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

To: Zeev Hed who wrote (1535)	11/6/1997 3:14:00 PM
From: Rational	Read Replies (1) \| Respond to of 2544

Zeev: The main problem with CTYS is that it has been a play between the informed and the uninformed, with the latter losing in the game!! Sankar

To: Zeev Hed who wrote (1535)	11/6/1997 3:15:00 PM
From: Wayne Umfleet	Respond to of 2544

Zeev, The scenario I paint is NOT exactly the same as it was when CTYS was at $6; in fact it is far from it. I have demonstrated in earlier posts that the effect of dilution becomes more and more powerful the lower the stock price goes. At less than $2, there is a FAR GREATER incentive for Cityscape and its investors, and a far greater reward for a major investor to prevent the potential dilution of the convertable preferred stock. I think you are missing my point about why some financial powerhouse (not necessarily B&S) would be motivated to make an investment here. I admit, I am assuming that Cityscape has to be considered a going concern, which I think it is, if their liquidity issues are dealt with. Again, I believe that if the stock has been beaten down from $6 to under $2 based on dilution concerns, a major investor could finance the conversion of Preferred, eliminate the dilution concern, thus driving up the stock price back to the $6 level again, which would likley reduce concerns about liquidity, and place Cityscape on much firmer ground. But, please don't forget, I am only saying this is one possibility. There could easily be other better, more lucrative strategies to pursue, which we'll rely on the experts at Bear, Stearns & Co. to identify. Also, on the $300 million credit facility, I believe they have only used a small portion of this, and can tap into it further when needed to finance additional loans to customers. Best of luck!