Henry, an Excellent note. It can often be difficult for investors to judge management's competency, and it's
desire for rigorous internal controls. In ENE's case, even the credit agencies and lenders were caught
somewhat flat-footed. But that's what makes it such a compelling story.
I was telling a couple of friends who work for a firm that places very high level execs primarily in accounting and
financial services. This company performs searches a couple of the Big 5 firms. I was mentioning to this firm,
that the accounting industry experts in "mark to Market" accounting; especially those who have studied the energy trading firms, are going to be in greater demand due to the collapse of ENE.
As we can see, DYN, CPN and EPG have all been getting their stock prices knocked down, due to the
concerns about these accounting issues. The companies in this sector, as well as their auditors have the
ability to expand their market share and create better credibility with the Wall Street community, if they
can bring in people like Tim Lucas and assuage the fears regarding these slippery accounting issues.
(Tim Lucas is the head of FASB's emerging market's group, that issued the FASB accounting opinion, on
Mark to Market accounting for the energy traders.)
So this situation will inevitably occur in new and developing markets
..........on a separate note, What are your thoughts about the new single stock futures that are coming in 2002?
Do you think they will be broadly accepted by the investment community?
John |
