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

CEO Skilling Resigns; Chmn Lay Takes Back CEO & Pres Roles. No Other "Shoes
to Drop." Retain Strong Buy
* * *
Late yesterday, ENE announced that its CEO, Mr. Jeff Skilling resigned for personal
reasons....
Our analysis and information indicates that there are no changes or disclosure
items inherent in the departure....
Our estimates for ENE are $1.80 in '01 and $2.25 in '02.
346. On 8/14/01, Bank America issued a report on Enron which continued to rate Enron
a "Strong Buy" and forecast 01 and 02 EPS of $1.85 and $2.15. It also stated:
• ENE announced today that Jeff Skilling, President and CEO, has resigned for
personal reasons.
* * *
• ... We would use any weakness as a buying opportunity as the stock is trading
far off its highs ....
• While we realize that this high level departure follows those of other visible
members of management in the last 18 months, we are highly confident in the
abilities of Ken Lay and the existing management team.
347. On 8/15/01, Lehman Brothers issued a report on Enron. The report continued to rate
Enron a "Strong Buy" and continued to forecast 01 and 02 EPS of $1.82 and $2.18 and a 20% five-
year EPS growth rate for Enron. It also stated:
• We Don't Expect Any Falloff In Operating Performance Or Unusual
Charges To Follow Skilling's Resignation.
• We Would Be A Buyer Of The Stock On Any Significant Weakness ....
Rating Remains Unchanged. We Continue To Think At Minimum
Investors Will Collect The 20% Growth Rate Over The Next 12 Months.
348. On 8/15/01, JP Morgan issued a report on Enron. It continued to rate Enron a "Buy"
and continued to forecast 01 and 02 EPS of $1.82 and $2.17 for Enron. It also stated:
- 285 -