Cendant Corporation (NYSE:CD) Message Board

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Non-Tech : Cendant Corporation (NYSE:CD)

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To: esecurities(tm) who wrote (164)	4/16/1998 10:44:00 AM
From: Todd D. Wiener	Read Replies (1) of 3627

I was thinking of shorting or buying some puts upon the open, in order to protect my long position. However, I'm not going to play the market makers' game, wherein the bid/ask spread is $2. This situation looks like a classic shoot first, ask questions later. I could accept a 30% haircut, but a 50% drop is a severe overreaction. The next 2 days should be weak, followed by a possible dead-cat bounce next week. I have a feeling that this stock will experience a double-bottom at some point in the future, so any folks interested in buying in the high teens might consider waiting a few weeks. CD is trading at about 16 times the new 1998 estimates. This is cheap, even considering the announcement. All of the insiders are going to have to prove that they knew nothing when all of the insider selling was occurring early this year. I'm not going to sell at this quote, because I have to assume that the long-term fundamentals are still good. Unless CUC International's membership services business is a total fraud, the stock is underpriced. Todd

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