Greetings James. I own ENE in my brokerage account as well as through their DRIP. Well, you got your wish, ENE dropped down to its support level of 47-48. We'll probably hold here until the next Qs earnings are announced, or some other big electricity deals. I am long ENE, and plan on DRIPing til I'm 50, which is 27 years away.
Interesting news today regarding ENE's alliance with Enel, the state owned electric utility in Italy. Lots of pipeline action as well.
Enron Says Venture with Italy's Enel to Extend Beyond Initial Power Plans. I take this as a good sign, as it lets ENE get an even better foothold on the European market, after all, Enel is one of the largest electricity producers in the world.
Link to the Bloomberg article:
news.com
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Bloomberg Article:
Bloomberg News
August 25, 1998, 2:18 a.m. PT
Enron's Enel Venture to Go 'Further' Than Originally Planned
London, Aug. 25 (Bloomberg) -- Enron Corp.'s joint venture
with Italy's dominant state-owned electricity company will go
beyond original plans, according to a senior executive at the
U.S. power company.
Initial plans call for Enron to share ownership of 10 Enel
power stations with some 5,000 megawatts of capacity in exchange
for upgrading and expanding the plants, according to the original
joint venture proposal announced on June 3, 1997.
In keeping with a European directive to open up the
electricity market, Enel, which produces about 80 percent of
Italy's power, must reduce its dominance.
''It goes further than what we originally proposed in terms
of scope and in commitment of both parties,'' said Mark Frevert,
chief executive of the company's U.K.-based European unit, Enron
Europe, in an interview.
He said the two companies have reached agreement on a
''more detailed memorandum of understanding'' that discusses the
structure of the joint venture and addresses corporate
governance issues. He declined to give more details ahead of a
likely official announcement next month.
This agreement means the two companies should be in a
position to sign a definitive agreement within six months,
Frevert said.
Progress with Enron comes less than six weeks after Entergy
Corp., the U.S.'s third largest power generator, pulled out of
talks to create another joint venture of a similar magnitude with
Enel.
Enel is obliged to sell a third of its 55,100 megawatt
generating capacity by 2003.
While Frevert said Entergy's departure has little bearing
on his company's joint venture, the withdrawal strengthens
Enron's hand. It puts pressure on the Italian company to achieve
progress in its remaining joint ventures to meet the regulatory
requirements.
Enel officials were not immediately available for comment.
--Edward Orlebar in the London newsroom (171) 330-7845/rcs
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