ENE: Adjust Historical EPS As Per Restatements; Lower 4Q & 2002 Ests. * We adjust Enron's historical EPS for the restatements filed in their 8K published on November 8th. * We revise our stand-alone 2002 EPS estimates to $1.50 from $2.15. We think this could prove conservative, but await further data on Enron's ongoing performance in their energy trading & marketing business. * Enron is currently trading at a relatively large 20% discount to their implied merger value of $12.40. We think this spread could contract as certainty improves over accounting issues, stand-alone earnings power, and the scope of hurdles to merger completion. <<ENE EPS adjustments 11-14-01.pdf>> <<ENE EPS adjustments 11-14-01.doc>>
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ENE: Adjust Historical EPS As Per Restatements; Lower 4Q & 2002 Ests.