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

ankers knew that the price decline in Enron stock was triggering huge stock issuance obligations
of Enron to SPEs that had been propped up at year-end 00 via restructurings to avoid the
recognition and reporting of hundreds of millions of dollars of losses at that time. Thus, Enron
and its banks flooded the markets with extremely positive and reassuring information about the
fundamentals of Enron's business to try to support the stock, while behind the scenes the Enron
Defendants, Andersen, Vinson & Elkins and certain of Enron's bankers worked feverishly to once
again find a way to restructure several of the LJM2-related SPEs to avoid any major Enron stock
issuance which would have caused Enron's stock price to collapse and lead to the exposure and
unraveling of the scheme.
306. On 3/13/01, JP Morgan issued a report on Enron. The report rated Enron a "Buy,"
continued to forecast 01 and 02 EPS of $1.77 and $2.08 for Enron and stated:
We view yesterday's sell-off in response to a dissolved Blockbuster deal as overdone,
and see a buying opportunity at these levels. We reiterate our Buy with a $120
price target....
We believe that Enron is undervalued at these levels ....
Enron is still the delivery technology "arms dealer" to the content providers of the
world .... The deal was not terminated because the technology doesn't work ....
307. On 3/22/01, Bloomberg News reported:
Enron Corp., whose shares have fallen 17 percent in the past week on concern
the company's telecommunications business won't generate the expected profit, said
it still expects to earn $1.70 to $1.75 a share this year.
* * *
"Broadband is a core business of Enron's," spokesman Vance Meyer said.
"All of our businesses are doing very well, and we plan to hit our earnings targets,
and that includes broadband."
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