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Enron Mail |
======================== THE MOTLEY FOOL ======================== B R E A K F A S T N E W S Wednesday, October 3, 2001 benjamin.rogers@enron.com ================================================================= IN THIS ISSUE --------------------- - TOP STORY: Nortel Drops Estimates, Ups Layoffs http://www.fool.com/m.asp?i=508935 - NEWS TO GO: GlaxoSmithKline, Eli Lilly, and Flextronics http://www.fool.com/m.asp?i=508936 - POST OF THE DAY: Berkshire Hathaway's Float http://www.fool.com/m.asp?i=508937 ================================================================= SPONSORED BY: Sharebuilder Buy stocks for just $3! Make dollar-based investments in the stocks and index shares you choose for just $3 per transaction. Or, pay $8 per month for unlimited stock buys. http://www.lnksrv.com/m.asp?i=508938 "Visibility remains poor but we are seeing some clarity develop." -- Outgoing Nortel CEO John Roth ----------------------------------------------------------------- TOP STORY ----------------------------------------------------------------- NORTEL DROPS ESTIMATES, UPS LAYOFFS Beleaguered telecom supplier Nortel Networks (NYSE: NT) announced more pain after market close yesterday. The company will cut another 20,000 jobs and expects a lowered $3.5 billion in Q3 revenue to produce a $3.6 billion -- or $1.13 a share -- loss. <<FULL STORY: http://www.fool.com/m.asp?i=508939 ----------------------------------------------------------------- NEWS TO GO ----------------------------------------------------------------- Private Rx help. Drug behemoth GlaxoSmithKline (NYSE: GSK) will reportedly announce today a national discount program for low-income elderly individuals without prescription drug coverage. An orange card would entitle holders to receive discounts of 25% and higher for the drugs outside of hospitals at most pharmacies. The company's move could be an effort to head off government prescription coverage for the elderly, while the price cuts could help the company's drugs better compete. GlaxoSmithKline makes such well-known products as asthma treatment Flovent, anti-depressant Paxil, and diabetes drug Avandia. Revenue depressant. Big drug maker Eli Lilly (NYSE: LLY) warned this morning that while its Q3 EPS remain on track at $0.66, Q4 EPS are likely to fall to between $0.59 and $0.61. The Street had expected Q4 numbers of $0.65. The change is due to the decline in revenues for Lilly's blockbuster antidepressant Prozac, which lost patent protection in August. To bolster its drug pipeline, Lilly recently made a strategic investment in Isis Pharmaceuticals (Nasdaq: ISIP) ( profiled in a recent issue of The Motley Fool Select). Lilly shares closed yesterday at $82.87, with a 52-week range of $70.01-$97.13. http://www.fool.com/m.asp?i=508940 http://www.lnksrv.com/m.asp?i=508941 Flexing muscles despite smaller diet. Contract manufacturer Flextronics (Nasdaq: FLEX) continues its expansion with the purchase of half of Xerox's manufacturing operations for $220 million. President Michael Marks reportedly told investors at a conference on Sept. 10 that the company's new deals would lead to a 40% revenue increase this fiscal year -- despite such roadblocks as a slowdown in its deal with Motorola (NYSE: MOT). Earlier this year, Sweden's Ericsson (Nasdaq: ERICY) chose Singapore-based Flextronics as its manufacturer, and Microsoft (Nasdaq: MSFT) also signed up with the company for the upcoming X-Box game console. http://www.fool.com/m.asp?i=508942 Caught in the Crossairs? U.S. airlines aren't alone in their suffering. Switzerland's pride and joy Swissair filed for protection from creditors and grounded its planes after a bank-led bailout failed to solve its financial woes. Some reports lay the blame at the feet of the country's number one bank UBS (NYSE: UBS), which joined Credit Suisse with a $168 million cash infusion Tuesday, but apparently too late to please Swissair's suppliers. That deal also plans to turn Swissair's 70%-owned Crossair regional unit into a smaller national airline. Belgium's Sabena, 49.5% owned by Swissair, has filed for bankruptcy after Swissair failed to come through with new cash. http://www.fool.com/m.asp?i=508943 ----------------------------------------------------------------- POST OF THE DAY ----------------------------------------------------------------- BERKSHIRE HATHAWAY'S FLOAT "In short, float is cheap capital. That is, it's the ability to use money at a cost less than you'd normally have to pay (e.g. interest on a loan), and less than the return you can earn on that money. Of course, it's possible to generate "float" that actually costs you more than other sources of capital, but a better description of that circumstance would be "high interest loan," since the word float really connotes some benefit to the recipient." <<FULL POST: http://www.fool.com/m.asp?i=508944 ================================================================= SPONSORED BY: Sharebuilder Buy stocks for just $3! Make dollar-based investments in the stocks and index shares you choose for just $3 per transaction. Or, pay $8 per month for unlimited stock buys. http://www.lnksrv.com/m.asp?i=508945 ================================================================= My Portfolio: http://www.fool.com/m.asp?i=508946 My Discussion Boards: http://www.fool.com/m.asp?i=508947 WANNA TAKE THE SHORTCUT? Check out our new Crash Courses, the fastest way to get your finances in order. Get results in less than an hour, for just $10. Try one today! http://www.fool.com/m.asp?i=508948 PERKS FOR FOOLS ONLY Get free stuff and special offers, just for you! http://www.fool.com/m.asp?i=508949 CUSTOMER SERVICE Ask our staff for help with email delivery problems. http://www.fool.com/m.asp?i=508950 UNSUBSCRIBE Here's how to unsubscribe or change your settings. http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers@enron.com _________________________________________________________________ Copyright © 1995-2001 The Motley Fool. All rights reserved. Legal Information: http://www.fool.com/m.asp?i=508951 MsgId: msg-11609-2001-10-03_9-07-12-3283212_2_Plain_MessageAddress.msg-09:08:09(10-03-2001) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
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