Invest in Enron?

I’ve been hearing more about Enron these days. What’s up with them?

  1. Are all the bad guys out of this company?
  2. Have new people been hired to rebuild Enron?
  3. Do they have an established stock? I found the ones below, but they don’t look like legit ticker symbols. I don’t know what they are.

ECTPQ.PK
ECSPQ.PK
EONNQ.PK
ENRPQ.PK

I ask because, this was at one time an established company before the financial scandal. I figure if the scandal has been removed, why not invest in them?

Enron was essentially nothing but a private commodities market for energy; as such, they owned no real assets, other than the goodwill and cooperation (or co-participation with their clients). The only thing Enron “owns” are contracts with various customers, mostly utiility companies, in which they get a cut of profits. Given the highly public nature of their duplicities and outright scams it seems unlikely that any future customers are likely to put their trust in that name.

If you want to invest in a rock-bottom company you’d be better off with MCI, Tyco, or any number of other companies that at least provided an actual product. People with Enron stock right now are just hoping to get back pennies on the dollar via bankruptcy proceedings.

Stranger

The .PK means that they are listed on the pink sheets (not really true anymore, but the name remains), which is a pretty risky market to invest in. Here is what the SEC has to say about Pink Sheet stocks.

Enron made enough money during its heyday to buy up a lot of domestic and foreign utility plants and such. So it wasn’t entirely an asset-less company.

As to the ethics of the current people running Enron, I strongly urge you to read this and judge for yourself.