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

To: BOB JOHNSON who wrote (1582)	8/15/1998 11:22:00 AM
From: Roger B Finlen	Read Replies (2) \| Respond to of 3627

you lost me there, about mid-way, but any way, lets review some past thoughts. CD.I presently trades on two factores, 1 is this is a conv., each security = 1.35 shares common.= 23 dollars, 2nd preferred = about $10 preimum for value of income, 3.75 a year. If you recall, Benkea mentioned that this security has an accrual clause in it, saying "if we not pay div on time, we will pay sometime in future" and i said if that happened (withhold div) holders would get a 30% haircut, the 10 preimum would go away and the securities would settle out at conversion rate only, around 23. Companies would withhold preferred div only as "last resort" - happened in'91 with Unisys, UISprA issued at 50, with a high of 70, crashed and traded for 9 and less. So what i said was one would expect is if common went up any day, I would expect PRIDES to go up at least 1.35. also I had no history on the CD.I price movement and asked for charts, whick Benkea provided me.If you followed the whole crash, you would have seen CD common go from 41 to 14 and settled out at 18 day of crash, next several weeks common drifted back to the 22/25 area, then Henry said "worst than thought" and shares tanked again to 14 area, this is when I became interested and started to follow the preferreds, figuring the worst was over and believing in Silverman's ability, i saw a low of 29 on CD.I and bought @ 30, shares slide up to 18 and I buy more @ 33 (also div payment was in a week), shares slide back to 14 and preferreds make a new low, that's when you came in. I believe, right this minute, CD common is worth 24/26 and I had no idea of what the preferred traded for at that level, Benkea again came back with info that at 22 per common, CD.I traded at 36 in a sinking market, given my formula above, when shares go back to 22, i expect CD,I to trade at 40, in a rising market for CD and CD.I. Do remember, when shares return to 36 area, conv right goes to almost 1 for 1. enough - do good - roger