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

To: Benkea who wrote (1468)	8/8/1998 5:16:00 PM
From: VALUESPEC	Respond to of 3627

Benkea, well put. Apakhabar is way off with his PE estimate on CD. His method seemed to distort the true picture of CD and its potential. CD: $ 15.00b $ 15.13a VALUESPEC valuespec.com

To: Benkea who wrote (1468)	8/9/1998 9:03:00 AM
From: Apakhabar	Read Replies (3) \| Respond to of 3627

Benkea, I took my PE numbers for Cendant from the Yahoo financial section. Yahoo is reliable in reporting up to date trailing PEs that include all charges. The Street usually looks at earning from operations, before charges-- that's true. Often that's because big charges come from acquisitions or something that will help profitability down the line. In Cendant's case, the whopping charges do not imply that income will be enhanced going forward-- on the contrary, all that CUC income and synergy that analysts six months ago were talking about has vanished in the fumes of fraud. Anyway, Yahoo reports the trailing twelve months earnings to be 13 cents and that gives them a PE of 118. Look it up. You have faith that Cendant will grow at, what 36% next year? Tell me why. You're using numbers that I believe you will find are out of date and don't reflect the current situation, including earnings going forward. I thought I read recently that Silverman himself thought CD would grow by 20-25%. Since they recently missed their number, I think it prudent to go with the lower figure of 20%. You have a point in that these charges aren't likely to recur. But this is offset by the likelihood that, without the earnings that CUC was supposed to bring to the mix, Cendant's future earnings will be much much less than had been anticipated even a month ago. But I won't mind being persuaded that Cendant has a bright future, because as I said, the downside is likely to be limited from here. I don't find fault with anyone buying at 15, antipating a range trade.