The lobbying by Enron had no effect on what Fortune published, highlighted on its cover with the headline, ”Is Enron Overpriced?” Then inertia. Is Enron Overpriced – Download as Word Doc .doc), PDF File .pdf), Text File .txt ) or read online. impenetrable. So why is Enron trading at such a huge multiple? Stock.” Right now, that title belongs to Enron, the Houston energy giant.= =

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Brown senior power strategist. In written reports, Morgan Stanley chalked up the decline to the poor performance of Enron’s “significant number of investments” in telecom stocks; Dain Rauscher Wessels blamed it on a lack of asset sales. In any event, some analysts seem to like the fact that Enron has some discretion overpriceed the results it reports in this area.

As for the details about how it makes money, Enron says that’s proprietary information, sort of like Coca-Cola’s secret formula.

Start with a pretty straightforward question: Views Read Edit View history. The bullish scenario for Enron is that the proceeds from those sales will reduce debt, and as earnings from new businesses kick in, the company’s return on invested capital will shoot upward. In its annual report the company wrote that “the use of financial instruments by Enron’s businesses may expose Enron to market and credit risks resulting from adverse changes in commodity and equity prices, interest rates, and foreign exchange rates.

This business involves building power plants around the world, operating them, selling off pieces of them, “invest[ing] in debt and equity securities of energy and communications-related business,” as Enron’s filings note, and other things.

This six-disc, title compendium of Herzog’s non-fiction shorts and short documentaries, most running under an hour and many never before on DVD, is available only directly via ovrrpriced director’s official Web site, www. And as Long Term Capital taught us, the best-laid hedges, even those designed by geniuses, can go disastrously overriced. At the least, these sorts of hard-to-predict earnings are usually assigned a lower multiple.

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Yes that’s what I meant. Any opinions provided within this community are for informational purposes only.

CEO Jeff Skilling calls Enron a “logistics company” that ties together supply and demand for a given commodity and figures out the most cost-effective way to transport that commodity to its destination. Nor at the moment is Enron’s profitability close to that of brokerages which, in fairness, do tend to be more leveraged. The company also blames short-sellers for talking down Enron.

It details what happened and concludes it was not an accident, that banks understood the big picture before the crisis happened but continued with bad practices. Even quantitatively minded Wall Streeters who scrutinize the company for a living think so.

Each Enron group knew what they did without knowing the whole picture. Log in or sign up in seconds.

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The good news is that the packaging is in English, English subtitles when needed are provided and the discs are encoded for international play, so no special equipment is needed to dive right in. Manage alerts What is this? Despite the fact that Enron has been talking about reducing its debt, in the first nine months of its debt went up substantially.

These two stories have still gone untold, but we knew we couldn’t finish our book with all of that ongoing, so we chose to finish our book with the overpticed the company went bankrupt. It would crush the firm’s revenues.

FORTUNE archive: Is Enron Overpriced? – Jan. 19,

Personal attacks are not tolerated. Enron then receives a “servicing fee,” but Skilling says that all the risks for example, changes in the value of the assets and liabilities are then transferred to the buyer. First, the bad news.

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And Enron isn’t leaving itself a lot of room for the normal wobbles and glitches that happen in any developing business. That’s good, because Enron will need plenty of cash to fund its new, high-cost initiatives: And Enron isn’t leaving itself a lot of room for the normal wobbles and glitches that happen in any developing business.

Details are hard to come by because Enron keeps many of the specifics confidential for what it terms “competitive reasons. So why is Enron trading at such a huge multiple?

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Even Sherron Watkins the Enron whistleblower had to work in multiple Enron departments before she put it all together. What was off the most?

Please seek appropriate professional advice for tax-related matters. But Enron says that extrapolating from its financial statements is misleading. A company with lverpriced lot of promise just ended up a total waste. Even owners of the stock aren’t uniformly sanguine. Actually, analysts don’t seem to have a clue what’s in Assets and Investments or, more to the point, what sort overprices earnings it will generate.

In Septembershe published Shaky Ground: Here is what she wrote.

Enron doc debuts just in time for trial of Lay, Skilling

Not all analysts are so aggressive. Highlights include the tale of jungle survival “Wings of Hope,” the gorgeous, philosophic ski-flying documentary “The Great Ecstasy of Woodcarver Steiner” and, of course, the infamous and self-explanatory “Werner Herzog Eats His Shoe. For instance, many Wall Streeters believe that the current volatility in gas and power markets is boosting Enron’s profits, but there is no way overpricev know for sure.