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

To: Benkea who wrote (1595)	8/16/1998 3:36:00 PM
From: Wren	Read Replies (3) \| Respond to of 3627

If you pay $30 a share for CD.I, you are paying the equivalent of $22.20 per share for CD ($30 divided by 1.3514). However, you will earn a return of over 12% on your money until February of 01. If CD is selling for $22.20 in February of 01, you will have made out very well. If it is selling above $22.20 in 01, you will have had a great return on your money. If the CD stock is selling for much less than $22.20 in 01, you will not have done well. If CD stops paying the dividend on CD.I, you could have a significant loss, because in that event, CD would probably be on the ropes, or down for the count. In buying CD.I, you are betting that Henry will get the company back on the growth track, and will not make any more big acquisition blunders. I think the odds on that bet are very attractive.