CUC Int'l- Cybermarketeer? Message Board

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Technology Stocks : CUC Int'l- Cybermarketeer?

CD 4.750

+0.8%

1:45 PM EST

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To: Terry D who wrote (70)	4/22/1997 5:26:00 PM
From: Todd D. Wiener	of 243

Terry- the rebound today was very inspiring. CU was down as low as 19.25, yet rebounded to close down .125 at 20.75. The 2.5 mill shares traded are double the normal amount, so this may have been the bottom. However, unlike the irrationally exuberant DJIA (up 173 pts.-gimme a break!), CU is still undervalued. So unless the interest rate picture begins to look really positive, I don't know what is going to cause the money to trickle down. It's almost like the recent correction across the market freed up some money, and the institutions are pouring all of the cash into the S&P 100 (which is grossly overpriced). The DJIA is up over 7% in the last week; if I didn't know better (and I may not), we are now witnessing a speculative bubble/blowoff top-- whatever you want to call it, but the small stocks and midcaps need the cash inflows that the OEX is getting, or else this market is going nowhere. I'm sitting on a portfolio that is trading at about 2/3 of its growth rate. In other words, my small and midcaps are trading at about 40% the PEG (P/E:earnings growth) of the OEX. My stocks would need to more than double to match the valuation of these 100 biggest stocks. This market has been very rewarding to the brainless investor--indexing. It's gonna have to stop at some point. Sorry for the speech. Anyway, hopefully we've seen a bottom in CU. I think I might try to sell some puts and buy below 20. Who'd you speak to at CUC? Todd

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