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

To: Zeev Hed who wrote (1540)	11/6/1997 3:59:00 PM
From: Ploni	Read Replies (2) \| Respond to of 2544

First Call is showing the estimated mean eps for the September quarter is 0.43, with 5 brokers guessing, er ... estimating. The high estimate was 0.65, and the low was 0.12. I don't know if these figures have been changed, or not. Clearly, the 0.65 is wrong, because we've been told that earnings would be lower than earlier estimates. However, the low of 0.12 doesn't ring a bell with me, and may reflect a revision. First Call is still estimating 2.15 for fiscal 1997, and 2.51 for fiscal 1998. September earnings were supposed to be released this week, but ...?

To: Zeev Hed who wrote (1540)	11/6/1997 4:15:00 PM
From: Rational	Respond to of 2544

Zeev: Actually the conversion price was fixed at a premium (not discount) to the trailing price with a callable feature -- the terms were quite like that issued by most companies. A premium or a discount is not really critical as long as the conversion price is a linear multiple of the average trailing price. If the fundamentals deteriorate, the stock price worsens, and the dilution becomes heavier. On the other hand, if the fundamentals improve, stock price firms and dilution is lessened. I do not think that issuance of convertible preferred stock with a conversion price set as a linear multiple of the mean trailing stock price, per se, indicates much about the fundamentals. If they did, CTYS stock price would not have risen from $10 on the date these conv pref stock was issued (Sept 10 or so) to $12 a few weeks later. It is only after Sept 30, when the management knew about the deteriorating fundamentals (and some insiders sold) that the situation has worsened. Sankar