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

To: sjemmeri who wrote (1608)	11/14/1997 12:28:00 PM
From: Rational	Read Replies (1) \| Respond to of 2544

I think about $50 mil of conv is remaining and at today's price, it will amount to 25 mil shares plus 44 mil outstanding, totaling 69 mil. Applying to the tangible book value of about 150 mil, the price should be about $2 per share. This assumes that the conditions will remain good enough for the price to stay at $2. If the price falls due to a deterioration of these conditions, then the book value per share will also go down. Many of the convertible holders were not eligible to convert. But, of those who were, many did not convert at $1 5/16. This could be because they too felt that the market would not be as exuberant as it is now. Sankar

To: sjemmeri who wrote (1608)	11/14/1997 12:35:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 2544

Apparently not, since they are still assuming 32.5 MM shares roughly the same as last quarter. I should have said 100 MM preferred conversion, by the way. I have based my calculations on true net book (net less "goodwill") at $146 MM and taking an additional 50 MM shares with conversion at $2 share. The situation is worse if in the last few weeks of heavy volume a lot of conversion occured at the 1-5/16 to 1.5 range. But until they get authorization to issue more than the 100 MM shares authorized, the worse book value is $1-7/16, so we are not too far from there. Of course if they experience additional deliquencies due to an economic slow down here and in the UK, then look below. WE must remember that they have a portofolio of more than $2 Bill and are originating at the rate of about $.5 Bill per quarter. If some of these are sub par (and after all this is their specialty), then they are exposed to a downturn in a bad way. Zeev