Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Peterson who wrote (6943)	4/25/1999 10:04:00 AM
From: LauA	Read Replies (1) \| Respond to of 78530

I have a very real bone to pick with CD: I lost a ton shorting CUC because of the obvious fraud they were running. I'm out of the picture, but I doubt that the matter has been settled. They're certainly cleaning up the CUC corporate mess, but I would be wary that they still have an asbestos-type claim to settle with their investors. If you have some insight into clearing that problem, please post. Lau

To: Michael Peterson who wrote (6943)	4/26/1999 9:58:00 AM
From: Bob Rudd	Respond to of 78530

CD: No doubt HS made a big mistake and shareholders are rightly pissed about repricing the options [I posted a rant or two myself], but I don't think he was a perpetrator..just dropped the ball on DD by not calling Howard Schilit or similar. Their current strategy is opposite of what caused HFS to soar prior to CUC debacle. Instead of buying accretive earnings with overpriced shares and debt, they are selling non-core assets, paring debt, and buying back stock. Some shareholder suits remain, but it's no tobacco or asbestos kind of exposure. An interesting aspect of CD is that their franchisor status in real estate and hotel business greatly reduces the cyclcality of cash flows vs the direct earnings of the companies themselves. Some may devalue them by overestimating cyclical exposure. I pulled a double on this trading around the collapse, but am out now. See it as a solid holding, but not really a screaming buy.