I feel like I just fell for a scam concerning this investment. I bought PZN right after the last upgrade by an analyst at 25 7/8. At that time all the peripheral fundamental indicators looked great for this stock. A REIT with substantial growth potential is a rare commodity these days. I should have investigated the CCA thread that some of you on this board have mentioned. So what the Hell is the deal. I realize that REIT's in general are out of favor right now but PZN's price has dropped just about every day for the last 2 weeks. I also am aware that this company does not concern themselves with PR very much hence the lack of news. I would have expected the stock price to increase after the last contract. Can anyone give me any info about anything concerning this stock.
Contrary to some of the sentiments and worries expressed on this message board, Value Line (report dated: 12/18/98) was quite upbeat on the prospects for CCA and its upcoming merger with PZN: "The financial prowess resulting from the merger, due to enhanced access to capital, should provide further opportunities to the company, particularly for owning and managing facilities�..the entity will now have the opportunity to own a facility without taking on the management responsibilities. This would give the company access to states, such as California and New York, with many potential inmates, but where strong unions would not allow prison-management functions to be outsourced�..the company�s current share of the private-prison sector exceeds 50%, and it is winning at least half of the new contracts being awarded to the industry�..the resulting company may be appealing to those investors with a long-term horizon, due to the industry�s favorable outlook�.we expect this industry to continue to garner contracts from the public sector at a increasing pace, fueling exceptional top-line growth for the primary players�.moreover, this industry has little exposure to an economic slowdown since crime, though statistics show it is declining, will always exist in society� Value Line�s 3 to 5 year stock price estimate for CCA ranged from a low of $45 to a high of $70 per share - I imagine this estimate applies to the merged entity as well since Value Line didn�t make a statement to the contrary. Value Line is available at most local libraries for those interested in reading the full text of their report.