Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (253460)	5/7/2002 6:22:13 PM
From: Mr. Whist	Read Replies (2) \| Respond to of 769670

I guess the key question, in Enron's case, is: Was the company (a) actually losing money, or (b)"losing money" on paper because of accounting sleight-of-hand? My guess would be (b). Re: "In the end the company fell apart because it was producing losses not profits." Enron was a pyramid scheme with the pointed top of the pyramid sticking in the ground. It collapsed under its own weight. I read with amusement this week on how the company plans to reorganize. After the California attorney general's office gets done with Enron in state court in Sacramento for bilking the taxpayers of California, there won't be anything left of Enron except for the big building in Houston and Kenny Boy's airplane that he used to shuttle GWB around the country. Re: "A better example for your argument might be some profitable company which is avoiding taxes." You're correct.

To: TimF who wrote (253460)	5/8/2002 12:06:59 AM
From: tejek	Read Replies (1) \| Respond to of 769670

If they where losing money, then they had no profits to pay taxes on. Tim, just for the record, they did not lose money until the third quarter of 2001. In that quarter they wrote off a loss on Raptors SPEs [whatever they are]. However, they still made a profit of $.17 per share for the first three quarters of 2001. But they did not pay any income taxes on that profit..........probably because of the bankruptcy filing. In the 4 years prior to 2001, they paid income taxes each of those years. ted