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

• No other company offered such impressive sustainable growth.
• Enron was hitting on all eight cylinders. Enron's outlook was excellent. Enron was
very optimistic.
• Enron was a global powerhouse, with EPS growth to exceed 17%. Enron would
maintain strong earnings growth for years.
(b) During 00, as Andersen certified Enron's record annual profits and financial
position, Enron, with the participation of its lawyers and its banks stated:
• Enron's strong financial results were due to strong results in all operations.
• Enron had very strong momentum. Its new trends were sustainable and would
accelerate.
• Enron's business was booming. All its operations were gaining momentum.
• Investors were about to see breakout performance of EES and rapid growth and
development of EBS.
• EES's new contracts and profitability were accelerating. EES had the potential to
double Enron's size in a few years.
• EBS broadband trading was accelerating. The market was larger than expected, and
would reach $100 billion in a few years with 3%-4% margins.
• Enron/Blockbuster video-on-demand ("VOD") deal a "Killer Opp." Unparalleled
quality of service. Contract worth over $1 billion. VOD to rollout nationally in 01.
All components in place. VOD had solid technology and platform.
• Enron's WEOS merchant investments were protected through hedging.
• Enron had monumental earnings potential over the next five years. Enron was well
managed and a pioneer in global energy. Enron was never in better shape. Enron
was very optimistic about the continued strong outlook for the Company.
• Growth and strong earnings were why investors should buy Enron stock.
15. As a result of Enron's strong EPS, the positive statements about its business, and the
forecasts of continuing strong earnings growth, Enron's common stock was a very strong performer,
while its debt and preferred securities also traded at high prices, reflecting Enron's apparent strong
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