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

To: Apakhabar who wrote (1479)	8/9/1998 9:36:00 AM
From: Benkea	Respond to of 3627

Yahoo's numbers and CD's growth. I would strongly recommend you NEVER EVER use Yahoo's numbers. I have personally found them to be wrong much more often than correct. They often screw up # of shares outstanding, etc and always report EPS AFTER charges. Yes the growth rates I posted were produced from current First Call estimates which may very well be revised downward, but the 7/14 press release and SEC filing says FY98 will only be revised down .06. I bought CD stock expecting 15% growth going forward. The difference between say 20 - 25% and my 15% expectation will be my margin of safety or bonus (I hope). However, do remember that Q1 98 earnings were .26 and will be restated by .02. Thus .24 is still very very strong on 850 mil shares or $204 mil net per quarter. Lastly, since many of the acquisitions have not yet closed, they should be responsible for at least the extra .24 EPS estimate of $1.27 for FY99 which would represent 23% growth over FY98. This week should be very very interesting with earnings on 8/13/98 and OFFICIAL final restatements for 1995 - Q1 98. Although I was very surprised by the erroneous comments made by Silverman on 4/15 regarding damages to 1997, I would be much more surprised if the 7/14 numbers were erroneous since they are included in an SEC filing also filed 7/14.

To: Apakhabar who wrote (1479)	8/9/1998 10:02:00 AM
From: VALUESPEC	Respond to of 3627

<<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 . . .>> Apakhabar, you appear to be mixing up information still. The purchase of CUC certainly has added to overall value for CD and earnings certainly would have been WAY higher for 1997 without the purchase. Without the CUC purchase, earnings would have been about .75 and for 1998, ending December 31, the earnings should be about $ 1.00+ in spite of the purchase. If earnings for 1998 are $ 1.00 for 1998, what would the PE be? Hint: Take $ 15/ $ 1.00 = 15 which is a low PE for a stock you expect to grow at 20% + Also, if you expect CD to increase about 30% over the next year, would that not be a great return? How much do you think the overall S&P 500 will return over the next year? CD: $ 15.00b $ 15.13a VALUESPEC valuespec.com