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

Enron is a well-managed diversified energy company that has been very successful
.... Lay and ... Skilling lead a dynamic and innovative management team that has
grown an interstate pipeline company into a premier global energy company.
* * *
We remain impressed with Enron's continued ability to produce strong earnings
growth in its core wholesale energy businesses. The swift rise of the retail segment
to profitability has also been very impressive. Enron management has made very
aggressive moves into several new businesses with great success and delivered on
or exceeded nearly every promise made on schedule.
We fully anticipate that the company will be capable of producing EPS growth in
excess of 15% ....
* * *
We modestly raised our 3- to 5-year EPS growth rate to 15.1% from 14% based on
the continuing strength in Enron's core energy businesses.
258. On 9/19/00, Bank America issued a report on Enron. It rated Enron a "Strong Buy"
and forecast 00 and 01 EPS of $1.40 and $1.60 and a 15% secular EPS growth rate for Enron. It also
stated:
• Vice Chairman Lou Pai's presentation at our annual investment conference
was very well attended. The key message in the presentation is that Enron
is at the cusp of reaping rewards from businesses that they have created
and built up over the past few years, namely Enron Energy Services ... and
Enron Broadband Services.
* * *
• Enron Energy Services continues to capitalize on the energy-outsourcing
trend. The growth is remarkable as Enron more than doubled its contract
value to $7.5 billion in 1H00. We believe Enron is on track to achieve its
$16 billion target and will likely hit a new plateau of growth by the end of
this year.
• On the Enron Intelligent Network, the fiber build out is on schedule for
14,500 miles by the end of this year. It currently has more than 5,000 miles
complete .... Enron's foray into bandwidth intermediation. Enron has
already transacted with 17 counter parties with 60 counter parties currently
reviewing contract terms.
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