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

To: Ray Dopkins who wrote (1416)	10/25/1997 8:41:00 PM
From: Zeev Hed	Respond to of 2544

Ray: I am not sure about the debt side either. It is now at 70 thus you have at best a chance to make about 50% (with accumulated interest), but what if CTYS is going into chapter 7 not chapter 11? Few years back I looked at the convertible debtr of Southeastern bank, I started to look at them at 70, when they reached 48, I bought just a little, they kept being downgraded by the services, but my study of their assets base indicated they had at least 110% coverage under the worst circumstances of all their senoir debt. Well, to my horror they dropped within a month to 11. I restudied the new figures and come up to the same conclusion, so I bought a bunch at 11. The next day, the FIDC put them in Chapter 7. I was right about my analysis, but by the time the bankrupcy lawyers and accountants (more than twoo years later) ravaging the assets that were left over, we debt holders got something like 50 (quite nice on my 11 but nothing towrite about on my first bunch at 48). I think you will sleep better buyin government securities than CTYS' bond, at least no as they are dropping like a stone (the week before they were still at 81). Zeev