recently as last year. Strong, solid fandamentals do count and ...... Short sellers will always be around and DOING GOOD THINGS FOR THE RIGHT REASONS truly works!!! Sincerely, Neal Shaw -----Original Message----- From: Kenneth.Lay@enron.com [mailto:Kenneth.Lay@enron.com] Sent: Monday, October 08, 2001 12:08 PM To: Shaw, Neal Subject: RE: Any responses to this e-mail should be sent to kenneth.lay@enron.com Neal: I appreciate your recent e-mail concerning the decline in Enron's stock price. I share with you a very deep disappointment and frustration about this decline. The decline has occurred for a number of reasons. First, overall stock values have declined significantly this year. Enron's stock price has declined more than averages primarily because of the total melt down in the broadband and tele-com business, difficulties with getting paid by the California utilities and trouble with our large power plant and LNG project in India. These problems have been further compounded by endless misinformation and rumors, probably promulgated by short sellers. In any event, I believe we our making progress in addressing these various problems. I believe our stock price will increase over the short to intermediate term. With good success, we will be able to restore most or all of the value we lost this year over the not too distant future. I appreciate your concerns and your suggestions and I will certainly do everything I can to restore your confidence in Enron. Sincerely, Ken -----Original Message----- From: "Shaw, Neal" <nshaw@usenergyservices.com<@ENRON [mailto:IMCEANOTES-+22Shaw+2C+20Neal+22+20+3Cnshaw+40usenergyservices+2E com+3E+40ENRON@ENRON.com] Sent: Monday, September 24, 2001 1:47 PM To: Ken.lay@enron.com Subject: Ken, My name is Neal Shaw and I worked for Northern Natural Gas Company in Midland, Minneapolis and Omaha in the Marketing Department of Enron's Gas Pipeline Group for almost 19 years. I left the company is December 2000. I have a major portion of my investment portfolio in Enron shares. I just read an interesting article titled Sizing up CEO aplomb under duress a major concern. by Jamie Lareau. This article focused on how to recognize CEO's and CEO candidates who were not up to the requirements of their job and used Jeff Skilling as an example. I have agreed with views of this journalist for some time, especially since Jeff called a fund manager an "asshole". Publically calling someone is simply Not something any CEO should do and you and Enron's board should have done something about Jeff then. My point is as follows: Where were you and the Enron Board during all this? Why have you let people like Jeff Skilling and Stan Horton virtually destroy all growth prospects for the pipelines and totally concentrate on trying to make money without an asset base? A lot of people believed Jeff's hype and many people have suffered! Has Jeff suffered?. I think not especially since he has left Enron with millions of our dollars in his pocket. Hopefully he will be able to afford the time off to "find himself". Did you see the movie "Top Gun"? Toward the end of the movie, Tom Cruise, otherwise know as Maverick, blamed himself for the loss of his friend and simply disengaged from combat flying. However, when things got really rough, Maverick re-engaged the enemy and did what he was hired to do. Do you know where this is going? You are once again Enron's "Top Gun"! The enemy is Enron's depressed stock price. It is time for you to re-engage and live up to your title of "Top Gun" and CEO! I and the rest of Enron's stock holders need you to repair the damage Jeff did and STOP the damage people like Stan Horton are currently doing and get Enron back in the mix. I sincerely hope you are still capable of doing a good job. If you are not, refund your salary since Jeff took over and step down. Sincerely, Neal Shaw U.S. Energy Services, Inc. Phone: (402) 861-9520 Cell: (402) 578-8897 Fax: (402) 861-0461 ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. **********************************************************************
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