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

To: Benkea who wrote (2976)	2/3/1999 1:28:00 PM
From: Jay Larrabee	Respond to of 3627

Benkea ... Well said and well explained. Thanks. Good Luck Everyone, JL

To: Benkea who wrote (2976)	2/3/1999 2:10:00 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 3627

How much of that 5 to 6 mil is buying vol? On average I say less than 40% of the volume of any major stock is the position volume. The rest is day trading. The more active the stock, the more trading activity on it. For example, CD has float of 657 million shares. I don't have the numbers handy at the moment, but I estimate that about 75% of the shares are held by a few big holders who are into day to day trades (eg. pension funds, insiders, big investors...) that means that only 164 million shares are actually circulating. Given that on average a stock is held about 4 months (90 days), then your day traders are responsible for: Avg. vol. (6) - Avg. daily turn over (1.83) = 4.2 million shares a day In other words, position trades account for 30% of the volume. This is of course a rough estimation, but is a lot closer to the truth than "50%" buying volume. Keep in mind that for every buyers there has to be a seller. So if buy back was responsible for 50% of the volume, then there would be no one else who was buying the stock and there were no day and position traders either. Regards, Sun Tzu