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Non-Tech : Cityscape Financial (CTYS) -- Ignore unavailable to you. Want to Upgrade?

To: TNH who wrote (1237)	10/21/1997 8:24:00 PM
From: Rational	Read Replies (1) \| Respond to of 2544

Click on live charts. It should work with trial accounts. The trading after-hours is not a lot -- about 100,000 shares in all -- less than 10,000 shares each. The good part of the announcement is that CTYS will come out of the "gains on sale" to its own trust. The gain on sale is a standard practice (required by FASB) of all banks that securitize. But, if the assumptions for gain on sale (mortgage servicing receivables, discount rate, pre-payments, etc.) are not reasonable, the earnings "estimate" will appear inflated or deflated. This is the reason for why the Wall Street is critical of the gain-on-sale concept. But, the new approach will certainly clean up and make CTYS as one that wants serious business and show real dollar income, though at much lower rate per share, IMHO. I am at least relieved to hear that their OFT-UK discussion is going on, they are in compliance with the new OFT guidelines, no one is "arrested" and that Bear Stearns has gotten into the Driver's seat. It does not appear to me that Bear Stearns will lead to reorganization and Chapter 11 for CTYS -- but, I could be wrong. We will see a reaction to the news in the stock price tomorrow morning. Sankar