--- In FairfieldLife@yahoogroups.com, "larry.potter" <[EMAIL PROTECTED]> wrote: > > --- In FairfieldLife@yahoogroups.com, "shempmcgurk" > <shempmcgurk@> wrote: > > > > --- In FairfieldLife@yahoogroups.com, "larry.potter" > > <larry.potter@> wrote: > > > > > > http://biz.yahoo.com/ap/061023/enron_skilling.html?.v=26 > > > > > > ouch, being greedy and a thief is a disastrous combination. > > > poor guy.. > > > > > > > > > What I find most interesting about the Enron story is someone > named > > John Chanos who is a Wall Street Trader who was one of the first > to > > see that Enron was built on fantasy. He ended up making 10s of > > millions because he shorted Enron stock (and advised his clients > to > > do the same) when it was at its peak. > > > > But Chanos did it the old-fashioned way: he actually studied > Enron's > > financial statements. He saw anomalies and instead of like 99% of > > everyone else who was trading Enron stock and were euphoric and on > > the bandwagon about its success, he rolled up his sleeves and went > > into all the little details, found it to be a house of cards, and > > sold short. > > > > Which begs the question: if Chanos could see the truth, why > couldn't > > the others? Were they too lazy? > > while they were making money they didn't care for the details, > the truth just got in the way. > (also many working guys don't know how to read these > financial statements. Enron, as you know, was big corp and I'm sure > it was not an easy task to figure out what's going on.) >
...which is why if you can't stand the heat, get out of the kitchen. Way, way too many people got on the Enron bandwagon when it was a shaky ship to begin with. But when you're making money, everyone puts their rationality out to pasture. For example, Google is currently at $480 a share. But there's no way that their price/earnings ratio both now or in the future can justify that (unless they keep and on and on and on increasing profits). But everyone is on the bandwagon because it is such a great company and such a sexy stock. Well, at some point, down is going to be the only direction it can go in. To subscribe, send a message to: [EMAIL PROTECTED] Or go to: http://groups.yahoo.com/group/FairfieldLife/ and click 'Join This Group!' Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/FairfieldLife/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/FairfieldLife/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
