Shirley,

I think it's a growing problem of junk mail
that is being sent indiscriminately to everybody.

Sometimes it comes from legitimate institutions,
sometimes it represents scams. I got a message today
about diamonds in Sierra Leone.

Vince





Shirley Crenshaw
01/02/2001 08:16 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:  
Subject: Market

Vince:

Do you know who this is?  I have been getting this, but don't know why or
who he is.

Does it sound reputable?


---------------------- Forwarded by Shirley Crenshaw/HOU/ECT on 01/02/2001 
08:09 AM ---------------------------


"Newton, Jeremy C (SUGARCREEK XGH 317)" <JCNewton@pclient.ml.com> on 
12/29/2000 01:40:02 PM
To: "'shirley.crenshaw@enron.com'" <shirley.crenshaw@enron.com>
cc:  
Subject: Market


12/28/00
The markets finally took a breather, as the light volume seemed to indicate
the tax loss season was mostly over, and investors were enjoying their
holidays and trying to forget a bad year for the markets. The week was
pretty god, with perhaps some last minute tax selling on Friday. It will be
interesting to see how next week fares.

I think tech will continue to suffer through the first half of the year. The
earnings are not likely to improve until sometime in the second half. At
that point, year to year comparisons will be more favorable. There will be
some successes, as so many have been beaten down too far. Energy looks
strong right now, but I would be cautious as we get past the winter and the
gas price comes down to a more reasonable level.

Merrill Lynch now predicts fed cuts of 100 basis points by the end of the
summer. These cuts will create a strong emotional push to the market, even
in the face of lower earnings. Merrill Lynch is also predicting a GDP growth
of 2.9%, down from the previous forecast of 3.3%. This certainly would
qualify as a "rough" if not "hard" landing. They expect the GDP growth in
the second half of 2001 to rise at a 3.5%-4% rate. They predict the
strongest earnings to come from Health and Energy at about 14%, with Tech
and Utilities at 10%.

Some of the market weakness and economy concern could stem from the
statements being made by the new Bush administration. They want to be sure
the public is aware of the slowing economy, so the issue will be seen as one
they inherited, not created. They don't want to be seen as the ones who
messed up the great boom. They also want justification for the tax cut plan
they had proposed, and a weaker economy is certainly a good reason to
stimulate the economy with cuts.

There are a number of tax law changes for 2001. The new capital gains rates
for investments held over five years begins- the new rates are 8% and 18%
versus 10% & 20%. The deductible interest on student loans rises from $2000
to $2500. The rate for auto business miles is rising from 32.5 cents/mile to
34.5. The expense deduction for business equipment in the first year rises
from $20k to $24k. The exemption on unearned in come for children has been
raised to $750, from $700. The second $750 in income is taxed at the child's
rate, up from $700. So now there is $1500 of preferential taxation for kids
under 14, up from $1400. For kids 14 and older, they now have $750 tax-free.
On the negative side, social security taxes will be assessed on the first
$80,400 of income, up from $76,200 this year.

Upcoming Splits
January 17 Idec Pharm IDPH 3 for 1

FOMC Schedule
January 20-21
March 20
May 15
Upcoming Seminars
January 10 in Rm. 5C2

Thanks & Regards
Mike Lee       Jeremy
Newton
Merrill Lynch        Merrill
Lynch
281-243-9337       281243-9328
Mike_Lee@ml.com      Jeremy_Newton@ml.com

Past Performance is no guarantee of future results
shirley.crenshaw@enron.com
 Investment Risk Rating: A = Low, B = Average, C =Above Average, D
=High
Investment Opinion: First Number = Intermediate Term (0-12 months)
Appreciation Potential
Second Number = Long Term (More than a year) Appreciation Potential
(Recommendations are: 1=Buy; 2=Accumulate; 3=Neutral; 4=Reduce; 5=Sell; 6=No
Rating)
Third Number = Income Rating -Expected dividend in relation to current
payment.
(Ratings are: 7=Same/Higher; 8=Same/Lower; 9=No Cash Dividend Paid)
Consensus Recommendation 1=Buy, 3=Hold, 5=Sell (1.5 or less coded GREEN,2 or
more RED)
Additional Color Coding PE over 50 is coded RED
PEG of 1.4 or less is coded GREEN. PEG of 2.5 or greater is coded RED.
If the stock is under it's 50 day avg, it is coded Green. If it is more than
20% over, it is coded RED.
Earnings upgrade are coded GREEN, Earnings downgrades are RED.
If all columns GREEN or BLACK, Company Name will be GREEN.
Past Performance is no guarantee of future results
____________________________________________________________




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