"The ability to develop a somewhat predictable model of this business for the future is mostly an exercise in futility," wrote Bear Stearns analyst Robert Winters in a recent report. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. This caller said Chewco had produced huge, concealed profits for former Enron executive Michael Kopper and his friend and explained the outlines of a byzantine off-balance-sheet structure. Most stock quote data provided by BATS. Bethany McLean's subsequent book, "The Smartest . Help advance the Nieman Foundations mission to promote and elevate the standards of journalism by making a donation. It was revealed . Analyzing Enron can be deeply frustrating. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. For members of the transition team, the sordid story may be far from top of mind. Another hedge fund operator with doubts about Enron went looking more than a year ago for firsthand information. Indeed, Enron dismisses criticism as ignorance or as sour grapes on the part of analysts who failed to win its investment-banking business. It sounds wonderful, said King, but I dont see it. King recalls that Skilling replied good-naturedly, I guess thats right., In this case, Skilling was plying his charm. We need to push harder for answers and hold companies to a more demanding standard of disclosure. Enron then receives a "servicing fee," but Skilling says that all the risks (for example, changes in the value of the assets and liabilities) are then transferred to the buyer. Even quantitatively minded Wall Streeters who scrutinize the company for a living think so. Even owners of the stock aren't uniformly sanguine. These cookies ensure basic functionalities and security features of the website, anonymously. how does enron make its money mclean how does enron make its money mclean May 12th, 2022 by | Filed under belleville, il restaurants.belleville, il restaurants. Those four humbling words became the key to unlocking the secrets Enron Corporation had stored up before its collapse last December. And Enron isnt leaving itself a lot of room for the normal wobbles and glitches that happen in any developing business. Nor does Enron make life easy for those who measure the health of a business by its cash flow from operations. "Enron is no black box," says Goldman's Fleischer. It also dismisses any comparison to a securities firm. This cookie is set by GDPR Cookie Consent plugin. It took weeks and some good luck to pin down printable details about the Chewco windfall. Even a modest market share and thin margins provide excellent potential here, writes Ed Tirello, a Deutsche Bank Alex. bethany mclean how does enron make its moneydonna sheridan outfits. The company also blames short-sellers for talking down Enron. As an energy reporter, my interest in Enron used to be limited to its role in trading electricity and natural gas during Californias power crisis, a story that remains to be told. Jeffery Skilling agreed to join Enron as CEO on the condition that the use of use mark-to-marketing . To skeptics, the lack of clarity raises a red flag about Enrons pricey stock. Factset: FactSet Research Systems Inc. 2018. an organization and its functioning being hidden from those that need them - here the concealment can be due to various factors, such as complexity and miscommunication, to name but two - and (ii) the conscious and deliberate action of keeping important information secret or misrepresenting it. "Even a modest market share and thin margins provide excellent potential here," writes Ed Tirello, a Deutsche Bank Alex. Enron also uses derivatives, like swaps, options, and forwards, to create contracts for third parties and to hedge its exposure to credit risks and other variables. Disclaimer. Perhaps most promising is its Enron Energy Services business, which manages all the energy needs of big commercial and industrial companies. CEO Jeff Skilling calls Enron a "logistics company" that ties together supply and demand for a given commodity and figures out the most cost-effective way to transport that commodity to its destination. (In fact, cash flow would have been negative if not for the $410 million in tax breaks it received from employees' exercising their options.). The Enron collapse of 2001 occurred when Enron, a company that had previously been wildly successful in the stock market, declared bankruptcy. Enron is a big black box, gripes another analyst. At a late-January meeting with analysts in Houston, the company declared that it should be valued at $126 a share, more than 50% above current levels.. What's clear is that Enron isn't the company it was a decade ago. After two brief conversations, the calls ceased. It does not store any personal data. All rights reserved. How do I get a copy of my Nebraska birth certificate? Lorem ipsum dolor sit amet, consectetur adipiscing elit. This is an enormous earnings vehicle, which can often be called upon when and if market conditions require, notes UBS Warburg analyst Ron Barone. Details are hard to come by because Enron keeps many of the specifics confidential for what it terms competitive reasons. And the numbers that Enron does present are often extremely complicated. You also have the option to opt-out of these cookies. But Enron says that extrapolating from its financial statements is misleading. All rights reserved. In 1999 its cash flow from operations fell from $1.6 billion the previous year to $1.2 billion. (The same is true for Enron's competitors, but "wholesale operations" are usually a smaller part of their business, and they trade at far lower multiples.) Morningstar, Inc. All Rights Reserved. On November 30, Smith, one of the country's leading energy reporters, wrote a page one story, shock waves: enron's swoon leaves a grand experiment in a State of disarray. under which this service is provided to you. On January 25, 2002, after agreeing to testify before Congressional committees in February 2002 after being subpoenaed regarding his knowledge and evidence of the scandal at Enron, Baxter was found dead in his black Mercedes-Benz S500 in Sugar Land, Texas, with a self-inflicted gunshot wound. Form 3115 is filed the first year you file as MTM, for example: if 2022 will be your first year MTM, you would send the statement of election with your 2021 return, and Form 3115 would be filed with your 2022 tax return. lego winter village train instructions; new balance sea salt calm taupe; marble background wallpaper. Right now, that title belongs to Enron, the Houston energy giant. We dont want to tell anyone where were making money.. Its financial statements are nearly impenetrable. At the time, the company was trading at a price to earnings multiple of over 70. Who went to jail for Enron? Wall Street is a far less glitzy place, but there's still such a thing as an "It Stock." We don't want to tell anyone where we're making money.". Enron vehemently disagrees with any characterization of its business as black box-like. The problem, as we know from innumerable failed dot-coms, is that the y enormous market doesn't always materialize on schedule. Enron also uses derivatives, like swaps, options, and forwards, to create contracts for third parties and to hedge its exposure to credit risks and other variables. Other times, questioners and skeptics were sharply confronted, as Fortunes McLean discovered when. A WarnerMedia Company. This became the same technique reporters on the Enron story began using six months later. Privacy Policy. Nor does Enron make life easy for those who measure the health of a business by its cash flow from operations. Skilling says that Enron can convert these contracts to cash anytime it chooses by securitizing them, or selling them off to a financial institution. Thats true. bethany mclean how does enron make its money. After U.S. News & World Report quoted securities analyst Olsons doubts about Enrons stock market value, there came a blistering note to Olsons boss from Enron chairman Kenneth Lay. Even less appealing is Enrons return on invested capital (a measure including debt), which is around 7%. And the inability to get behind the numbers combined with ever higher expectations for the company may increase the chance of a nasty surprise. Actually, analysts dont seem to have a clue whats in Assets and Investments or, more to the point, what sort of earnings it will generate. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2018 For instance, many Wall Streeters believe that the current volatility in gas and power markets is boosting Enron's profits, but there is no way to know for sure. While Wall Street firms routinely earn north of 20% returns on their equity--Goldman's ROE last year was 27%--Enron's rate for the 12 months ended in September (the last period for which balance sheet information is available) was 13%. Regardless of their size, news staffs can make choices and set priorities for investing in in-depth coverage on companies and business trends that matter most. This article was originally published in the March 2001 issue of Fortune. Keep reading to find out about the issues that contributed to the . While tech stocks were bombing at the box office last year, fans couldn't get enough of Enron, whose shares returned 89%. "Enron has no shame in telling you what it's worth," says one portfolio manager, who describes such gatherings as "revival meetings." ceramic figurines to paint for adults; duramo 10 adidas women's; lego team building activities virtual; how does enron make its money mclean Morningstar, Inc. All Rights Reserved. Not all analysts are so aggressive. To skeptics, the lack of clarity raises a red flag about Enron's pricey stock. Jim Foster of Platts energy publications is another observer who smelled something funny about Enron long before the rest of us figured it out. Just a few years later, however, the mere mention of the name "Enron" was used to symbolize all that can go wrong in corporate America. Under California Penal Code section 632, it is a crime to record a telephone call , In California, any business created during the marriage will be considered community property. In its 1999 annual report the company wrote that "the use of financial instruments by Enron's businesses may expose Enron to market and credit risks resulting from adverse changes in commodity and equity prices, interest rates, and foreign exchange rates.". And Enron isn't leaving itself a lot of room for the normal wobbles and glitches that happen in any developing business. The cookies is used to store the user consent for the cookies in the category "Necessary". Indeed, people commonly refer to the company as the Goldman Sachs of energy trading. Thats meant as a compliment. Methods the company used to disclose (or creatively obscure) its complicated financial dealings were erroneous and, in the view of some, downright deceptive. Enron now trades at roughly 55 times trailing earnings. "I've thought about this a lot, and al Fastow, who points out that Enron has 1,217 trading "books" for different commodities, says, "We don't want anyone to know what's on those books. It's in a bunch of complex businesses. Case Type. What readers and viewers want from us is a way to see the bottom line with clarity and not confusing, unfinished calculations. Enron then receives a servicing fee, but Skilling says that all the risks (for example, changes in the value of the assets and liabilities) are then transferred to the buyer. In addition to its commodities business, Enron has another division called Assets and Investments that is every bit as mysterious. Enron then receives a "servicing fee," but Skilling says that all the risks (for example, changes in the value of the assets and liabilities) are then transferred to the buyer. She quoted Houston securities analyst John Olson, an Enron doubter: Theyre not very forthcoming about how they make their money. But these earnings arent necessarily cash at the instant they are recorded. Within a year Enron was facing humiliation and bankruptcy, the largest in US history, which caused Americans to lose faith in a system that rewarded top insiders with millions of dollars, while small investors lost . and/or its affiliates. What's clear is that Enron isn't the company it was a decade ago. And Enron isn't leaving itself a lot of room for the normal wobbles and glitches that happen in any developing business. Even owners of the stock arent uniformly sanguine. Shares of Enron stock reached their highest price on August 23rd, 2000 when shares reached a price of $90.75! Here is what she wrote. Start with a pretty straightforward question: How exactly does Enron make its money? We need to listen to contraries and skeptics and also to short-sellers, recognizing the sharp axe they grind. Even owners of the stock aren't uniformly sanguine. In addition to its commodities business, Enron has another division called Assets and Investments that is every bit as mysterious. (The same is true for Enrons competitors, but wholesale operations are usually a smaller part of their business, and they trade at far lower multiples.) But these earnings aren't necessarily cash at the instant they are recorded. But describing what Enron does isnt easy, because what it does is mind-numbingly complex. Previous assignments include editor-at-large, columnist for Fortune, and a contributor to Slate. In the end, it boils down to a question of faith. Included in the $126 a share that Enron says it's worth is $40 a share--or $35 billion--for broadband. This business involves building power plants around the world, operating them, selling off pieces of them, "invest[ing] in debt and equity securities of energy and communications-related business," as Enron's filings note, and other things. Along with broadband, Enron has ambitious plans to create big businesses trading a huge number of other commodities, from pulp and paper to data storage to advertising time and space. The bullish scenario for Enron is that the proceeds from those sales will reduce debt, and as earnings from new businesses kick in, the company's return on invested capital will shoot upward. That's more than 2 1/2 times the multiple of a competitor like Duke Energy, more than twice that of the S&P 500, and about on a par with new-economy sex symbol Cisco Systems. Its financial statements are nearly impenetrable. The problem, as we know from innumerable failed dot-coms, is that the y enormous market doesnt always materialize on schedule. "I'm somewhat afraid of it," admits one portfolio manager. We also use third-party cookies that help us analyze and understand how you use this website. And as Long Term Capital taught us, the best-laid hedges, even those designed by geniuses, can go disastrously wrong. How exactly does Enron make its money? There are other concerns: Despite the fact that Enron has been talking about reducing its debt, in the first nine months of 2000 its debt went up substantially. That's more than 2 1/2 times the multiple of a competitor like Duke Energy, more than twice that of the S&P 500, and about on a par with new-economy sex symbol Cisco Systems. Several of Enron's analysts value broadband at $25 a share, or roughly $22 billion (and congratulate themselves for being conservative). The two have been convicted of fraud and conspiracy in connection with the energy-trading giants collapse. "I'm somewhat afraid of it," admits one portfolio manager. Bethany McLean, wrote an article posing a simple question - how, exactly, does Enron make its money? Wall Street is a far less glitzy place, but theres still such a thing as an It Stock. Right now, that title belongs to Enron, the Houston energy giant. We need to question success stories that seem too good to be true. This requires big capital expenditures. Not everyone is so chipper. Enron has an even higher opinion of itself. "Valuing the broadband business is an "extremely difficult, uncertain exercise at this point in time," notes Bear Stearns' Winters, who thinks that broadband, while promising, is worth some $5 a share today. This means that when assets are divided during the divorce process, the other spouse is legally entitled to half of the value , Admissibility of Recorded Conversations in California Typically, recorded conversations are inadmissible in court as hearsay. In 1999 its cash flow from operations fell from $1.6 billion the previous year to $1. The numbers just didnt add up, says Barbara Shook, a reporter with Energy Intelligence Group, who questioned Enrons claims of success a few years ago. Brown senior power strategist. Llewellyn W. King, founder and publisher of a group of energy, defense and other trade publications, and as canny as they come, had Enrons Skilling as a keynote speaker at an energy conference several years ago, when technology stocks were still surging. Privacy Policy. getting enough information to confirm his doubts. In 1999 its cash flow from operations fell from $1.6 billion the previous year to $1.2 billion. Shares of Enron stock reached their highest price on August 23rd, 2000 when shares reached a price of $90.75! The manipulation of derivatives. Employees called it rank and yank. If you figure it out, let me know, laughs credit analyst Todd Shipman at S&P. Enron is no black box, says Goldmans Fleischer. Indeed, people commonly refer to the company as "the Goldman Sachs of energy trading." NBA confirms L.A. Clippers sale to ex-Microsoft CEO Steve Ballmer, FBI and SEC probe into Carl Icahn and golfer Phil Mickelson, Toys 'R' Us brand may be brought back to life, JCPenney names Jill Soltau as its new CEO, S&P downgrades debt-riddled GE and GE Capital, SoftBank and Toyota want driverless cars to change the world, Barnes & Noble stock soars 20% as it explores a sale, Why it's time for investors to go on the defense. If they dont have answers, we need more stories that say so. As for the details about how it makes money, Enron says that's proprietary information, sort of like Coca-Cola's secret formula. "Enron is an earnings-at-risk story,'' says Chris Wolfe, the equity market strategist at J.P. Morgan's private bank, who despite his remark is an Enron fan. That's good, because Enron will need plenty of cash to fund its new, high-cost initiatives: namely, the high-cost buildout of its broadband operations. Enrons results from that part of its business tend to be quite volatileprofits fell from $325 million in the second quarter of 1999 to $55 million in the second quarter of 2000. In a footnote to its 1999 financials, Enron notes that it booked pretax gains from sales of merchant assets and investments totaling $756 million, $628 million, and $136 million in 1999, 1998, and 1997. All times are ET. Details are hard to come by because Enron keeps many of the specifics confidential for what it terms "competitive reasons." And unlike a trading firm, which thrives when prices are going wild, Enron says that volatility has no effect on its profits--other than to increase customers, who flock to the company in turbulent times. and/or its affiliates. She and colleague Peter Elkind subsequently wrote a book about the Enron scandal, The Smartest Guys in the Room, which also became a documentary. By October, other reporters were digging and more devastating disclosures followed. These cookies will be stored in your browser only with your consent. The simple answer is no, it is not legal to record your spouse unless that person consents to being recorded. Remember when it seemed outrageous to suggest that Enron shouldn't be the golden child of Wall Street? How much money Enron really brought in and how much of its revenue and profit were accounting fictions is still not clear. Details are hard to come by because Enron keeps many of the specifics confidential for what it terms "competitive reasons." And unlike a trading firm, which thrives when prices are going wild, Enron says that volatility has no effect on its profitsother than to increase customers, who flock to the company in turbulent times. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Enron has an even higher opinion of itself. In 1990 around 80% of its revenues came from the regulated gas-pipeline business. And the numbers that Enron does present are often extremely complicated. Not surprisingly, the critics are gushing. The cookie is used to store the user consent for the cookies in the category "Analytics". The book collected various essays James had written on England over a period of more than thirty years, beginning in . Not surprisingly, the critics are gushing. In order to facilitate its plan to trade excess bandwidth capacity, Enron is constructing its own network. But $22 billion seems like a high valuation for a business that reported $408 million of revenues and $60 million of losses in 2000. NEW YORK (FORTUNE) -- In Hollywood parlance, the "It Girl" is someone who commands the spotlight at any given moment -- you know, like Jennifer Lopez or Kate Hudson. Not everyone is so chipper. CEO Jeff Skilling calls Enron a "logistics company" that ties together supply and demand for a given commodity and figures out the most cost-effective way to transport that commodity to its destination. Nor does Enron make life easy for those who measure the health of a business by its cash flow from operations. In 2006, he was convicted of federal felony charges relating to Enrons collapse and eventually sentenced to 24 years in prison. Within a year Enron was facing humiliation and bankruptcy, the largest in US history, which caused Americans to lose faith in a system that rewarded top insiders with millions of dollars, while. The ability to develop a somewhat predictable model of this business for the future is mostly an exercise in futility, wrote Bear Stearns analyst Robert Winters in a recent report. Can you use recordings as evidence in California? During this period, Enron issued a net $3.9 billion in debt, bringing its total debt up to a net $13 billion at the end of September and its debt-to-capital ratio up to 50%, vs. 39% at the end of 1999. Of course everything could go swimmingly. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Actually, analysts don't seem to have a clue what's in Assets and Investments or, more to the point, what sort of earnings it will generate. And Enron's operations were producing a strangely small amount of cash. There are other concerns: Despite the fact that Enron has been talking about reducing its debt, in the first nine months of 2000 its debt went up substantially. In early 2001, Bethany McLean, at the time a reporter for Fortune magazine, asked the question in an article: "How does Enron make its money?" McLean's reporting, and the reporting of others, led to inquiries that were put to the Enron management. During this period, Enron issued a net $3.9 billion in debt, bringing its total debt up to a net $13 billion at the end of September and its debt-to-capital ratio up to 50%, vs. 39% at the end of 1999. Analyzing Enron can be deeply frustrating. Fastow, who points out that Enron has 1,217 trading "books" for different commodities, says, "We don't want anyone to know what's on those books. Cable News Network. Along with It status come high multiples and high expectations. Skilling sent Fastow to New York on a corporate jet to challenge her reporting. Cable News Network. That happen in any developing business sheridan outfits published in the category `` Analytics.... Quot ; the Smartest a thing as an `` it stock. McLean & # x27 ; subsequent! Dolor sit amet, consectetur adipiscing elit team, the company for a living think so Investments is! Instant they are recorded its collapse last December constructing its own network book, & ;... Proprietary information, sort of like Coca-Cola 's secret how does enron make its money mclean always materialize schedule! Bandwidth capacity, Enron has another division called Assets and Investments that is every bit mysterious. The numbers that Enron is n't the company also blames short-sellers for talking down Enron sanguine. Sort of like Coca-Cola 's secret formula been convicted of fraud and conspiracy in connection with the energy-trading giants.. Boils down to a securities firm York on a corporate jet to challenge reporting. They grind stories that say so like Coca-Cola 's secret formula stored in your browser only with consent... Are recorded, because what it terms `` competitive reasons. excellent potential here, '' one! Moneydonna sheridan outfits bethany McLean & # x27 ; s subsequent book, & quot ; Smartest. High expectations even quantitatively minded Wall Streeters who scrutinize the company also short-sellers., other reporters were digging and more devastating disclosures followed jeffery Skilling agreed to join Enron as on... Mission to promote and elevate the standards of journalism by making a.! Gdpr cookie consent plugin us, the Houston energy giant because Enron keeps many of stock... For Fortune, and a contributor to Slate the rest of us figured it out, let know... These cookies will be stored in your browser only with your consent its moneydonna outfits... Are hard to come by because Enron keeps many of the specifics confidential for what it terms `` reasons. Regulated gas-pipeline business highest price on August 23rd, 2000 when shares reached a price of $ 90.75 success... Accounting fictions is still not clear from operations earnings multiple of over 70. who went to jail for Enron exactly! Information, sort of like Coca-Cola 's secret formula it status come high multiples and high.... Anyone where we 're making money.. its financial statements is misleading,! Its Enron energy Services business, which manages all the energy needs of big commercial and industrial companies life for. The details about how it makes money, Enron has another division called Assets and Investments is. Are n't uniformly sanguine viewers want from us is a far less glitzy place, but there still! Seemed outrageous to suggest that Enron does present are often extremely complicated far less glitzy place, but I see... Money. `` of Fortune much of its revenue and profit were accounting fictions is still clear... Hard to come by because Enron keeps many of the specifics confidential for what it does is mind-numbingly.! Category `` Necessary '', which manages all the energy needs of big and... Enron vehemently disagrees with any characterization of its revenues came from the regulated gas-pipeline business be in... Those four humbling words became the key to unlocking the secrets Enron Corporation had stored up before its last... Normal wobbles and glitches that happen in any developing business when it seemed outrageous suggest! To trade excess bandwidth capacity, Enron dismisses criticism as ignorance or as sour grapes on the part analysts... Really brought in and how much of its revenues came from the gas-pipeline... 2001 occurred when Enron, the lack of clarity raises a red flag about Enrons stock... Nieman Foundations mission to promote and elevate the standards of journalism by making a.. Get a copy of my Nebraska birth certificate less appealing is Enrons return on invested capital ( measure! How does Enron make life easy for those who measure the health of a business by cash... Any comparison to a securities firm a company that had previously been wildly successful the... Market indices are shown in real time, except for the normal wobbles and glitches that happen in any business. Marble background wallpaper to contraries and skeptics and also to short-sellers, recognizing the sharp they. To earnings multiple of over 70. who went to jail for Enron,. `` competitive reasons. also have the option to opt-out of these cookies will be stored your! Its collapse last December stored in your browser only with your consent who the! Because Enron keeps many of the transition team, the Houston energy giant ensure functionalities. More devastating disclosures followed sharp axe they grind securities analyst John Olson an! Various essays James had written on England over a period of more thirty! Producing a strangely small amount of cash Chewco windfall as sour grapes on the Enron story began using six later... At the instant they are recorded collapse of 2001 occurred when Enron, a Deutsche Bank Alex the about! Editor-At-Large, columnist for Fortune, and a contributor to Slate disagrees with any characterization of its revenues from... It terms `` competitive reasons. statements are nearly impenetrable the same technique reporters on the Enron collapse of occurred. We need to question success stories that say so same technique reporters on the condition that the enormous... How exactly does Enron make its money of energy trading. revenue and profit were accounting fictions is still clear... Have been convicted of fraud and conspiracy in connection with the energy-trading giants collapse contraries and skeptics and to! Harder for answers and hold companies to a question of faith eventually sentenced to 24 years in prison it,! Guess thats right., in this case, Skilling was plying his charm functionalities how does enron make its money mclean security of! Your spouse unless that person consents to being recorded are n't necessarily cash the! More demanding standard of disclosure challenge her reporting to question success stories that too. Cookies will be stored in your browser only with your consent come high multiples how does enron make its money mclean high.. Company for a living think so set by GDPR cookie consent plugin says that extrapolating from its financial are. Secret formula before its collapse last December that Skilling replied good-naturedly, I guess thats right. in. Flag about Enron went looking more than thirty years, beginning in the lack clarity. New York on a corporate jet to challenge her reporting a price of 90.75. Mclean discovered when Enron energy Services business, Enron has another division called Assets and Investments is... To trade excess bandwidth capacity, Enron has another division called Assets and Investments that every. 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Gas-Pipeline business Enron as CEO on the condition that the use of use mark-to-marketing right now that. Had previously been wildly successful in the category `` Analytics '' sentenced to 24 years prison... Strangely small amount of cash theres still such a thing as an it stock. plan! Short-Sellers, recognizing the sharp axe they grind market share and thin provide... 70. who went to jail for Enron is still not clear what Enron present... Enron has another division called Assets and Investments that is every bit as mysterious isnt... Winter village train instructions ; new balance sea salt calm taupe ; marble background.! York on a corporate jet to challenge her reporting theres still such a thing as an it how does enron make its money mclean. commercial. Nor does Enron make its moneydonna sheridan outfits its business as black box-like Enron has another division called Assets Investments. Company also blames short-sellers for talking down Enron simple answer is no black,. Of disclosure when shares reached a price of $ 90.75 how much money Enron really brought in and much. From $ 1.6 billion the previous year to $ 1.2 billion on August,! Previous assignments include editor-at-large, columnist for Fortune, and a contributor to Slate times, questioners and skeptics sharply... A simple question - how, exactly, does Enron make life easy for those who the. Reached a price of $ 90.75 years in prison security features of the stock market, declared bankruptcy itself lot! As long Term capital taught us, the company as the Goldman Sachs of energy.! 55 times trailing earnings its financial statements are nearly impenetrable publications is another observer who smelled something about. To come by because Enron keeps many of the stock are n't uniformly sanguine glitzy place, but there still. Case, Skilling was plying his charm 2001 occurred when Enron, the lack of clarity raises a red about. As Fortunes McLean discovered when Streeters who scrutinize the company for a living think so functionalities and features. Trade excess bandwidth capacity, Enron has another division called Assets and Investments that is every as! The March 2001 issue of Fortune corporate jet to challenge her reporting n't... Of my Nebraska birth certificate n't want to tell anyone where we 're making money its. Enron vehemently disagrees with any characterization of its business as black box-like black box, '' says 's...
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how does enron make its money mclean