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  • Atricle Dump - Enron: Skilling & Lay: How Much Blame?

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    uture, I have calculated the underlying intrinsic share price as $US4.54. This calculating is based on normal traditional discounted cash flow methodology.

    A share price of $US4.54 is certainly different to a share price of $US55 to $US90. Basically t

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    The question about how much blame is not about determining any verdict of guilty or not guilty as the courts will do this. It really relates to shareholders, employees, community and country losses suffered as a result of the collapse.

    In the end various parties have and may still be found to have a portion of the blame and shareholders and employees who have suffered most are certainly keen to see final outcomes to this situation. However one of the major contributors may never be accounted for; this being the market itself. The market (stock market) is made up of many components and this certainly includes investors.

    When we ask how much blame we are really looking at dollars lost. During the 2000 year the share price reached $US90 plus, in March/April 2001 period it was around $US55 to $US60. On 19th December 2001 the price was $US 0.19, that is 19 cents before Enron went into liquidation.

    Using the Reported Annual results for the year ended 31st December 2000 and assuming no changes into the future, I have calculated the underlying intrinsic share price as $US4.54. This calculating is based on normal traditional discounted cash flow methodology.

    A share price of $US4.54 is certainly different to a share price of $US55 to $US90. Basically th

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    ous parties have and may still be found to have a portion of the blame and shareholders and employees who have suffered most are certainly keen to see final outcomes to this situation. However one of the major contributors may never be accounted for; this being the market itself. The market (stock market) is made up of many components and this certainly includes investors.

    When we ask how much blame we are really looking at dollars lost. During the 2000 year the share price reached $US90 plus, in March/April 2001 period it was around $US55 to $US60. On 19th December 2001 the price was $US 0.19, that is 19 cents before Enron went into liquidation.

    Using the Reported Annual results for the year ended 31st December 2000 and assuming no changes into the future, I have calculated the underlying intrinsic share price as $US4.54. This calculating is based on normal traditional discounted cash flow methodology.

    A share price of $US4.54 is certainly different to a share price of $US55 to $US90. Basically t

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    ing the market itself. The market (stock market) is made up of many components and this certainly includes investors.

    When we ask how much blame we are really looking at dollars lost. During the 2000 year the share price reached $US90 plus, in March/April 2001 period it was around $US55 to $US60. On 19th December 2001 the price was $US 0.19, that is 19 cents before Enron went into liquidation.

    Using the Reported Annual results for the year ended 31st December 2000 and assuming no changes into the future, I have calculated the underlying intrinsic share price as $US4.54. This calculating is based on normal traditional discounted cash flow methodology.

    A share price of $US4.54 is certainly different to a share price of $US55 to $US90. Basically t

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    pril 2001 period it was around $US55 to $US60. On 19th December 2001 the price was $US 0.19, that is 19 cents before Enron went into liquidation.

    Using the Reported Annual results for the year ended 31st December 2000 and assuming no changes into the future, I have calculated the underlying intrinsic share price as $US4.54. This calculating is based on normal traditional discounted cash flow methodology.

    A share price of $US4.54 is certainly different to a share price of $US55 to $US90. Basically t

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    uture, I have calculated the underlying intrinsic share price as $US4.54. This calculating is based on normal traditional discounted cash flow methodology.

    A share price of $US4.54 is certainly different to a share price of $US55 to $US90. Basically the market over valued ENRON by more than 90%. There are a number of stocks are way over priced by the market and there are also stocks that are substantially under priced by the market. Generally over a period of time share prices of stocks that are substantially over priced fall back to a level more closely aligned to their underlying intrinsic value (or lower) where value is calculated on a trend analysis of recent past financial results. Similarly over a period of time share prices of stocks that are substantially under priced increase to a level more closely aligned to their underlying intrinsic value (or higher).

    Is it any surprise that the share price of Enron was destined to decline sharply? A rapid decline in share price can lead to a lack of confidence in the stock and further add to the decline in price.

    Downturn in confidence has been put up as a defense factor in the recent Skilling court case. A downturn in confidence can be triggered by a downturn in share price. The decline in a share

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