Chapter 575: Enron incident begins
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"As early as the beginning of 2001, I pointed out in a subsequent interview with "New Finance": Enron's business looks brilliant, but in fact it doesn't make much money, and no one can tell how Enron is. Profitable."
"Enron's profitability was 5% in 2000, and it fell below 2% by the beginning of 2001. For investors, the return on investment was only about 7%."
"This shows what?"
"It shows that Enron's profitability simply does not match its market value of hundreds of billions of dollars."
"Anran Company has jurisdiction over the Enron Natural Gas Pipeline Group, Enron Investment Company, Enron Energy Service Company, Enron International Company, Enron Oil and Gas Company, Enron Renewable Energy Company, Enron Capital and Trading Resources Company. These seven main branch companies are completely Make it one of the largest integrated natural gas and power companies in the world."
"In North America, it is the number one wholesale distributor of natural gas and electricity."
"But... the annual return on investment is only about 7%, don't you think it's ridiculous?"
At this moment, NBC, the five major public television network in North America, is broadcasting a financial program, and the guest speaker of this issue is Jim Cheos.
Jim Cheos, the owner of an investment bank on Wall Street.
He was also the first to question Enron's return on investment!
Once upon a time, no one believed his remarks.
"believe him?"
"How do we trust him?"
"In contrast, as the largest wholesale distributor of natural gas and electricity in North America, Enron's consistently good reputation is worthy of everyone's belief. On the other hand, Jim Cheos, he is a Wall Street speculator. Of course we believe in Enron more!"
"People on Wall Street are not to be trusted!"
"The five major Wall Street investment banks, including Beresden, Lehman Brothers, and Merrill Lynch, have not issued any remarks questioning Enron. What is Jim Cheos?"
"Jim Cheos, a grandstanding, ridiculous guy."
......
This is the opinion of the vast majority of stockholders and investors at the beginning of 2001.
They didn't believe Jim Cheos at all.
Enron Energy, one of the largest energy, goods and services companies in North America, has a market value of more than 100 billion U.S. dollars. It was recently listed as the 7th "Fortune 500 Companies" by Fortune magazine. With such a big name, it is naturally easier to win the people's trust.
but!
As of August 2001, they had to...re-examine Jim Cheos’s remarks.
Enron's stock price fell, very serious!
At the beginning of 2001, Enron's stock price was $83 per share;
In August 2001, Enron’s stock price was $42 per share;
In just eight months, Enron's stock price has been cut in half, losing half of its market value!
"Damn it!"
A senior free investor screamed frantically: "The stock price has been cut in half, and Enron said it is a normal event to the outside world?!"
"Who is this fooling?"
Up to now, the people who have raised doubts about Enron are not only the first Jim Cheos, but thousands and tens of thousands of investors.
Moreover, the number of people who questioned is still growing rapidly!
The spokesperson of PricewaterhouseCoopers, the world's four largest accounting firms, first said:
"Faced with more and more doubts, I suggest that the relevant departments quickly intervene. When necessary, I am willing to help from PwC."
PricewaterhouseCoopers has spoken, so the other three of the world's four largest accounting firms are naturally not willing to be lonely.
KPMG: "We are willing to accept the task at the lowest price and start a thorough investigation of Enron's finances!"
Deloitte: "The stock price is cut down, Enron must have a problem!"
Ernst & Young: "It is recommended to step in immediately!"
......
The influence of the world's four largest accounting firms is undoubtedly quite amazing!
This is not~
More and more investors have joined the ranks of questioning Enron.
Under the severe situation, Jeffrey Skilling, then CEO of Enron, immediately held a press conference and declared at the meeting: “Many people say Enron is sick. I will formally use Enron CEO’s name. Promise everyone, Enron is fine!"
"I also advise some people again, um, yes, I'm talking about Jim Cheos of Wall Street..."
"He has been madly targeting our Enron Company in interviews with the media more than once. What is his intention?"
"Does he have detailed data?"
"Does he know the financial report expenditures of Enron's subsidiaries?"
"he knows......"
"He doesn't know anything, so I just ask, why does he question again and again?!"
"My Enron Legal Department has entrusted the Mitchell Law Firm to formally submit an application to the Houston District Court to formally initiate a lawsuit against Jim Cheos, who has repeatedly spread false statements."
Jeffrey Skilling, CEO of Enron, spoke sonorously.
The shot is also unambiguous.
He directly took Jim Cheos to court.
......
Followed by.
As an influential Arthur Andersen accounting firm in North America, it has also stepped forward.
As the final reviewer of Enron's financial issues, Arthur Andersen accounting firm ~www.wuxiaspot.com~ is naturally on the side of Enron, and its spearhead is directed at the four major accounting firms in the world.
"KPMG, PricewaterhouseCoopers, Deloitte and Ernst & Young... deceive people too much!"
"As the world's largest accounting firm, they should uphold a fair, rigorous, and transparent style of doing things, but the reality is that they have made false statements again and again without knowing the specific circumstances."
"To be honest, I am disappointed!"
"KPMG, PricewaterhouseCoopers, Deloitte, and Ernst & Young, as the world's largest accounting firms, have made such rumors, which is really disappointing~"
The bar is up!
The overall strength and influence of Arthur Andersen Accounting Firm is naturally inferior to the Big Four accounting firms, but in North America, its strength is not bad.
There are many of the Fortune 500 companies in the United States, and the final audit of their financial affairs is undertaken by Arthur Andersen Accounting Firm.
It has the confidence to beat the four major accounting firms!
......
August 10.
Because of more and more doubts from the outside world, relevant departments in the United States quickly set up a task force to intervene in the investigation of Enron.
"Bloomberg", "New Finance", "Fortune"... a series of well-known financial media in the United States all chose to follow up reports.
A market value of hundreds of billions of dollars;
Ranked 7th among Fortune 500 companies in the United States;
One of the largest North American energy, goods and service companies in North America;
No matter which title, many people are very concerned about it.
Especially those investors who hold shares of Enron Company are very concerned, after all, this is about their money!
"" The first update is sent.
