We study critical points of the BPS mass Z, the BPS string tension Z(m
), the black hole potential V and the gauged central charge potential
P for M-theory compactified on Calabi-Yau three-folds, We first show t
hat the stabilization equations for Z (determining the black hole entr
opy) take an extremely simple form in five dimensions as opposed to fo
ur dimensions. The stabilization equations for Z(m) are also very simp
le and determine the size of the infinite adS(3)throat of the string.
The black hole potential in general exhibits two classes of critical p
oints: supersymmetric critical points which coincide with those of the
central charge and non-supersymmetric critical points. We then genera
lize the discussion to the entire extended Kahler cone encompassing to
pologically different but birationally equivalent Calabi-Yau three-fol
ds that are connected via flop transitions, We examine behavior of the
four potentials to probe the nature of these phase transitions. We fi
nd that V and P are continuous but not smooth across the flop transiti
on, while Z and its first two derivatives, as well as Z(m) and its fir
st derivative, are continuous. This in turn implies that supersymmetri
c stabilization of Z and Z(m) for a given configuration takes place in
at most one point throughout the entire extended Kahler cone, The cor
responding black holes (or string states) interpolate between differen
t Calabi-Yau three-folds. At the boundaries of the extended Kahler con
e we observe that electric states become massless and/or magnetic stri
ngs become tensionless. (C) 1997 Elsevier Science B.V.