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

To: Terr who wrote (1466)	8/7/1998 10:31:00 PM
From: Apakhabar	Read Replies (4) \| Respond to of 3627

IMO the poor performance of CD this week is due to the radical change in fundamentals, and in the story of the stock. No longer will Cendant benefit from the synergy of CUC and the idea of customers from one unit becoming customers of the other. CD is left with some nice brand names but many are in businesses (real estate, rental cars) that don't offer the explosive growth found in technology or medicine. With a PE over a hundred now, and only twenty to twenty-five percent growth planned (i.e. hoped for), it is becoming less and less likely that the price is going to appreciate more than 30% during the next year. I mean, on a fundamental basis, why would it? What is the justification? So, assuming the price stablizes at its present bottom, a buy today at $15, realistically, might be worth $19 or $20 sometime during the next year, if (and only if) all goes well. I think those hoping for $30 are in denial over the change in fundamentals that massive accounting fraud entails.