Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (13171)	10/3/2001 7:33:18 PM
From: Bob Rudd	Respond to of 78517

<<CD's financial clout, their travel industry exposure, and AVIS's strong #2 position (imo) are an advantage over DTG. Of course, DTG is the purer play.>>Actually, Paul, I'm not adding CD because of the rental car exposure, but in spite of it. CD has a mix of businesses that while strategically coherent also hedge various phases of the business cycle. Travel [Avis, Hotels[franchise fees not ownership], travel services]& Realtors [Franchise fees, again] are geared to the business cycle, but the fees are lot more stable than airline or builder earnings. The mortgage refi biz blooms when times are tough and rates reflect it [like now] and the Jackson Hewitt biz is neutral to the cycle with some gearing to the complexity of tax system[Bull market forever]. This combination produces more stable cash flows and greater visibility than the reaction reflected. Going forward, I suspect that stability is going to command a premium. biz.yahoo.com As to the timing, well, volatility is the freind of the patient individual...and we sure got that in spades. There are folks waiting for the next CUC [the accounting disaster they bought], travel bears and tax loss sellers. If another travel target gets hit...event risk...you should get a great buy. The recent CC may be worth a listen...these guys are good about communicating with shareholders and the street, IMO.

To: Paul Senior who wrote (13171)	10/4/2001 6:14:22 PM
From: Madharry	Respond to of 78517

Not that these are value plays but I doubled down on UCOMA and MCLD today.