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

To: Apakhabar who wrote (1467)	8/7/1998 11:51:00 PM
From: Benkea	Read Replies (2) \| Respond to of 3627

Apakhabar: "With a PE over a hundred now," Are you on drugs? FY97 EPS were $1.02 before one-time charges. Those earnings will be restated by max .28 (and as little as .22) for a net of .74 with a current stock price of $15 = a trailing FY97 P/E of 20 vs. projected EPS growth in FY98 ($1.03) over FY97 (.74) of 36%, and a forward P/E of 15 vs. that 36% growth rate -- P/E is WELL over a 50% discount to growth. Further, FY99 estimates are $1.27 or 23% over FY98 for a P/E of 12 --- again P/E 50% discount to growth. I guess you have a seen a quite a few S&P 500 companies (LIKE CD) trading at a 50% discount to their DOUBLE-DIGIT growth rates lately OR EVER? Let's not be silly about using post one-time charge earnings for your calculations. If you have any doubt that we don't use these in the real world, take a gander a Lucent's (LU) report for this quarter. They reported EPS of .32 (.05 ahead of estimates) BEFORE ONE-TIME CHARGES and a .17 LOSS AFTER ONE-TIME CHARGES. Go to First Call and see if it says they lost money or earned .32! Please do report your findings. Incidentally, the correction of over-reserved merger expenses will leave book value UNCHANGED @ $4.5 billion. Don't be ridiculous - eh.

To: Apakhabar who wrote (1467)	8/8/1998 6:25:00 PM
From: Axxel	Read Replies (1) \| Respond to of 3627

Some value maybe at $6 7/8...MAYBE...

To: Apakhabar who wrote (1467)	8/8/1998 6:28:00 PM
From: Filippo Zucchi	Read Replies (2) \| Respond to of 3627

I do not want to assume the kind of nasty tone that a few others have directed at you, but I do think you are misreading the fundamental impact of CD's accounting problems. On a real dollar basis the restatement of earnings will be a wash with the rollback of merger charges. As for CD's growth rate assuming CUC's businesses do not exist - i.e. $0 revenues and $0 earnings - you still have high teens to low 20's growth rate. Plus remember that CD has book value of $14, assuming $0 for CUC's businesses. CD will remain under pressure b/c mgmt. is unquestionably tainted; also CD would get whiplashed by a recession. Nevertheless, it is hard to find so many top quality businesses under one roof, at 14 times earnings. CD is risky but I think it has a hell of an upside. By the way Mr. Silverman, if you are reading this how about a dutch auction for 15% of CD's stock - that will get the Street's attention.