Enron Corp. - University of California | Office of The President

160. On 7/14/99, The Houston Chronicle reported:
These lines of business are some of the fastest-growing segments of Enron's
business, said Jeffrey Skilling, Enron's president. "It is growing very fast and it will
continue to show strong growth," Skilling said.
* * *
The wholesale energy operations and services group includes the company's
expanding communications business, which Skilling sees as one of the best growth
opportunities among Enron's various divisions. "To date, we have just gotten our
toes in the water, but we really like what we see in this business," Skilling said.
161. On 7/14/99, CIBC issued a report on Enron, increasing Enron's forecasted 00 EPS
to $1.35 and stating:
Enron reported 1999 Q-2 income of $222 MM or $[0.27] per share ... above our
$[0.24] estimate .... [W]e believe longer term earning power should build at
attractive rates ....
We are raising our 1999 and 2000 EPS estimates to $[1.175] and $[1.35] to reflect
the stronger quarter and improved prospects across wholesale energy and retail
markets.
* * *
... [E]arnings power should continue to build over the next five years.
162. On 7/14/99, Merrill Lynch issued a report on Enron. The report rated Enron a "Long-
Term Buy" and forecast 00 EPS of $1.35 and an 18% five-year EPS growth rate. It also stated:
• ENE is very well managed, in our opinion, with very high ... growth rates and
near-term EPS growth in the 15% to 17% area.
163. On 7/20/99, CitiGroup issued a report rating Enron a "Buy," forecasting 00 EPS of
$1.30 for Enron and stating:
Enron reported a significant increase in second quarter earnings. Earnings rose
29.6% to $[0.27] per diluted share versus $[0.21] the second quarter of 1998. Net
income increased 53.1% to $222 million up from $145 million.
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