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

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ECI has two new and related businesses. Company is the first mover and has unique
technology advantage to support the following integrated services:
1. Performance-enhancing Network for Internet Content. The company has
developed a software platform that can be used to enable guaranteed high
performance Internet content delivery over its (or third parties') optical network
backbone infrastructure....
2. Bandwidth Capacity Reselling – Unique in the marketplace; Enron already
dominates in the same business in energy markets. ECI exploits fixed-cost pricing
model of traditional long haul carriers, buys unused portion of ISP backbone then
redistributes at profit.
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... We recommend investors add aggressively to current positions or establish core
positions in the stock at current levels, ahead of the company's January 20th analyst
conference. In our opinion, the company can justify a potential market value for ECI
between $25 and $30 billion at the conference.
196. On 1/18/00, Enron announced better-than-expected 4thQ 99 and full year 99 results:
Enron Corp. announced today very strong financial and operating results for
the full year 1999, including:
• a 28 percent increase in revenues to $40 billion;
• a 37 percent increase in net income to $957 million;
• an 18 percent increase in earnings per diluted share to $1.18;
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• a more than doubling of new retail energy services contracts to $8.5 billion.
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"Our strong results in both the fourth quarter and the full year 1999 reflect
excellent performance in all of our operating businesses. Our wholesale business
again registered strong profitability and growth in the rapidly expanding, deregulating
energy industry worldwide. Our retail business is now profitable. This business
has reached critical mass in contracting activity and service capabilities, and
profitability is expected to accelerate rapidly," said Kenneth L. Lay, Enron chairman
and chief executive officer. "In addition, Enron continues to develop innovative,
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