Responding to persistent rumors over the Thanksgiving weekend ofa possible profit warning, Enron COO Jeff Skilling last week deniedproblems with earnings for any of the myriad energy andcommunications businesses for North America’s largest buyer andseller of natural gas and electricity.

“All of our businesses are performing extremely well and we arevery comfortable with consensus analyst earnings estimates of $0.35per share in the fourth quarter of 2000, and $1.65 for the fullyear 2001,” said Skilling in a prepared statement. FirstCall/Thomson Financial analysts had forecast earnings per share of$.03 in the fourth quarter and $1.66 in 2001.

The day before Thanksgiving, Enron spokesman Mark Palmer saidthat the company decided to uncharacteristically respond to rumorsafter hearing “persistent” talk that the company was going to “putout a profit warning.” Palmer said he did not know how the rumorstarted. He said the rumor did not start in Internet chat rooms,but rather, the company began getting telephone calls fromanalysts.

“We’ve never said anything but that we’re comfortable withanalysts’ expectations,” Palmer said.

Last week CEO Ken Lay said that he was aware of criticism thatthe Houston-based company appeared to lack any focus because it wasmoving in so many directions. He called the concern “legitimate,”and said “it’s something we talk about internally. We need to becareful we don’t take on too many new markets at one time. We needto prove that we can do what we say we’re going to do,” such as thebroadband market.

In the Internet chat rooms over the weekend, Enron shareholdersseemed delighted with the rise and short-term fall of the stock,with one sharing the news that he had traded in some of his child’scollege fund to obtain more Enron shares while the price was lower.Some shareholders said they expected the fourth quarter earnings torise even higher, then fall back in 2001.

Shares of Enron stock rose $2.19 to $77.75 in trading on the NewYork Stock Exchange last Friday in abbreviated trading. They hadfallen to a low of $75.54 on Wednesday, down from $80 a weekearlier and a high of $90 on Aug. 23. At close Monday, the stockhad risen to $79.36.

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