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Corrections Corporation of America Message Board

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  • tiomigi tiomigi Aug 29, 1998 2:10 AM Flag

    20 3/4

    I just stumbled on to this industry. CCA, WHC,
    and PZN all
    looked good. So I bought some PZN and
    WHC. But I have

    1. With an
    exchange ratio of .875 PZN for each CCA the stock

    prices obviously show lots of arbitrage. At todays
    closing price
    I could have "bought" one share of PZN
    for 1.142 shares of
    CCA, which calculates out to
    $19.07 per share of PZN.

    I didn't do that, even
    though it seemed lots smarter to buy CCA, I
    guess I
    just liked the security of the dividend in these
    times, and I just got burned buying CIEN several
    months back
    because I really wanted TLAB. In any
    event I split my
    investment between PZN and

    Anyway...with PZN selling for $21 there is a $2
    gap here. That
    says something....what exactly I
    don't know.

    2. Then I read about the special
    $2 dividend to be paid in late
    1999 for each
    share of CCA and that effectively widens the gap

    Is the merger likely to go ahead? Is there
    serious opposition?

    The fundamentals and the
    story look so good here that I'd like to
    more, but where exactly to put it?

33.07+0.16(+0.49%)May 25 4:02 PMEDT