Enron used to be one of the largest energy, goods and services companies in the world. From 1997 to 2000, Enron was listed on the Fortune 500 list of American enterprises for many times, and ranked at the top of the list.
At its peak, it once ranked the seventh among the top 500 American enterprises, with a market value of nearly 100 billion US dollars. It is 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 whole state of Texas, there are countless employees working for Enron!
However
"There are unexpected events in the sky, and people have misfortunes and blessings all the time."
Since the beginning of 2001, influenced by the international environment, Enron's share price has been declining.
In August 2001, its stock price was only 42 US dollars;
You know, a few months ago, Enron's stock price was $80 a share;
The stock price has fallen very seriously.
At this time of Enron's serious crisis, Jim cheos, a senior investor on Wall Street, stands up again and gives Enron a huge blow!
"As early as the beginning of 2001, I publicly doubted Enron's profit model," said Jim cheos
"Although Enron's business looks brilliant, it can't make any money, and no one can tell how Enron makes money. According to my long-term analysis data, Enron's profit rate was 5% in 2000, and dropped to below 2% in early 2001. For investors, the return on investment is only about 7%
"With a market value of nearly 100 billion US dollars, that's it?"
"This performance does not match the a + rating given by S & P!"
Of course, at the beginning of 2001, his words were despised by many people, even ridiculed him face to face, thinking that CEOs was just a clown.
However, Enron's stock price, which has been falling all the way, has proved cheos's view.
In August 2001, Enron's situation was still so severe
What about now, a few months later?
.......
"Damn Enron!"
"They should go to hell and be taken away by Satan!"
"Standard & Poor's, Moody's Investor Services and Fitch Ratings, known as the world's three major credit rating agencies, is this the performance now?"
"A + credit rating represents a strong ability to repay debts, but it is slightly vulnerable to adverse factors of external environment and changes in economic conditions. It is second only to AA and AAA credit rating. But now? Enron company is going bankrupt, and it has the ability to pay back a fart! "
"Enron? Don't you think the city of Houston and the state of Texas will support Enron? "
"Where are we going to die now?"
Countless individuals and enterprises holding Enron shares and investment bonds are going crazy now!
Why?
Now Enron is on the brink of a precipice.
In the middle of October 2001, Enron released its financial statements for the third quarter of 2001, announcing that the total loss of the company reached 618 million US dollars, or 1.11 US dollars per share. At the same time, it was disclosed for the first time that due to the improper operation of chief financial officer Andrew Fastow and the partnership, the assets of shareholders of the company decreased by 1.2 billion US dollars;
In early November 2001, Enron mortgaged part of the company's assets and secured a $1 billion credit line from J.P. Morgan and Solomon Smith Barney.
However, Merrill Lynch and S & P still lowered their rating on Enron again.
Enron used to have a + rating.
Today... Only B level!
All the way from a + credit rating to a, BBB, BB, including (+) and (-), to now only B.
The B level of the S & P index represents Enron as an enterprise, which has a high probability of default, and the issuer is still able to repay its debts. However, adverse commercial, financial and economic conditions may weaken the ability and willingness of the issuer to repay its debts.
Enron's credit rating was lowered by Merrill Lynch and S & P. the most direct reflection is the sharp decline of its stock price.
ââ15 dollars!
Yes, today, Enron's share price is only $15 a 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 much lower again.
Countless investors are going mad.
You said, if you also hold Enron's shares and investment bonds and watch Enron's share price fall all the way, would you like to cry without tears?
Even some people are facing bankruptcy crisis frequently!
Because these are too greedy, they firmly believe that Enron can survive the crisis, but now the iron facts, give them a loud slap in the face.
.......
Gale capital (Los Angeles) branch.
At the moment, as the largest shareholder and chairman of gale capital, Zhuke personally visited gale capital (Los Angeles) branch.
"Boss, thanks to your forward-looking vision, we have a long layout. Since November, we have made a lot of money from Enron," said Hughes tarrell, President of the branch
"Do you have any specific data?"
Asked Zucker.
Smell speech, branch president tarrell quickly nodded, "yes, I'll give it to you right away."
Soon, a detailed report data was submitted to Zhuke.
ââ$1.6 billion!
Yes, so far, gale capital has successfully made $1.6 billion from Enron, an energy giant!
Don't be too little~
You know, the people who participate in this partition feast are not only Fengfeng capital in the name of Zucker, but also hundreds of investment banks on Wall Street, including the five major investment banks on Wall Street.
"Not bad, not bad, not bad!"
Zhuke is extremely satisfied with the current profit data.
Since April of this year, gale capital under Zhuke's name has started the layout and investigation of Enron. It has not only used a lot of money, but also used a lot of means. Only in this way can it take food from the five major investment banks on Wall Street!
Ding Ding Ding~
At this time, a phone call came.
Caller: Andy cherop, CEO of gale capital!
"Boss, big news!"
"We just learned that the work of the special investigation team has made progress again..."
"The spokesman of Enron's external department admitted that the company had made false accounts and falsely reported the figures, which was astonishing! Since 1997, Enron has falsely reported a profit of as much as $600 million. "
Andi cherope was very excited and eager to tell Zhuke the news.
For a moment, Zhuke and tarrell, the president of the branch, were also extremely excited.
âyesï¼â
Tarrell waved his fist fiercely and said excitedly: "just the data given by the special investigation team, we can at least record hundreds of millions of dollars again in the next few days!"
Zhu Keqiang held back his excitement and said, "Enron is almost finished. The real feast of partition is coming!"
That's right!
As the special investigation team constantly disclosed one fact after another, the situation is more and more unfavorable to Enron, but for investment banks such as gale capital, it is absolutely good news.
Who doesn't want to make money?!
"Is the false profit only $600 million?"
"I don't believe it ~"
"I believe in the real data, it's definitely more than 600 million dollars," he said confidently
At the moment, Zhuke stood up and went to the huge French window, overlooking.
I feel very comfortable.
As a traverser, Zucker knows Enron better than many people, including the so-called financial experts.
Enron's share price is now $15 per share
However, Zhuke knows that at the end of November, Enron's share price dropped to $0.26, and its market value dropped from nearly $100 billion at the peak to $200 million.
The feast of partition is coming!
"The first watch" is presented.