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

337. On 7/25/01, Bloomberg News reported on Enron's Analyst Conference in New York:
ENRON'S SKILLING VOWS TO MEET OR BEAT PROFIT PROJECTIONS
Enron Corp. will meet or beat its profit projections this year and next, Chief
Executive Jeffrey Skilling said, criticizing analysts who've recently lowered their
forecasts for the largest energy trader.
Enron said July 12 that it expects to make $1.80 a share this year and $2.15
in 2002.
"We will hit those numbers, and we will beat those numbers," Skilling told
a meeting of analysts and investors in New York.
* * *
Analysts have also cited concern about unpaid power bills by Enron
customers in California and India, and losses by Enron's broadband trading unit,
which may hurt Enron's profits.
"All of these are bunk," Skilling said. "These are not issues for this stock."
* * *
The refusal of a state government in India to pay $64 million in power bills
is not going to hurt Enron's earnings, Skilling said.
"In India, we have government guarantees on the performance of our
contract," Skilling said. "We're convinced we'll be paid in full" for the $875
million the company has invested so far, plus unpaid power bills.
338. On 7/26/01, Lehman Brothers issued a report on Enron. It rated Enron a "Strong
Buy" and increased Enron's forecasted 01 and 02 EPS to $1.82 and $2.18 while forecasting a 17%
five-year EPS growth rate for Enron. It also stated:
• Wholesale Continues To Knock The Cover Off The Ball. Retail Earnings
Showing Acceleration As Backlog Expands 89% Yr/Yr And 22% Q/Q.
* * *
• ... In Our View, Stock Has Minimal Risk ....
Wholesale Reports Another Strong Quarter: Wholesale EBIT grew 93% versus 2Q
2000. Operations continue to hit on all cylinders....
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