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

To: Zeev Hed who wrote (1629)	11/14/1997 4:04:00 PM
From: Bruce A. Thompson	Read Replies (1) \| Respond to of 2544

Zeev, Earlier in the string, someone said that $75MM would take out the convertible preferred. Doesn't that limit the damage @ $2 to about 35MM shares? Also, aren't the investors who buy preferred prone to buy for safety & yield more than for quick profits in a troubled & risky market? Bruce

To: Zeev Hed who wrote (1629)	11/14/1997 4:27:00 PM
From: Rational	Read Replies (2) \| Respond to of 2544

Zeev: The stock closed about 1/4 up. This could be mainly because a lot of new investors were perhaps supposing that CTYS would declare Chapter 11. While I was not expecting a Chapter 11 announcement (although that is still a possibility), I did not expect a loss of $90 mil; I was very pessimistic two days ago when I posted a loss of $100 mil. I was not expecting a resignation of the President. I was also not expecting a limbo for their UK status. Today's dollar volume is approximately $7 million. This is less than $40 million on the day of the previous earnings announcement -- in terms of the number of shares, the volumes are approximately equal on these two announcement dates. I think $1.75 is not a bargain. In many bad earnings announcements, generally, more bad information unfolds following the official date of announcement. Look at BA, EK, MOT and many other companies. I would have felt otherwise if the stock had ended at the high for the day and/or bigger players got in. Will you buy at $1.75? I know, you plan to wait till March for sub-$1 level, but that seems unlikely, IMHO. Sankar