Chapter 580

"As early as the beginning of 2001, I pointed out in an interview with new finance and economics that Enron's business looks brilliant, but in fact it can't make any money, and no one can explain how Enron makes money."

"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%."

"What does that mean?"

"It shows that Enron's profitability can't match its market value of 100 billion dollars."

"Enron's seven major subsidiaries, Enron gas pipeline group, Enron investment company, Enron energy services company, Enron international company, Enron oil and gas company, Enron renewable energy company, Enron capital and trading resources company, make Enron one of the largest comprehensive natural gas and power companies in the world."

"In North America, it is the number one wholesale seller of natural gas and electricity."

"But... The annual return on investment is only about 7%. Don't you think it's ridiculous?"

At the moment, NBC, as one of the five major public television networks in North America, is broadcasting a financial program, and the guest speaker of this issue is Jim cheos.

Jim cheos, the boss of a Wall Street investment bank.

He is also the first to question the return on investment of Enron!

Once upon a time, no one believed what he said.

"Believe him?"

"How can we trust him?"

"In contrast, Enron, as the largest natural gas and electricity wholesale seller in North America, has always had a good reputation, which is more worthy of our trust. In contrast, Jim cheos, who is a Wall Street speculator, of course, we believe in Enron more than any other company!"

"People on Wall Street, it's not worth believing!"

"Beresten, Lehman Brothers, Merrill Lynch and other five Wall Street investment banks have not made any comments questioning Enron. What is Jim cheos

"Jim cheos, a sensationalist, funny guy."

......

This is the view of the vast majority of shareholders and investors at the beginning of 2001.

They don't believe in 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 US dollars. Not long ago, Enron energy was listed as the 7th of "Fortune 500" by Fortune magazine. Such a big name naturally makes it easier to win the trust of the people.

But!

By August 2001, they had to... Re-examine what Jim cheos said.

Enron's stock price fell, very serious!

At the beginning of 2001, Enron's share price was $83;

In August 2001, Enron's share price was $42;

Just in the past eight months, Enron's share price has been cut, losing half of its market value!

"Damn it

A senior free investor, madly clamored: "the share price has been cut in half, Enron said it was a normal event?"

"Who are you fooling?"

So far, the people who question Enron are not only Jim cheos, but thousands of investors.

Moreover, the number of doubters is still growing rapidly!

A spokesman for PwC, one of the world's four largest accounting firms, took the lead in saying:

"In the face of more and more doubts, I suggest that the relevant departments should step in quickly. If necessary, PwC is willing to help."

When PwC makes a speech, the other three accounting firms, which are also the world's top four accounting firms, will not be lonely.

KPMG: "we are willing to accept the task at the lowest price and start a thorough financial investigation of Enron!"

Deloitte: the stock price has been slashed. Enron must have a problem

Ernst & Young: suggest to step in immediately

......

The influence of the world's four major accounting firms is undoubtedly quite amazing!

That's not true~

More and more investors have joined in questioning Enron.

Under the grim situation, Jeffrey Skilling, then CEO of Enron, held a press conference for the first time and declared at the meeting: "many people say that Enron is ill. In the name of CEO of Enron, I formally promise you that Enron is OK!"

"Again, I'd like to advise some people, well, yes, I'm talking about Jim cheos of Wall Street..."

"More than once, he has been in an interview with the media and madly targeted at Enron. What is his intention?"

"Does he have detailed data?"

"Does he know the reported expenses of Enron's subsidiaries?"

"He knows..."

"He doesn't know anything, so I'll ask, why does he question again and again?"

"I, the legal department of Enron, have entrusted Mitchell law firm to formally file an application to Houston district court to formally Sue Jim cheos, who has repeatedly spread false statements."

Jeffrey Skilling, CEO of Enron, has a strong voice.

It's not ambiguous.

He took Jim cheos straight to court.

......

It's not far behind.

As an influential accounting firm in North America, Andersen also stood up.

As the final auditor of Enron's financial problems, Andersen naturally stands on the side of Enron and points its spearhead at the four major accounting firms in the world.

"KPMG, PwC, Deloitte and Ernst & Young... Deceive people too much!"

"As the largest accounting firms in the world, they should uphold a fair, rigorous and transparent style of conduct, but the reality is that they have made false statements again and again without knowing the specific situation."

"To tell you the truth, I'm disappointed!"

"KPMG, PricewaterhouseCoopers, Deloitte and Ernst & young, as the largest accounting firms in the world, should have made such a rumored statement. It's really disappointing ~"

Come on!

The overall strength and influence of Andersen accounting firm is naturally less than that of the four major accounting firms, but in North America, its strength is not poor.

Among the top 500 enterprises in the United States, there are many enterprises whose final financial audit is undertaken by Andersen accounting firm.

It has the strength to meet the four major accounting firms!

......

August 10.

Because of more and more doubts from the outside world, the relevant departments of the United States quickly set up an ad hoc group to intervene in the investigation of Enron.

A series of well-known financial media in the United States have chosen to follow up and report.

A market value of 100 billion US dollars;

No. 7 of the top 500 companies in the United States;

One of the largest energy, goods and services companies in North America;

No matter which name, many people are concerned about it.

Especially those investors who hold Enron shares are extremely concerned. After all, it's about their money!

"The first watch" is presented.