Hi Ohkami; Re: "Pretty soon ENE will be responsible for everything from collar stain to the hole in the ozone layer." You got that right. Already the press is tarring anyone who is within 5 degrees of being connected to the company. And since they were the seventh largest company (or whatever) that means everybody is connected to them.
I remember when Enron said they were going to start selling DRAM, but I didn't think that they ever did it. Periodically, I visited their website to see if they had started. I got the impression from the trade press that their demise wasn't an issue.
Oil giant prospects for DRAM profits
Bolaji Ojo, EBN, June 15, 2001
ebnonline.com
My objective was to get another pricing series, but I never saw them ever have anything to that effect on their website. This article says that they never did much:
Enron scraps DRAM risk-management program
Bolaji Ojo, EBN, November 21, 2001
In the end, it wasn't concerns about its viability that doomed Enron Corp.'s fledgling program to offer sophisticated hedging tools to help manage price and procurement risks in the DRAM market. It was the sudden erosion of the company's own financial muscle upon which the DRAM business so heavily relied.
...
Because the Enron DRAM risk-management project was still at its infancy, with the company only taking orders of between 25,000 and 50,000 DRAM chips, the decision to end the program hardly made a dent in the memory market.
...
Under the service, Enron offered OEMs and suppliers a chance to secure or sell an agreed-upon volume of 128Mbit DRAM at a definite price. If DRAM prices rose above the strike price for OEMs or below the contractual price for suppliers, Enron was expected to reimburse them.
EBN had an agreement with Enron to publish the company's DRAM forward-pricing data on its Web site.
...
ebnonline.com
-- Carl |
