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

• The bandwidth trading component was in operation. Broadband intermediation
was ahead of where Enron expected it to be. There was a lot of interest in this.
The counterparties were quickly growing and Enron was seeing very, very strong
growth that, frankly, surprised it. Enron was very bullish on the growth in the
intermediation side of this business and was ahead of where it expected to be.
• The recently announced agreement between Enron and Blockbuster evidenced
what Enron believed was a fundament shift. Enron executed an exclusive 20 year
contract with Blockbuster to deliver movies on demand over the Enron intelligent
network. This was a first-of-a-kind contract and, Enron believed, the largest
broadband agreement ever signed.
• Enron would provide all the wholesale connectivity and deliver content to last mile
providers at 1.5 megabit per second, greatly exceeding the standard broadband
speeds. Enron would receive a fee for each movie delivered. The potential longterm
contract value or revenues over the life of the contract were expected to
exceed well over $1 billion.
• Enron was pleased with another very strong quarter. Enron's established
networks worldwide, together with its unique strategy and broad capabilities,
would provide for continued strong performance and increased shareholder value.
• Skilling had been with the Company in one form or another for 18 years and he
had never seen the Company in better shape. Enron's core markets moved from
strength to strength. Enron had very, very good growth opportunities across the
board and they were really excited about the prospects for the future.
• Enron felt extremely good about its ability to sustain the performance that it had
posted in the wholesale business over the last ten years. That was likely to
continue.
• Enron had a great quarter and was very, very pleased by what it was seeing in the
marketplace and the performance of all of its businesses.
• Enron was forecasting 01 and 02 EPS of $1.40+ and $1.69+.
248. On 7/24/00, JP Morgan issued a report on Enron. It rated Enron a "Buy," forecast 00
and 01 EPS of $1.41 and $1.69 for Enron and stated:
Yesterday's earnings and business unit performances were more convincing
evidence that Enron is the "best-in-class" in this sector, and we reiterate our Buy
rating with a $105 price target. All of its businesses are doing a superb job of
maximizing market opportunities, growing market share, and maintaining very
strong growth rates. Great fundamentals and competitive advantage continue to
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