Stock Question

[opkansas Senior Member Find all posts View Profile Close opkansas]

The price of Cendant stock one year ago (11/2005) was just under $20.00/share. The price on September 3rd (2006) was just under $2.00/share.

Cendant then split into 4 companies and issued a 10 to 1 REVERSE SPLIT. See Below the definition. www.stockdictionary.com

Reverse stock split

A decrease in the number of a company’s shares outstanding. A 1-for-3 reverse stock split would reduce the amount of shares owned by a shareholder to one, for every three shares owned before the split. A company will generally use a reverse split to boost its stock price, which is sometimes instituted by companies to avoid being delisted from an exchange. Reverse splits are usually not looked at positively by investors.

Another ploy that some companies play is to announce a buy-back - which means, of course, less shares outstanding therefore larger value. What happens often is that investors see a "buyback" and jump in. The company buys NO shares (or very little). The value goes up and the "insiders" sell at the higher price and drive the price back down - and start again. Seems to me, since 1999, there has been quite a history for this company.

I personally will not be purchasing any stock in these four companies.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

OK OP, if a person owned 100 shares CD prior to the split and they did not participate in the buyback, how many shares of what do they own now and what is the total value?

[opkansas Senior Member Find all posts View Profile Close opkansas]

100 Share prior to the split was worth approximately $200.00. After the split you have 10 shares worth $200.00.

THE PURPOSE OF THE REVERSE SPLIT IS TO "ADVERTISE" THE $20.00 PRICE OF 2005 WITH THE $20.00 PRICE IN 2006. HOWEVER, THE 100 SHARE PRICE IN 2005 WAS WORTH $2000.00. THE SAME SHARES AFTER REVERSE SPLIT OF 100 TO 10 SHARES IN 2006 IS WORTH 200.00.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Let me ask again, to make sure that is your final answer.

If a person owned 100 Shares CD on July 1, 2006, how many shares and of what do they now own, provided they did not participate in any buybacks.

[opkansas Senior Member Find all posts View Profile Close opkansas]

I answered but it did not appear to take - I WILL SUMMARIZE. On July 11, the price was 1.93 per share for 100 shares. September 1st that same price 10 shares were worth 19.30/share.

THE TOTAL DOLLARS IS IDENTICAL

!

FYI: AvisBudget (CAR) lost $1,000,000,000.00 this quarter.

This gets tricky! Some history for you:
Cendant Board of Directors Approves Simultaneous Spin-Offs of Realogy Corporation and Wyndham Worldwide Corporation
Cendant Stockholders to Receive Dividend of Realogy and Wyndham Worldwide Shares on July 31, 2006. Cendant Adopts Stockholder Rights Plan

NEW YORK 07-13-2006 — Cendant Corporation (NYSE: CD) announced today that its Board of Directors has formally approved the spin-offs of its real estate services and hospitality services (including timeshare resorts) businesses through the distribution of 100% of the common stock of its Realogy Corporation and Wyndham Worldwide Corporation subsidiaries to stockholders of Cendant Corporation. The distributions are expected to occur after the close of business on July 31, 2006 to Cendant stockholders of record as of the close of business on July 21, 2006.

Cendant will distribute one share of Realogy common stock for every four shares of Cendant common stock outstanding as of the record date, and one share of Wyndham Worldwide common stock for every five shares of Cendant common stock outstanding as of the record date. Fractional shares of Realogy or Wyndham Worldwide common stock will not be distributed and any Cendant stockholder entitled to receive a fractional share will instead receive a cash payment.

The distributions have been structured to qualify as tax-free stock dividends to Cendant stockholders for U.S. federal income tax purposes. Cash received in lieu of fractional shares, however, will be taxable.

Cendant currently has approximately 1.0 billion shares outstanding. Based on the distribution ratio, approximately 250 million shares of Realogy common stock and approximately 200 million shares of Wyndham Worldwide common stock will be distributed to Cendant stockholders. In addition, Cendant intends to submit several proposals at its annual stockholders meeting scheduled for August 29, 2006, including one to change Cendant’s name to Avis Budget Group, Inc. and another to authorize a 1-for-10 reverse stock split of Cendant’s common stock to reduce the number of Cendant shares outstanding to approximately 100 million.

I cannot find any historical charts to show you because the company is out of existence. However, in theory - without consideration of the compliexities above - IF you had 100 shares in July, the stock was worth about $2.00/share = $200.00. With the 10 to 1 reverse split, you now have 10 shares @ 20.00 = $200.00.

Avis Budget swings to $1.01 billion loss

(6:37 AM ET) LONDON (MarketWatch) -- Avis Budget Group said it swung to a third-quarter net loss of $1.01 billion, or $10.07 a share, from a profit of $499 million, or $4.72 a share in the year-ago period. As previously announced, revenue for the period rose 1.2% to $1.56 billion. The company said the loss was due to $480 million of charges related to the spin-offs of Realogy Corp. and Wyndham Worldwide Corp. as well as a net loss of $634 million on the disposal of discontinued operations. Avis has previously said it will restate its results for 2003 through 2005 as well as the quarter ended June 30, 2006. The approximate impact of the restatement in the June 30 quarter will be to raise the reported net loss from $754 million to $1.05 billion.

CENDANT CORP (NYSE:2214638)

Last Trade: 1.93 $
Trade Time: Sep 1
Change: 0.00 (0.00%)
Prev Close: 1.93
Open: 1.93

Day's Range: 1.92 - 1.95
(14-Mar-06)

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Obviously we are having a failure to communicate.

My answer to the question, If a person owned 100 Shares CD on July 1, 2006, how many shares and of what do they now own, provided they did not participate in any buybacks? is:

10 Shares CAR
20 Shares WYN
25 Shares H