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Gold/Mining/Energy : Enron - Natural Gas Industry -- Ignore unavailable to you. Want to Upgrade?

To: SargeK who wrote (1320)	1/24/2002 6:55:12 PM
From: Douglas V. Fant	Read Replies (5) \| Respond to of 1433

SargeK, A friendly "howdy" and good analysis of ENRNQ. I would only disagree with calling Enron a "financial armageddon". Enron lost US $70b in equity. CSCO by comparison lost US $299b in equity over 2000-2001 decline. Strange CSCO lost almost four times the equity for its shareholders than Enron; yet noone yells to tar and feather the "incompetent executives" of CSCO...Hmmm- I wonder why the US Senate does not investigate those much worse bumbling Silicon Valley tech executives? Smell I hypocrisy? And my calculation of Enron's true debt is in the range of US $20b, less than its outstanding current assets. Left to itself Enron should recover into a decent going concern- Unless the demagogic politicians try to inhibit its return toward some semblance of normalcy for their own selfish concerns- Gaius and Getullius Gracchus indeed!. As you well know investing in natural resources/gold companies, the boom/bust cycle for these commodity-based companies is quite common. Enron just self induced the "bust" cycle here- My guess is that they'll self-induce the recovery/boom cycle too....

To: SargeK who wrote (1320)	1/25/2002 11:42:56 PM
From: Doughboy	Read Replies (1) \| Respond to of 1433

SargeK, Interesting reading but with all due respect, a bit misguided. Please don't encourage others to get caught up in the ENE web. There is very little likelihood that ENE stock will be worth anything coming out of bankruptcy. Your posting of the Dabhol bid is a good example. Read it carefully: it does not say the bid was for $3 bb, it said that they would bid for the $3 bb operation. That's the value of the asset on Enron's books (and we know how reliable that is). And Enron only owns 65% of the very troubled business. My guess is the bids come in well below $1 bb for ENE's stake. AFter all the tsunami of information about ENE, how could you possibly believe that their reported shareholder equity of $9.5 bb is anywhere true? The trading platform that was supposedly worth at least $25 per share drew ZERO cash bids. That's astounding. The creditors are going to walk away with the whole kit and caboodle, and equity holders get squat. Doughboy.

To: SargeK who wrote (1320)	1/28/2002 3:09:54 PM
From: SargeK	Read Replies (3) \| Respond to of 1433

Debunking Myths and Unsupported Allegations Statement: “Enron Stock is worthless” Adding to the public outcry, condemning Enron, Pres. Bush commented on his-mother-in- laws loss (approx. $8000.) on Enron stock investment and Senator Gramm (during public inerview) stated: “that he and his wife Wendy had lost over $600k in Enron investments.” Facts: At the close on Friday, Jan. 25 the Price of ENRNQ was $0.49. With 743.9 shares of common stock Outstanding, Market Capitalization was $364.5 million. Stockholders equity (SE) on Sept. 30th, 2001 was $9.58 billion. While it is acknowledged that SE may have been seriously eroded, NO ONE knows the amount of residual value remaining for common shares. More importantly NO one will know SE or book value of Enron common stock until Enron files SEC reports containing 4Q/01 financial results and as future quarterly reports are filed with financial facts concerning recurring earnings and non-recurring earnings (i.e. asset sales); and/or the Company emerges from Chapter 11 containing facts and findings as determined by Judge Gonzalez are made public. Currently, facts that do exist concerning SE, suggests that several billion dollars will likely be retained for stockholders. Statement: "I think Enron is headed toward liquidation,” and "The shareholders are holding out hope for a reorganization to provide value to the stock, and I don't see that as likely at all." Jeff Dietert, an energy merchant analyst at Simmons & Co. Jan. 28, 2002 Facts: Company Press Releases reflect no consideration for Chapter 7, liquidation. Both the CEO and CFO have been encouraged by recent developments – (i.e. the UBS lease w/option to buy the Enron’s trading business, auction, pipeline compromise, and continuing asset sales) Further, the 15 member Credit Committee have unanimously approved these actions. The Credit Committee has supported Enron management actions because it is in their own best interest to do so. By avoiding selling assets at ‘Fire Sale’ prices in the current hostile environment, the process has been orderly. The “Wholesale Trading Business” is likely to command a significantly higher price 3 to 5 years from now; while contributing to positive cash-flow to Enron during the interim. UBS announced today they will cut about 300 of 800 jobs at the energy trading unit. Wuffli, President of the banking group’s executive board since December, said: “He expected the energy trading unit to return to its old business volumes in six to twelve months.” Statement: Ponzi Scheme - “The White House, correctly, declined to use taxpayer money to bail out a company whose executives were running a massive Ponzi scheme” Jeffry Bartash, CBS Market Watch – Jan. 19, 2002 Facts: The reporter’s allegation of a ‘Ponzi Scheme’ is not supported by any facts made public, that I am aware of. If such facts do exist they should have been included in his report. (IMO) Allegations incorrectly proclaimed as facts by the media and others should be publicly challenged by Enron Public Relations and legal counsel. Statement: Cover Up - “A bunch of ambitious executives at an old-line energy company wanted to become financial wizards instead of glorified natural-gas salesmen. Instead, they got in over their heads, lost a bundle and tried to cover it up.” Jeffry Bartash, CBS Market Watch - Jan. 19, 2002 Facts: The reporter’s allegation of ‘Cover Up’ like his allegation of a ‘Ponzi Scheme’ is not supported by facts currently available to the public. It was Enron that made public in its 3Q/01 report to the SEC reflecting an approximate $1.2 billion non-recurring charge to Stockholders Equity). Enron has publicly announced its cooperation with the SEC from the start. I know of no information based on fact that Enron has altered it position in this regard. Statement: Filings Impregnable – “Not one of Enron's top executives has spoken publicly about the company since its demise; its public securities filings, prior to its colossal failure, were themselves impregnable.” By Dan Ackman, Forbes.com Jan 28, 2002 Facts: Again, I find the reporter’s unsubstantiated allegations to be baseless. I have read many of the SEC filings. They are complex and perhaps difficult to understand by casual examination; but, I find the reports comprehensible and in no instance have I found them to be misleading. With only a H.S. education, I can only assume that if I can understand the reports, professional analysts, accountants, investigations, auditors, etc. should have been capable of interpreting the filings. Summary: While a great deal more unsupported allegations are being made, almost daily from many quarters, I wont attempt to respond to them all. I find many remarks and reports to be libelous and slanderous and I suspect some significant back-sliding by many in the not distant future. As hysteria is gradually replaced by calmer more objective voices I expect the overwhelming public bias against Enron will overtime reach more reasoned equilibrium. More accurate information supported by facts and findings by investigators will (IMO) be revealed and a less unfavorable image of Enron may emerge. Good luck SargeK

To: SargeK who wrote (1320)	2/20/2002 11:25:24 AM
From: SargeK	Read Replies (2) \| Respond to of 1433

Current Value of Enron stock is what the market says it is! Enron's Board of Directors says 'common' stock has no value! “The (ENRON) Board also announced that the company is moving forward with its reorganization efforts and intends to present restructuring alternatives to the Unsecured Creditors’ Committee during the second quarter of 2002. In connection with any such restructuring, Enron believes that the total amount of the liquidated, undisputed claims against Enron and its subsidiaries exceeds and will exceed the current fair market value of the consolidated operations and assets of Enron and its subsidiaries. Consequently, Enron believes that its existing equity does not and will not have value and that any Chapter 11 plan of reorganization confirmed by the Bankruptcy Court will not provide Enron’s existing equity with any interest in the reorganized debtor. Any and all Chapter 11 plans of reorganization will be subject to creditor votes and judicial determinations of confirmability.” enron.com Comment: What part of the above statement is difficult to comprehend? That statement is tantamount to a nuclear tipped torpedo in Enron's broad side. Unless there is a substantiated repudiation of the Board's statement, ENRNQ is headed for ZERO. The only thing supporting the price are some die-hards who refuse to accept the inevitable. Even if I thought 'common' would survive Chap 11, I would sell now and buy back at perhaps ONE CENT, or BETTER! FWIW Good luck SargeK