at [email protected] I believe this is the article=3D=3D=3D So why is Enron trading at such a huge multiple? Bethany McLean. Known for, “Is Enron Overpriced?” Spouse(s), Chris Wilford (m. , d) Sean M. Berkowitz(m. ). Children, 2. Bethany McLean (born December 12, ) is an American journalist who is a contributing first wrote about Enron with her article in the March 5, issue of Fortune entitled, “Is Enron Overpriced?”. Article profiles Bethany McLean, Fortune magazine financial writer who highlighted on its cover with the headline, ”Is Enron Overpriced?”.
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So they are part of the mysterious machinery that is an important component of most Americans lives, but you actually never think about it until things go wrong. Enron vehemently disagrees with any characterization of its business as black box-like.
Is Enron Overpriced?
Along with “It” status come high multiples and high expectations. That’s good, because Enron will need plenty of cash to fund its new, high-cost initiatives: For instance, many Wall Streeters believe that the current volatility in gas and power markets is boosting Enron’s profits, but there enton no way to know for sure.
Is Enron Overpriced?
Winners and losers; Price change; Produce Price Index core rate; Puerto Rican Cement as the only local stock which increased in value during the week.
Its financial statements are nearly impenetrable. Create your own alert to be notified on topics you’re interested in.
What’s clear is that Enron isn’t the company it was a decade ago. Actually, analysts don’t seem to have a clue what’s in Overpriceed and Investments or, more to the point, what sort of earnings it will generate. Indeed, people commonly refer to the company as “the Goldman Sachs of energy trading. The same is true for Enron’s competitors, but “wholesale operations” are usually a smaller part of their business, and they trade at far lower multiples.
FORTUNE archive: Is Enron Overpriced? – Jan. 19,
Focuses on analysts’ valuation of several South African companies as i June 23, Sex Education in Schools. How exactly does Enron make artixle money? Literature on the subject; Intrinsic worth of common stocks; Measurement of payoff; Ignoring dividend payout; Size of discount to be applied to future earnings. 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.
Here is what she wrote. So why is Enron trading at such a huge multiple? It’s js to know that than not know, right?
Without having access to each and every one of Enron’s contracts and its minute-by-minute activities, there isn’t any way to independently answer critical questions about the company. Not surprisingly, the critics are gushing. Details overrpiced hard to come by because Enron keeps many of the specifics confidential for what it terms “competitive reasons.
Actually, analysts don’t seem to have a clue what’s in Assets and Investments or, more to the point, what sort of earnings it will generate. To some artilce, Enron resembles a Wall Street firm.
Enron doc debuts just in time for trial of Lay, Skilling
Start with a pretty straightforward question: By almost every measure, the company turned in a virtuoso performance: Brown senior power strategist. There are other concerns: This requires big capital expenditures. So broadband had better be a good business.
Comparison to earnings at competitors such as Duke Energy; The confusing nature of Enron’s financial statements, according to the author; Ways in which Enron has changed its business structure since the early ‘s, including the addition of new businesses; Analysts’ comparison of Enron to a Wall Street artlcle firm.