Kit Menkin’s Leasing News   Monday, January 21, 2002


Headlines----Two Leasing Conferences on February 10-12th---East Coast and West Coast                           Textron Financial Names Jay Carter President and COO
                             Economists worry debt may choke off economic growth
                                 In Tough Year, Dell Shines
                                    How to Protect Yourself by Alfredo R. Vionnet
                                       Monday---Odds and Ends

### denotes press release




     Thursday, Live at 1pm, California Time


National Association of Equipment Lease Brokers is the only organization

that lost members in the year 2001.  All the rest had a membership



Find out Why?

    Find out if this is the organization for you?

         Learn what NAELB has to offer?


               Next Thursday---LIVE at 1pm, California Time


 Michael Meacher, President, National Association of Equipment Leasing Brokers


                      "Meet the Leasing News Maker"

                  Thursday, Next Week, 1pm, California time

             ( don't be late, tune in ten minutes earlier to get your seat )



Monday---Odds and Ends


Terminal Marketing Request


I would like to hear from all Brokers, End Users, Vendors and former

employees that feel they have been damaged by Terminal Marketing or their

assignees.  This case seems to be getting bigger and bigger by the day.

Please contact me via email or phone.


Thank you,


Kevin Pane

C2 Capital Corp.

888-348-6200, ext. 233




Missing Certified Leasing Professionals-------------------


If you can publish this list, we are still trying to track down the

following CLP's: Ronnie Bissland, Ann Clark, Cathy Clark, Kevin Conroy,

Tim Hill, Joyce King, Ralph Lewerenz, Tom Long, Duncan McIntyre, Jeff

Minott, Jennifer Mintz, Pat O'Rourke, Pat Ontal, Kris Rector, Patty

Russell, Ron Schultz, Chris Siri, Bill Wehner, Bob Clabots, Ron Hill,

Jennifer Kardos and Dale Volkamer. If anyone has an address or phone

number please advise Cindy at the CLP Foundation at or

at 610-687-0213 or fax 610-687-4111. Thanks - Steve


Steven B. Geller, CLP

Leasing Solutions LLC

20 Dike Drive

Wesley Hills, New York 10952


fax 845-354-2803

cell 914-552-0842




Leasing Association Membership


many thanks for your newsletter.  You really provide a GREAT !! service.


Observation .... membership data in UAEL, NAELB, EAEL is not conclusive at

this time since

membership at 12/31/01 may NOT be members in 2002.  Many firms renew in the

1st quarter, not by

12/31.   A good follow up would be to compare membership at say 3/1/02 with

that at 3/1/01


P.S.  I have a rather extensive lease magazine/newsletter library.  How far


you want to go back?



D. Paul Nibarger, CLP

Nibarger Associates

7310 Via Marie Celeste

Rancho Palos Verdes, CA  90275


310.377.1574  (FAX)


( Thank you.  I have the first minutes from the Western Association

of Equipment Leasing meeting, courtesy of Russ Rickards, formerly

of Cenval/Bank of the West.  I go back as far as 1981 with UAEL

and have some odds and ends from others. Anything will help me

build up a library. 


If there are issues we have duplicates and you would like us to return them,

we will. We will pay for UPS charges, too.


( Membership, your observations should be noted and definitely

taken into consideration. The actual figures may be the June numbers.

In good years, it is not uncommon to have a 80% retention rate.  With all

the companies that have gone out of business, it might be 70% to 75%. But

on the other hand, there are many more independents now, new lessors,

new companies being formed, so an association with an aggressive membership

committee can make up for the losses.  The real question is what is the

"mix" compared to the previous year.  The larger funders paid higher

dues than the younger or smaller companies.


I personally see associations and networking more important than every

before, especially for emerging and growing companies.  I think all

the associations should have followed MAEL, who raised their dues.


I personally see the association dues as "bargains" and thus the reason

why so many belong to more than one association.  More about

this later this week. editor




Press Release Comments


I loved your comment on the press releases.  Who writes these things?

If the energy it took to write and distribute press releases went into

finding actual deals I believe a lot more business would get done in

this industry.


Since press releases seem to generate so much hype I have decided to put

one together that summarizes our activities over the past 10 years.  It

will explain that we have had virtual application delivery for 11 years

now, we deployed a web interface to the Fair Isaac credit scoring system

back in 1996, we have a proprietary software package that is used by

more than 100 vendors and we now have our software installed in 26

community banks, we have been using "Risk Based Pricing" for nearly 3

years now, and Oh, yeah, I forgot... We had a paperless office a couple

of years ago but I decided that there were some things that were

actually better accomplished using paper so I went out and equipped all

of my people with Cross Pens and an 8.5" x 14" yellow, ruled tablet.

Since making that decision our productivity has skyrocketed.


Bob Rodi,ClP


LeaseNOW, Inc.

1-800-321-LEAS (5327)x 101





Two Leasing Conferences on February 10-12th---East Coast and West Coast



Annual Equipment Management Conference and Exhibition, sponsored by the

Equipment Leasing

Association February 10 - 12, at the Marriott Desert Springs Resort in Palm

Desert, CA.  Over 40

service-providers--appraisers, remarketers, software houses, and more--have

already signed up to

show their stuff.  To get details, your readers can go to



Ralph Petta







Join Eastern Association of Equipment Lessor and National  Association

of Equipment Leasing Brokers   Febraury 11th, Atlanta, Ga.

There is a "get together" the night before.  To learn more about

this go to:





####   #############################  ###############


 Textron Financial Names Jay Carter President and COO


Textron Financial, a subsidiary of Textron, has named Buell J. Carter Jr.

president, in addition to

his current responsibilities as COO. Carter joined Textron Financial in 1990

and has held several

senior management positions at the company including vice president and

division manager of the

former asset based lending division and senior vice president of operations.

In 1999, Carter was

promoted to executive vice president and COO, giving him operational

oversight for all of Textron

Financial's lending divisions.


"Building on his 27 years of experience in commercial lending, nearly half

of which have been with

Textron Financial, Carter has tirelessly managed the operations of our

company during the most

challenging period in our history," remarked Stephen A. Giliotti, Textron

Financial chairman and

CEO. "I am confident that he will continue to be a significant contributor

to Textron Financial's

future success," Giliotti continued.


Prior to joining Textron Financial, Carter held management positions at ITT

Capital Finance, Chase

Manhattan Bank and Westinghouse Credit. He earned a Bachelor of Science

degree with honors in

physics from the University of Louisville, Louisville, KY.


Additional information about Textron Financial is available at


 Additional information about Textron Inc. is available on


####  ##################################################



        How to Protect Yourself   by  Alfredo R. Vionnet









Place the contents of your wallet on a photocopy machine and copy both sides

of each license, credit card, etc. You will know what you had in your wallet

and all of the account numbers and phone numbers to call and cancel in case

it gets lost or worse yet, stolen. Keep the photocopy in a safe place.


A corporate attorney sent this out to the employees in his company:

We've all heard horror stories about fraud that's committed us in your name,

address, SS#, credit, etc.


Unfortunately (the author of this piece who happens to be an attorney) has

firsthand knowledge, because his wallet was stolen last month and within a

week the thieve(s) ordered an expensive monthly cell phone package, applied

for a VISA credit card, had a credit line approved to buy a Gateway

computer, received a PIN number from DMV to change his driving record

information online, and more.


But here's some critical information to limit the damage in case this

happens to you or someone you know. As everyone always advises, cancel your

credit cards immediately, but the key is having the toll free numbers and

your card numbers handy so you know where to call. Keep those where you can

find them easily. File a police report immediately in the jurisdiction where

it was stolen, this proves to credit providers you were diligent, and is a

first step toward an investigation (if there ever is one).


But here's what is perhaps most important: (I never ever thought to do this)

Call the three national credit reporting organizations immediately to place

a fraud alert on your name and SS#. I had never heard of doing that until

advised by this attorney and a bank that called to tell him an application

for credit was made over the Internet in his name. The alert means any

company that checks your credit knows your information was stolen and they

have to contact you by phone to authorize new credit. By the time he was

advised to do this almost 2 weeks after the theft, all the damage had been



There are records of all the credit checks initiated by the thieves'

purchases, none of which he knew about before placing the alert. Since then,

no additional damage has been done, and the thieves threw his wallet away

this weekend (someone turned it in). It seems to have stopped them in their



Besides the numbers for the creditors, which you should know, the numbers


Equifax: 1-800-525-6285

Experian (formerly TRW): 1-888-397-3742

Trans Union: 1-800-680-7289

Social Security Administration (fraud line): 1-800-269-0271


I hope you find this useful.


Alfredo R. Vionnet

Vionnet & Associates, Inc.

Fresno, CA

Phone: (559) 229-4782





Economists worry debt may choke off economic growth





Knight Ridder


Debt is everywhere in the United States, from the home-equity loans

consumers use to pay for

vacations, to outstanding credit-card balances that average thousands of

dollars per consumer. Some

say so much debt has accumulated that it is clogging the nation's financial

arteries. Whether the

U.S. debt level warrants a strict fiscal diet is a matter of debate.


Some economists warn that rising debt levels will choke off economic growth.

Among their concerns:

Bankruptcies are climbing toward an all-time high for 2001, and credit-card

balances per household

average more than $8,000. Delinquencies and write-offs of bank loans are

higher than they have been

in years, and consumer credit has swelled to $1.6 trillion.


 Many economists say we've reached the danger point.


Among the indicators:


 The percentage of disposable personal income that goes to cover interest on

debt topped 14 percent

in 2001, its highest level in more than 10 years.

 The rate of delinquent payments on credit card debt hit 5 percent in the

third quarter. That was

its highest level in more than 15 years and twice the rate of the mid-1980s.


 Bankruptcies filings are climbing again after declining for a few years.

The total number of new

bankruptcy filings in the third quarter was 359,518, a rise of 14 percent

over the same period in



 The delinquency rate for mortgage loans on residential properties is

rising, hitting 4.87 percent

in the third quarter, up from 4.63 in the second quarter.


The problem with all this debt is that it burdens the nation just as we need

to be building and

spending our way out of the recession. With a rising chunk of income going

just to pay the interest

on debt, we have less cash available to put to better use.


Put another way, the nation needs to work off the excess debt before it can

return to the table for

another helping.

Debt perhaps will hold down the nation's economic growth rate to 3 or 4

percent annual growth in

2003 instead of a more robust 4 or 5 percent rate.




In Tough Year, Dell Shines


             Thor Olavsrud


PC manufacturing was a tough market in 2001 for most U.S. firms, but some

have weathered the storm

better than others and none have done quite so well as Dell Computer Corp.



The Austin, Texas-based company Friday trumpeted that its fiscal

fourth-quarter operating results

were stronger than anticipated, and that overall revenue and earnings for

the period will exceed

guidance. The company said it now expects quarterly sales of about $8

billion, up

from a projected $7.6 billion. It also said it anticipates earnings of 17

cents per share, as

opposed to previous guidance of 16 cents per share.


Dell said its consumer business, which led the charge in the fourth quarter,

is expected to produce

a sequential increase in product shipments of about 50 percent while

increasing revenue growth from

the third quarter by about 40 percent.


A little history


In the third quarter of 2000, IDC said Dell led the pack in units shipped in

the U.S., with 19.7

percent market share. It held second place -- behind Compaq (NYSE:CPQ) - in

worldwide PC shipments

with 11.6 percent market share. In the fourth quarter of 2000, as the market

began to tighten, Dell

powered through and grabbed 22.2 percent market share in U.S. shipments. As

for worldwide

shipments, Compaq declined in that quarter, falling from 14 percent share to

12.9 percent share,

but still held onto the number one slot. Dell managed to increase its

worldwide market share to

11.7 percent in the fourth quarter of 2000.


A year has passed since then, and Dell has continued to accelerate. At the

end of fourth quarter

2001, IDC said Dell's U.S. market


share had increased to 27.5 percent, while Compaq, Dell's closest rival in

the U.S. market,

declined from fourth quarter 2000 market


share of 15.1 percent to 12.7 percent market share. In the worldwide market,

Dell overtook Compaq.

IDC said Dell captured 14.2 percent of the worldwide market in the fourth

quarter of 2001, while

Compaq, now second place, slipped to 11.2 percent.


In fact, IDC said Dell was the only one of the top five vendors to grow

shipments in the U.S. and

worldwide year on year.


The competition


Compaq's worldwide shipments rose 16.3 percent sequentially, while fourth

quarter year-on-year

shipments fell by 19.1 percent. In the U.S. its sequential growth only

reached 2.5 percent while

its year-on-year shipments fell by 24.7 percent. However, IDC said it did

manage to reduce

inventory internally and in channel, and made strides in shifting to a

direct distribution model.


( Leasing News reported this last week:


Compaq reports $92 million profit, exceeding expectations


By Mark Babineck, Associated Press


HOUSTON (AP)   Compaq Computer Corp. easily topped Wall Street's

fourth-quarter 2001 earnings

expectations, announcing Wednesday that it earned $92 million for the


The Houston-based computer maker, which informed investors last week it

likely would make money,

turned a profit of 5 cents per share, beating the 1-cent consensus of

analysts surveyed by Thomson

Financial/First Call.


The earnings figure includes a charge of $36 million, or 1 cent per share,

related to Compaq's

pending merger with Palo Alto, Calif.-based Hewlett-Packard Co.

Compaq's earnings were down 82 percent from the $515 million, or30 cents a

share, it made in the

final quarter of 2000, not including a $1.8 million write down because of

devaluation of its large

stake in CMGI Inc.


Chairman and chief executive Michael Capellas also predicted Compaq would

bring in about $7.6

billion in revenue and earn a penny a share in the current quarter. Analysts

anticipated a

break-even period. )


Hewlett-Packard Co. (NYSE:HWP), meanwhile, showed sequential growth of 35.5

percent, helping it to

recover from a difficult third quarter and remain number three in market

share both in the U.S. and

worldwide. Still, shipments were down 7.8 percent year on year.


Gateway Inc. (NYSE:GTW) shipments continued to decline in the fourth quarter

and the company pulled

out of many international markets, IDC said. Competition from Dell and HP

took its toll on

shipments in the United States as well. The company, while still  fourth in

market share in the

U.S., slipped from 8.8 percent share in Q4 2000, to 6.3 percent share in Q4



Finally, IBM Corp.'s (NYSE:IBM) shipments fell 22.1 percent year-on-year,

though IDC said it

achieved 5 percent growth sequentially. IBM has de-emphasized its client

hardware business in favor

of a more solutions oriented stance. During the year, it folded its PC

marketing and sales

operations into the larger company and has since withdrawn from desktop

manufacturing. The company

now plans on selling PCs primarily as part of an overall solution, IDC said.

IBM was fifth in

market share in the U.S. in the fourth quarter, with 5.2 percent share. It

took the number four

slot in worldwide shipments, with 6.2 percent share.


A snapshot of the market


Meanwhile, the worldwide PC market shows some positive signs but remains

under pressure, IDC said



"Hard times persist in the PC market, but vendors are working diligently to

stimulate growth and

the outlook has started to improve in the United States and Europe," said

Loren Loverde, director

of IDC's Worldwide Quarterly PC Tracker. "We don't expect a rapid

turnaround, but the seeds of

recovery are being sown. Depending on the economic environment, growth in

the PC market may pick up

more rapidly toward the end of the year."


The firm noted that while the PC market remained depressed in the fourth

quarter, holiday buying

produced better-than-expected results and shipments grew sequentially over

the third quarter, even

while they declined year on year. IDC said worldwide shipments declined by

6.7 percent year on year

in the fourth quarter but grew sequentially by 16.9 percent to 34.2 million.

IDC said the more important indicator of the market's performance is the

sequential growth, which

it said lags only slightly behind the average fourth-quarter sequential

growth rate of 19.8 percent

(from 1995 through 2000).


The strongest market over the year was Asia Pacific -- excluding Japan --

which IDC said was the

only region to sustain shipment growth from a year ago. The firm said PC

sales continued to rise in

the largest markets, but potential was limited in smaller countries due to

political and economic

uncertainty. The Japanese market remains weak, and IDC projected

double-digit declines inthe next

few quarters there.


As was the case last year, the European market remained soft -- especially

in the corporate

segment. IDC said small business and consumer segments were the most active

in Europe and continue

to shift toward portable systems.


Finally, shipments in the U.S. fell 10.1 percent year on year, but beat

expectations. IDC said

sequential growth was 6.1 percent, which it attributed in large part to

increased home buying.

"U.S. consumers finally pulled out some of the stops in the fourth quarter,"

said Roger Kay,

director of Client Computing at IDC. "After four quarters of subdued buying,

consumers in the

United States ended the year with a burst of activity, particularly in


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