CAUGHT OFF BALANCE: THREE OTHER COMPANIES WHICH MIGHT BE IN TROUBLE LIKE ENRON

Fortune Magazine ^ | 13 January 2002

[MeneMeneTekelUpharsin]

The nation is divided up into three major electrical grids with an interconnect between them that is DC power (AC to DC and back to AC to pass through). One sector is the eastern sector, the other is ERCOT, and the last is the western sector. Each sector has independent power plants that sell power to the grid, so to speak. With deregulation (Texas as of Jan. 1, 2002), local utility companies can now buy power from whom they please among the producers. Should make for interesting reading for a while.

The point of interest about this story from Fortune is that Calpine (CPN) is not mentioned. CPN is a major independent power producer whose stock has tanked recently. Also, Mirant is not mentioned and its stock has dropped precipitously like many other independent power producers who did/don't do business like Enron.

If Calpine were like Enron, most assuredly this article would have mentioned such. The Street.com articles disparaging Calpine leaves room for the opinion of possible coordination with short-sellers and the Feds ought to check into that.

Any thoughts from the financial gurus on Calpine and its prospects? Also, regarding dividends, does anyone know about the company Ekchor Motorcycles (EKC)? It is based in Hong Kong...any FR members in Asia could tell me about this firm?

[First_Salute]

Bump.

[habs4ever]

The interest coverage ratio they extol isn't as valid as using the duPont analysis to get a clearer picture of a companies underlying financial health.Its a one time snapshot, versus a broader examination of the busiess itself.Plus, most info is dated by 3mos anyway, and using other criteria like the current ratio are typical of the unsophistication of most financial publications, including fortune.If you have a crappy business with a low internal rate of cash flow, well, all the cash in the world won't protect you, and you'll burn through it.

[Roger_W_Isom]

I'm Surprised the article didn't mention Disney and ABC.... Given the TRUELY HORRIBLE ratings disaster at ABC over their fall Lineup certain auditors MIGHT find it WISE to take a SECOND LOOK there to see just how stable that company is FOLKS!!!

[Ms. AntiFeminazi]

Or how about CNN/AOL/Time-Warner?

[OldFriend]

AOL-Time Warner isn't doing so well either these days!!! Of course, certain folks do get bailed out......such as Donald Trump when he owed more than his buildings were worth..but then I guess ENRON looked like a good bet to tarnish the President so it was allowed to tank. Something stinks to high heaven with this ENRON deal. We may never know, but I'll bet Alan Greenspan knows.

[MeneMeneTekelUpharsin]

The politics of power.

[RayChuang88]

I think Ford will likely survive, because once they clean out the overcapacity, the company has a very good lineup of vehicles they can sell. Ford's decision some years ago to make sure the cars they sell in Europe can actually meet NHTSA safety standards could be a huge benefit to the company. For example, Ford could easily drop the Taurus/Sable models and start producing and selling the second-generation Mondeo model sold in Europe here in the USA (the Mondeo has gotten considerable praise in Europe). This policy has already been proven out by the enormous success of the Focus subcompact line here the USA (the USA version differs only from the European version in a relatively minor fashion).

Because Ford also has access to the technology developed by Mazda in Japan, it means Ford does have considerable expertise in building small vehicles. Also, Ford's excellent F-Series of pickup trucks are still very popular.

[Roger_W_Isom]

That could very well be even MORE FUN!!! ROFL CNN/ TIME -WARNER.... AOL... TThat would TRUELY be fun!!! Because it would take Ted "THE RED" down the tubes as WELL!!!! I wouldn't miss THAT collapse for the WORLD!!! ROFLMAO :-))))

[Roger_W_Isom]

Another company to be leary of these days would be FIRESTONE because of that HORRENDOUS safety record of their tires on Ford Vehicles.....

[RickyJ]

Folks; Microsoft has 50 Billion in Cash, and short/long term investments, and ZERO Debt.

They will NEVER pay a dividend, and there is no safer place to put your money, regardless of the Feds.

Lindows is coming out soon despite Microcraps best efforts to stop it.

[A CA Guy]

Sears and JC Penny can't be far behind either.

[Dog Gone]

Ford used to be a good company. Then William Clay Ford took over as CEO and began spouting his liberal utopian crap. I got out of the stock at $45. What's it trading at now, about $15?

One rule of investing is to find out who runs the company. If it's a utopian, run. They don't have a clue.

[meenie]

The Omaha World-Herald has a story of a local company that is going belly up with last year sales of nine billion. The kicker in the story is that Arthur Anderson is their accounting firm and is accused of concealing the financial conditions of this company.

It looks like we have accounting and auditing firms misleading the public. The tip of the iceberg is all we see at the present time. I served as a broker for a time and got out of the business when the various scams became apparent to me.

[McGavin999]

From what I've heard Enron's problem is not with their energy divisions, it was because of foolish forays into broadband and (of all things) water.

[gaspar]

Correct. The blind stupidity of Exodus Corporation executives and the bankruptcy of a potentially significant business is a perfect example.

[MARTIAL MONK]

Hey Roger, I just read yoour profile and I see you caught me. I'm from Arizona but the last time I was in your part of the country I visited the local attractions. When no one was looking I stole the Wind River Gorge. Yep, swiped it clean as a whistle. All I left was a big hole in the ground. I've got it hidden up in a little corner of the Grand Canyon and I want a ransom. Since you are the first to notice I guess you'll have to pay. I want three Delicious Apples and a can of salmon and I'll give it back.

[Tripleplay]

Also, bring back J. Nasser! Social engineering is the ticket! Eliminate white people from management and Ford will really soar!