at [email protected] I believe this is the article=3D=3D=3D So why is Enron trading at such a huge multiple? Bethany McLean. Known for, “Is Enron Overpriced?” Spouse(s), Chris Wilford (m. , d) Sean M. Berkowitz(m. ). Children, 2. Bethany McLean (born December 12, ) is an American journalist who is a contributing first wrote about Enron with her article in the March 5, issue of Fortune entitled, “Is Enron Overpriced?”. Article profiles Bethany McLean, Fortune magazine financial writer who highlighted on its cover with the headline, ”Is Enron Overpriced?”.

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There are other concerns: So why is Enron trading at such a huge multiple? Retrieved March 11, The second–and somewhat belated–U. Perhaps most promising is its Enron Energy Services business, which manages all the energy needs of big commercial and industrial companies. Even quantitatively minded Wall Streeters who scrutinize the company for a living think so.

Both Skilling, who describes Enron’s wholesale business as “very simple to model,” and Fastow note that the artixle in Enron’s profitability tracks the growth in its volumes almost perfectly.

Enron doc debuts just in time for trial of Lay, Skilling

In addition to its commodities business, Enron has another division called Assets and Investments that is every bit as mysterious. Focuses on analysts’ valuation of several South African companies as of June 23, But for all the attention articcle lavished on Enron, the company remains largely impenetrable to outsiders, as even some of its admirers are quick to admit.

Views Read Edit View history. At the least, these sorts of hard-to-predict earnings are usually assigned a lower multiple. Stock prices and its link to investor acceptance; Evaluation of the real value of all-share agreements; Influence of economic indicators on the volatility of the stock markets.


McLean joined Vanity Fair as a contributing editor in And Enron isn’t leaving itself a lot of room for the normal wobbles and glitches that happen in any developing business. But describing what Enron does isn’t easy, because what it does is mind-numbingly complex.

Considers whether the stocks of United States energy company Enron are overpriced, as of March 5, How exactly does Enron make its money? Brown senior power strategist.

With the exception of a handful of people gambling with billions of dollars of other people’s money, even armchair investors can learn things from Enron’s gargantuan failure, McLean says. Considers the theory of stock price valuation and attempts to implement the theory. In the end, it boils down to a question of faith. But even among the books, the films and the news coverage, does McLean think casual followers of the Enron tale truly understand what she concedes is an often very complex corporate imbroglio?

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. This page was last edited on 11 Novemberat Indeed, people commonly refer to the company as “the Goldman Sachs of energy trading. But for all the attention that’s lavished on Enron, the company remains largely impenetrable to outsiders, as even some of its admirers are quick to admit.

Berkowitz is the former Director of the Enron Task Force; they met through their mutual connection to that case. Fortune magazine writer Bethany McLean is the first to admit she didn’t quite grasp the extent of Enron’s corruption when she wrote an article entitled “Is Enron Overpriced?

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Is Enron Overpriced?

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. That’s why, he says, Enron’s cash flow will be up dramatically, while debt will be “way down, way down” when the company publishes its full overpticed results, which are due out soon.

So broadband had better be a good business.

Of course everything could go swimmingly. If you thought Enron was just an energy company, have a look at its SEC filings. SoftBank and Toyota want driverless cars to change the world.

Enron doc debuts just in time for trial of Lay, Skilling – Chicago Tribune

Enron has an even higher opinion of itself. Brown senior power strategist. Create your own alert to be notified on topics you’re interested in. In its 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 enfon commodity and equity prices, interest rates, and foreign exchange rates.

It’s in a bunch of complex businesses.