FYI. update on movie trading business. 
I change my mind. At first I though that we should focus on customers who want to diversify their unique risks. But now I feel that, at this moment, the "make-sense" people are not easy to find in reality. (Even myself who own Enron stock, not Dynergy.) There are more risk takers than risk diversified people. So I think speculators might be our customers in this movie business.
-chonawee


---------------------- Forwarded by Chonawee Supatgiat/Corp/Enron on 05/02/2001 11:23 AM ---------------------------


Chonawee Supatgiat
05/02/2001 11:23 AM
To:	Russell Woody/Enron Communications@ENRON COMMUNICATIONS, Key Kasravi/Enron Communications@Enron Communications, Richard DiMichele/Enron Communications@Enron Communications, Martin Lin/Contractor/Enron Communications@Enron Communications, Greg Woulfe/Enron Communications@Enron Communications
cc:	Stinson Gibner/HOU/ECT@ECT 

Subject:	Re: HSX volume info   

Thanks, Key, for the volume information. Because HSX is a fake market, I think this indicates that there are lots of speculators out there in the movie trading business. So I believe "speculators" might be one of our major customers. (Like stock markets, a (big?) part of brokers' profits are from speculators' commissions.)

I know the "diversification" is a good thing to do but may be hard to do in reality. Even for myself, who is working for Enron and owning Enron shares, I would not buy Dynergy stocks even if it makes sense to do that for reducing my unique risk...  In stead, I buy Enron shares, so I am a speculator (risk taker) myself... 

Regarding moral-hazzard/information-asymmetry issue in the movie business, the market price will reflect this risk. In addition, I think we can 1) try not taking any position or 2) have a diversified portfolio of movies. 

If we operate as a broker and maintain balanced books, one question is how much we have to invest to create these markets... Thin margin can help generate volume.

-Chonawee







From:	Russell Woody@ENRON COMMUNICATIONS on 05/01/2001 02:13 PM
To:	Key Kasravi/Enron Communications@Enron Communications
cc:	Chonawee Supatgiat/Corp/Enron@ENRON, Martin Lin/Contractor/Enron Communications@Enron Communications, Richard DiMichele/Enron Communications@Enron Communications 

Subject:	Re: HSX volume info   

Key - Interesting information.  Personally, I am blown away by the large membership HSX claims.   Even if they have a decent percentage of these numbers, that would suggest that movies and the related industry is becoming sport as well as entertainment.  I guess the fact that you can already find on the front page of your newspaper such information as weekend box office receipts suggests that a lot of people really are interested in movies beyond the content.  Could bode well for us...

Rus Woody
Enron Broadband Services
Global Bandwidth Risk Management
Phone (713) 853-4312
Cell (713) 410-2286
Fax (713) 646-8795




	Key Kasravi 05/01/01 01:22 PM 	   To: Richard DiMichele/Enron Communications@Enron Communications, Chonawee Supatgiat/Corp/Enron@ENRON, Martin Lin/Contractor/Enron Communications@Enron Communications, Russell Woody/Enron Communications@Enron Communications  cc:   Subject: HSX volume info	


FYI,

Spoke VP sales from HSX:  I posed as being interested in advertising on the site (keep in mind for perspective on info)

750k registered users
80k active users at any time
40k trades per day
each user visit averages about 37 minutes with 41 page turns
HSX.Com is primarily a B2C platform
Primary visitors - young people interested in the entertainment aspect and virtual stock exchange competition aspects of the site

But - 

HSXresearch.Com is a B2B site designated to provide information to industry players  
The concept behind the B2B site is provide industry players with insight into consumer perception:  exert from press release:

     HSX Research's primary application, HSX Trader Insight, consists of six dynamic reports that provide clients with long-lead estimates of audience awareness, intention and box office projecting for all film projects. Future applications, such as advertising effectiveness analysis, product placement analysis, entertainment product indexing and other value-added market research services will be available later this year.   	

It does make me think that if you visit the B2B site, you are likely to visit the trading site and be aware of it if nothing else.  And the volume of trades is a lot higher than I had thought => although it's just for fun.


regards,

Key

________________________
Key Kasravi
Office -713-853-5506
Cell-713-446-4452
Fax-713-646-8551








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