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Technology Stocks : The Learning Company (TLC) -- Ignore unavailable to you. Want to Upgrade?

To: Bulldozer who wrote (4395)	4/5/1998 3:28:00 AM
From: Obewon	Read Replies (1) \| Respond to of 6318

CUC has successfully been building up itself by acquiring companies that are cash cows. Cendant is no exception to this. It's cash flow from operations is as good if not much better than TLC's. Unfortunately, much of its cash flow is absorbed by CUC for other corporate purposes (such as non-software acquisitions like American Bankers Insurance). In this, it is crippled even more than TLC (which must finance its debt and conserve cash against the possibility that it won't be able to roll over the debt in 1999.) Because Cendant is not the most strategic part of CUC (though it is important since CUC gets alot of customer info from Cendant's rebate program), it can't plow its entire cash flow into itself. Bulldozer is correct in pointing out that the Street is more interested in the gaming side of Cendant since it is so much bigger and it drives the earnings. OB