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Non-Tech : Cendant Corporation (NYSE:CD) -- Ignore unavailable to you. Want to Upgrade?

To: VALUESPEC who wrote (1179)	7/21/1998 7:01:00 PM
From: jjs_ynot	Respond to of 3627

Is it possible that CD is taking on a safe haven character for money in the market. That is since it is so beaten down, it is unlikely to go down much from here; while a number of the high flyers (which might include most of the NASDAQ 100) have a lot of room to fall.

To: VALUESPEC who wrote (1179)	7/22/1998 12:30:00 AM
From: Sr K	Read Replies (1) \| Respond to of 3627

<<In a book I read by about Warren Buffet (Buffetology), it was said that the way to make really big money in investments is to invest other people's money for them and take a percentage. >> Don't know if the book told the rest of the method. You need a legal structure where you hold your interest or fee percentage as a percentage of the fund. For instance, around 1969, Buffett's partners generally got their money and paid taxes, but WEB held his Berkshire Hathaway shares. Done right, you can have the fund buy back shares when they sell for a discount, increasing your ownership without paying taxes.

To: VALUESPEC who wrote (1179)	7/22/1998 9:10:00 AM
From: Frank	Read Replies (1) \| Respond to of 3627

VALUESPEC, A post with MEAT: better, supportable, and reasonable. I will digest your comment before responding back with more detail. Well done!

To: VALUESPEC who wrote (1179)	7/22/1998 12:11:00 PM
From: Frank	Read Replies (1) \| Respond to of 3627

VALUESPEC, On CD, I agree with you on the stated earnings front, relative on the S&P front, I disagree, as the model for the company has yet to be firmly established given the market turmoil. Historical comparisons against S&P are erroneous, at least at this stage. I'm not sure of your argument on money flows. Its moving into the market, but I'm not sure if, at a company level, this is relevant. I feel your selection of AOL and YHOO is complete spurious. If I can throw an apple 50 feet up into the air and Nolan Ryan can pump it upto 300 feet in the air, the apple will still fall. The only way these stocks will continue to progress upward is if they achieve escape velocity, and this is not projected to happen, if ever until sometime in the next century. Beany Babies are a safer bet. At least kids like to play with them. I also feel your comments about Warren Buffett might be applicable in this case. CD has strong brand names: Ramada, Century 21, etc. They have gobbs of cash. They will make money. They are also a beleaguered company by the media and have some genuine and contentious accounting problems. You can fix the accounting problems with the stroke of a pen, but perception is a difficult thing to manage. Unless the public has a fundamental reason to change its perception of CD it will remain at current levels. I feel the fundamental changes will arise in the following areas: - Delivery of earnings - Change in management - Execution of strategy If the three things happen $20 is low figure. Another thing to consider, and this is not my idea, but it makes a great deal of sense to: Load up on the winners and dump the losers. I have a difficult time following more than a few companies, but have done well in watching the few. Finally, it may be true about taking a percentage with other people's money, but it sure isn't as much fun. Good luck.