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

To: Rational who wrote (1364)	10/24/1997 10:43:00 AM
From: Greg	Read Replies (2) \| Respond to of 2544

Sankar, I am still long the stock and senior notes. In fact I bought some yesterday, I spoke with Morgen-Walke yesterday and asked if changing business strategy from secuitizations to selling whole loans will create positive cash flow immediately albiet at a smaller % and his response was (I believe so but he needed to verify with company.) From a pure business perspective if in fact the new strategy eliminates the neg cash flow and we believe their network of mortgage brokers in intact and this company can continue to originate loans AND the economics of sub-prime secured lending didn't change overnight AND management isn't stealing the money there is no reason for this company not to survive no matter how many shares are outstanding. The current panic selling as well as the posts on this thread suggest alot of sellers think the comnpany is doomed. I have invested in many distressed companies over the last 20 years and to me (just an opinion) this one looks like a survivor. If anyone gets through to Tim Ledwick ask him If in fact selling whole loans will eliminate the neg cash flow entirely and what effects it will have on volumn of business. If not what are their plans to fund neg cash flow past 1st quarter '98 now that the traditional capital markets are not available Thanks, Greg

To: Rational who wrote (1364)	10/24/1997 11:19:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 2544

Sankar: I think the lesson to be learned is that we little guys will never know what is really going on before the big guys know and thus we little guys must read what they do from the behavior of the stock. This is where TA comes in. It does tell us to some extent where money is moving. Of course in this case, once the floorless ere discovered and the downward pressure was put in motion, it was quite easy to see that the demise of this stock (last Friday) was close. I must admit that the TA did not indicate such a rapid decline, but it definitely pointed to a rapidly deteriorating situation. I do not think that the end of this decline is heree yet. Zeev