Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: William Minich who wrote (1517)	11/4/1997 7:42:00 AM
From: Wallace Rivers	Respond to of 2544

Refreshing, well thought out viewpoint. Although I feel the pain of CTYS holders (I've been there!), I feel that jumping on board these suits, while perhaps providing some emotional satisfaction, will provide close to nil economic benefit.

To: William Minich who wrote (1517)	11/4/1997 8:06:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 2544

William: For a change, I agree with you completely. There was no material information that the company did not disclose in due time. Anyone reading the disclosed documents related to share registration and the floorless convertible preferred should have been aware that there are problems in the operation. Firts, the fact that these instruments were floorless by itself indicated thatthe company was in financial straight. This law suit is another ambulance chasing exercise. As a matter of fact, all the defense has to do is pull out my postings on this thread in the middle of the month (and I was a good week or two late getting to these documents) and show that all required information to foresse problems ahead was there for the investing public to review and act upon. The sad thing is that this law suit will now divert management time to their defense rather than to revitalising the company. Zeev

To: William Minich who wrote (1517)	11/5/1997 8:15:00 PM
From: Wayne Umfleet	Read Replies (1) \| Respond to of 2544

Well I got behind on reading the thread and had to do a bit of catch-up. I have a few comments: TO WILLIAM: * Thank you for a well thought out post. TO SHANE: * I got a kick our of your new symbol CRYS; so appropriate for so many Cityscape investors. * Wise advice, not to buy until AFTER the earnings release. * From your post #1501 "I think CTYS will be filing Chapter 11 if its earnings are negative." For gods sake, one quarter of negative earnings does not automatically lead to bankruptcy. Bankruptcy would be caused by Cityscape's inability to pay its creditors and other obligations. Because of all the recent events, and precipitous stock price drop, Cityscape's ability to access funds from the financial markets has been thrown into question. Access to money is what MAY lead to bankruptcy, not 1 quarter of negative earnings, especially if it is due to one-time events. TO ZEEV: * Tooting your own horn. Recently in posts 1482 & 1498 and several others these past 2 weeks. Man this drives me nuts. * From post 1488 regarding earnings and cash flow "These are accounting skewed earnings". Cityscape is following GAAP to report their earnings, and negative cash flow is NOT uncommon among profitable companies. * From SOOOO many of his posts "Floorless, floorless, floorless". You sound like a broken record. The majority of the Preferred stock hasn't been converted yet, although the stock price acts as if it has. From your reply #1500 you say "there other candidates on the thread that had the notion that someone like B&S is going to volunteer and stand in front of a freight train...." The "other candidates" you refer to give logical reasons as to why someone may be motivated to get involved, unlike others who just shout, "Floorless, floorless, floorless". Why would someone be motivated to get their money involved here? Most of us know Cityscape can convert the Preferred into common stock at a premium to the face amount of the Preferred shares. As an example, lets say that Cityscape could do this if it could somehow come up with $75 million. Lets assume B&S (or any other big money) has accumulated 7.5 million shares over the past few days at an average cost of $2/share. Now, this organization, whoever it may be, goes to Cityscape and says, "If you are willing to convert the Preferred stock, we are willing to loan you the $75 million you need." Cityscape agrees to this seeing it as a way to save their shareholders from massive dilution, they make the announcement in a press release, all the concern the market about dilution of CTYS is gone, and the stock, within a week, trades up to $6/share. Okay, so now what prompted this company to come in and "stand in front of the freight train"? Lets see, 7.5 million shares * ($6-$2)/share = $30 million dollars, a return of 33%, on the $90 million ($75 + $15) it invested. Not bad for 3 weeks work!!!!