Chapter 626 Energy Giant Enron Is About to Collapse

Enron was once one of the largest energy, commodity and service companies in the world. Between 1997 and 2000, Enron was listed on Fortune Magazine's "Top 500 American Enterprises" many times, and it was among the best.

At its peak, it was ranked seventh among the top 500 American companies, with a market value of nearly 100 billion US dollars, a proper energy giant.

Since its establishment, it has always been the pride of Houston, the fourth largest city in the United States!

Including the entire state of Texas, there are countless employees working for Enron!

However......

"There are unforeseen circumstances in the sky, and disasters and blessings for people."

Since the beginning of 2001, due to the influence of the international environment, Enron's stock price has shown a downward trend and has been declining.

By August 2001, its stock price was only $42 per share;

You must know that a few months ago, Enron's stock price was $80 per single share;

The stock price has fallen sharply.

At the moment when Enron was facing a serious crisis, Jim Cheos, a veteran Wall Street investor, stood up again and gave Enron a huge blow!

"Back in early 2001, I publicly expressed doubts about Enron's profit model," said Jim Chios.

"Although Enron's business looks brilliant, ... in fact, it doesn't make any money, and no one can tell how Enron makes money. According to my long-term analysis data, Enron's profitability rate In 2000 it was 5%, and by early 2001 it fell below 2%, and for investors, the return on investment was only about 7%.”

"The market value of nearly 100 billion US dollars, that's all?"

"As far as this performance is concerned, it can't match the A+ credit rating given by Standard & Poor's at all!"

Of course, his remarks were despised by many people at the beginning of 2001, and even mocked him in person, thinking that Chios was just a grandstanding clown.

However, Enron's stock price, which has been falling all the way, proves what Cheos said.

In August 2001, Enron's form was so grim...

So what about now, a few months later?

......

"Damn Enron!"

"They should go to hell,

Taken away by Satan! "

"Standard & Poor's, Moody's Investors Service, and Fitch Ratings, the world's top three credit rating agencies, now...is that?"

"A+ credit rating means a strong ability to repay debts, but it is slightly susceptible to adverse factors from changes in the external environment and economic conditions, and is second only to AA and AAA credit ratings. But, now? Enron Corporation They are almost bankrupt, and they still have the ability to repay!"

"Enron? Didn't you say that the Houston city government and the Texas state government would support Enron?"

"Where are you going to die now?!"

Countless individuals and businesses holding Enron stock and investing in bonds are now... going crazy!

Why?

Now Enron's situation is already on the edge of a cliff.

In mid-October 2001, Enron released its financial statements for the third quarter of 2001, announcing that the company's losses totaled $618 million, or $1.11 per share. At the same time, it was revealed for the first time that the assets of the company's shareholders had shrunk by $1.2 billion due to the improper operation of CFO Andrew Fastow and the partnership;

In early November 2001, Enron mortgaged part of the company's assets and obtained J. $1 billion line of credit secured by P Morgan and Solomon Smith Barney.

However, Merrill Lynch and Standard & Poor's still downgraded Enron again.

Enron used to have an A+ credit rating.

To this day...only B grades!

All the way from A+ credit rating, down to A, BBB, BB, including (+) and (-), to now only B.

The B grade of the S&P index represents Enron as a company, which has a high possibility of default, and the issuer is still able to repay its debts, but adverse business, financial and economic conditions may weaken the issuer's ability to repay its debts and will.

Enron's credit rating was downgraded by Merrill Lynch and Standard & Poor's, and the most direct reflection of the situation was the sharp decline in the stock price.

--15 dollars!

Yes, to this day, Enron's share price is only $15 per share.

Compared with the $80/single share at the beginning of the year and the $42/single share at the beginning of August, it is again much, much lower.

Countless investors are going crazy.

You said, if you also held Enron's stocks and investment bonds, and watched Enron's stock price fall all the way, would you cry without tears?

There are even some people who are on the brink of bankruptcy!

Because these are too greedy, they firmly believe that Enron can survive the crisis, but now the ironclad fact has given them a resounding slap in the face.

......

Gale Capital (Los Angeles) branch.

At this moment, Zhu Ke, the largest shareholder and chairman of Dafeng Capital, came to Dafeng Capital (Los Angeles) branch in person.

The president of the branch, Hughes Tarrell, said: "Boss, thanks to your forward-looking vision, we have been planning for a long time. Since November, our Gale Capital has made a lot of money on Enron."

"Do you have specific data?"

asked Zucker.

Hearing this, Tariel, the president of the branch, nodded quickly, "Yes, I'll give it to you right away."

In a short time, a detailed report data was submitted to Zu Ke.

- $1.6 billion!

That's right, so far, Gale Capital has managed to make $1.6 billion from the energy giant Enron!

Don't be too little~

You must know that the people who participated in this carve-up feast are not only Dafeng Capital under the name of Zhu Ke, but hundreds of investment banks on Wall Street, more or less, including the five major investment banks on Wall Street.

"Good, good, pretty good!"

Zucker is very satisfied with the current profit data.

Since April of this year, Dafeng Capital under Zhu Ke's name has started the layout and investigation of Enron. It has used a lot of money, and it has used a lot of methods to steal food from the five major investment banks on Wall Street!

ding ding ding~

At this moment, a phone call came.

The caller - Andy Chelop, CEO of Gale Capital!

"Boss, big news!"

"We just learned that the work of the special investigation team has made progress again..."

"The spokesperson of Enron's external department admitted that the company had made false accounts, and the falsely reported figures were astounding! Since 1997, Enron has falsely reported profits of up to 600 million US dollars."

Andy Chelop was very excited and eager to tell Zucker the news.

For a time, Zucker and the branch president Tariel were also extremely excited.

"Yes!"

Tariel waved his fist fiercely, and said excitedly: "Just the data given by the special investigation team, we will be able to record at least hundreds of millions of dollars in the next few days!"

Zhu Keqiang held back his excitement and said, "Enron is almost over, the real feast of carve-up is here!"

you do not say!

As the special investigation team continued to disclose facts one after another, the situation became more and more unfavorable for Enron, but for investment banks such as Dafeng Capital, it was definitely good news.

Who doesn't want to make money? !

"Is the falsely reported profit only $600 million?"

"I don't believe~"

Zucker confidently said: "I believe the real data, definitely far more than 600 million US dollars!"

At the moment, Zucker stood up and walked to the huge floor-to-ceiling window, looking far into the distance.

I feel very comfortable.

As a traveler, Zucker knows Enron better than many people, including the so-called financial experts.

Enron's share price is now $15 per share...  

However, Zucker knew that at the end of November, Enron's stock price fell to $0.26, and its market value dropped from nearly $100 billion at its peak to $200 million.

The Divide Feast is coming!

" "The first more is sent.