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

To: VALUESPEC who wrote (1395)	7/31/1998 9:06:00 AM
From: VALUESPEC	Respond to of 3627

Regarding the consensus of .23 of which we will get .21. Is .21 really that bad? Maybe not. As Gimyabreak pointed out on the Yahoo thread, the estimates ranged from .21 to .28 per share (I confirmed this as of 7-24 using AOL's Hoover database). The consensus (or mean, meaning average) was .23. Now, read his post, to see how even a small number of high estimates could distort the consensus: <<Now I'm rationalizing here just a little bit, so stay with me. Looking at the Yahoo detailed research I see that 10 analysts determined the 23 cent 2Q estimate. Their range was 21 to 28 cents. If 9 of the analysts estimated 21 cents and that lone optimist estimated 28 cents that would give us ((219)+(281))/10 = 21.7 cents. So I think the 21 cents is more in line than we're giving credit. So cheer up. There is a mess to clean up and it will take a little time but the future is bright. >> In other words, the .21 per shares estimate may not be as far off as some might believe. For next quarter (ending Sept 30), the low estimate is for .26 and the high is for .37. As you can see, things could pick up nicely next quarter. Also, units will be sold, and that will generate cash that can be used for other things (maybe the ABI purchase or a stock buy-back). Hopefully, this news was already generally expected from the institution, so maybe we will have a pleasant surprise. CD: $ 17.81a VALUESPEC