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

To: Paul Capozzoli who wrote (1444)	10/28/1997 6:14:00 PM
From: Rational	Read Replies (1) \| Respond to of 2544

Paul: The late trades were as follows: 16:41 $2 3/4 3,000 16:41 $2 3/4 3,000 16:40 $2 3/4 4,000 16:40 $2 11/16 2,000 16:31 $1 27/31 230,000 16:26 $1 7/8 4,000 The 230,000 order seems to have gotton filled at prices from 1 1/2 to 1 27/32. Earlier during the day: 11:12 $2 17/32 500 11:11 $2 9/16 456,500 11:01 $2 1/2 1,000 11:01 $2 1/2 5,000 It seems the 456,500 was a buy order. Thus, although the closing price as of 4:00 ET is 1 7/8, the after-hour close is 2 3/4. What if: * The insiders buy enough shares to give to the convertible preferred stockholders, after the earliest date for conversion (Dec 15), enough shares acquired at an average cost of say $2.5. * CTYS makes an announcement that a majority of shareholders have approved of stock repurchase at the market to meet the conversion requirement and they do not expect any dilution! * Share price climbs to $10 before Dec 15 and convertible preferred stockholders get 7.5 mil shares (if they choose to convert) that CTYS acquired at a cost of 2.5 x 7.5 = $18.75 million towards the $75 mill of preferred stock money they received. * Every shareholder hanging on smiles. * Who are the losers? Those who sold their stock and got churned and burned in the market!!! The above is very feasible. If I know CTYS is fundamentally OK and I work for Bear Stearns, I will follow this. The other alternative is that CTYS is ready to go to Chapter 11 which has a small probability. Remember: Convertible Preferred Stockholders do not seem to have shorted given that the short interest has not gone up much as of Oct 24. Sankar