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Strategies & Market Trends : Paint The Table -- Ignore unavailable to you. Want to Upgrade?

To: Oral Roberts who wrote (3755)	11/29/2001 3:39:03 PM
From: Rich1	Read Replies (1) \| Respond to of 23786

They are real genuises...<ggg>

To: Oral Roberts who wrote (3755)	11/29/2001 3:56:01 PM
From: Alan Smithee	Respond to of 23786

The celestial valuation may seem to have been justified by the booming revenue. But profits were growing at a much more ordinary rate. Enron's net income grew mightily after a down year in 1997, but then it inched up from $1.01 per share in 1998 to $1.12 per share in 2000. This profit growth is using the old numbers--before Enron was forced to restate its profit and loss statement earlier this month. Meanwhile, the share price (adjusted) climbed from $19 at the beginning of 1997 to $82 at the end of 2000. If Enron's profits were less spectacular and largely based on an increasing volume of paper transactions, not actual delivery of oil or gas, its story was quite good. Enron would do for telecommunications what it had done already for energy; it would get into "broadband" and the Internet; it would team with Blockbuster and deliver movies on demand. While its achievements were real, the fantasy is what sold. Major Wall Street analysts listened intently to the story and few questioned it. As of last month, 13 analysts covered the company. Eleven recommended it as a "buy" or "strong buy." Just one said "sell" and the other said "hold." This was just one week before the roof fell in, and Enron announced it would sell itself to Dynegy, its crosstown rival. siliconinvestor.com