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

To: Sr K who wrote (1184)	7/22/1998 9:13:00 AM
From: Thomas George Warner	Respond to of 3627

don't see what either piece of information has to do with whether this stock is a good buy at this point depending on your investment horizon. All 1997 figures: Revenues/share $6.34 Cash flow $1.35 Avg annual PE 25 (hasn't been below 23 for last 15 years) Return on total capital average for last 15 years 20% With a PE of 13 now this stock with all of its cash in reserve is one of the buys of this year. Can it go lower, sure, should you buy now, maybe 1/3 of the position and buy more if it goes lower.

To: Sr K who wrote (1184)	7/22/1998 11:41:00 AM
From: Frank	Read Replies (1) \| Respond to of 3627

BEKlein, You are correct, I did not take out the Preferred, I was using this as an illustration in calculating book value, which, is still +$4. On the other hand, to be completely accurate, one should make the proper adjustments for Other Assets as well. A question comes to mind of the purchase date for XCIT, where such purchase is carried at original purchase value, and not reflective of the current stock price. Its like fixed assets. In order to get the true value of a fixed asset, its usually better to get the carrying value of the insurance surrounding the fixed asset in order to determine appropriate replacement value. Maybe I'm just picking nits, but it does bring up an interesting element in considering CD, namely: it should be evaluated on its economic value and analysis should not be limited to what is strictly reported on the books. At this point, this is all speculation anyway, but book value, is with 90% certainty, above $4, and could be as high as $5.75.