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

• In terms of content, Enron Broadband Services with Blockbuster are
expected to be available in two U.S. cities by the end of this year with a full
roll out in 2001.
259. On 9/21/00, CitiGroup issued a report on Enron which stated:
Mark-To-Market Brouhaha; Buy Energy Marketers
• Recent press has questioned accounting practices of energy marketers.
Concerns center on use of "mark-to-market" accounting
• View concerns as unfounded
* * *
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• Reiterate [Buy] rating on Enron ...
Concerns over accounting practices appear to have driven down the share prices of
energy marketers .... We see these concerns as unfounded. Mark-to-market
accounting is standard industry practice that actually reduces risk and provides a
more accurate earnings picture than the use of cash or accrual accounting, in our
view. Recommend purchase on share price weakness of ENE ....
260. On 9/27/00, JP Morgan issued a report on Enron. It rated Enron a "Buy" and forecast
00 and 01 EPS of $1.41 and $1.69 for Enron. It also stated:
We reiterate our Buy on Enron with our $115 price target, as Enron continues to
justify our confidence that its new businesses will mimic its track record of growth
of its energy businesses....
... [W]e continue to see warranted upside from its current price in the mid-80s.
261. After Enron announced the apparently fantastic Blockbuster VOD venture, reported
its better-than-expected 2ndQ 00 results and held its analyst conference in 7/00, where it again
stressed the enormous potential of the Blockbuster agreement and the quality of Enron's broadband
content delivery system, Enron stock soared to ever higher levels, reaching its all-time high of $90-
3/4 per share on 8/23/00. As the stock soared, Enron's insiders continued to unload, selling off 1.2
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