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  • newMK newMK Jan 9, 1999 2:39 PM Flag

    Anybody read streetcom today??? What doe

    Chris Edmonds' analysis seemed a bit superficial.
    Sounds like he read Cleo's posts on CCA thread and drew
    quick conclusions. Even Cleo admitted the merger was
    great for PZN (in her view, at the expense of CCA
    shareholders). Here's what I think Edmonds is

    PZN isn't issuing capital for "vague reasons".
    Although the boilerplate language in SEC filings may not
    detail specific projects. Again, on the CCA thread (and
    of course in quarterly conference calls, etc.), it's
    been well detailed how much capital CCA needs for
    projects that are already announced (not to mention the
    big special dividend at the end of this year). Unlike
    losers such as PAH, CCA also knows where its capital
    will come from (HSBC).

    As far as PZN's
    missteps, Edmonds didn't mention any. Taking Cleo's
    position (anti-merger), one would have to say PZN got a
    bargain in its combination with CCA. If nothing else, the
    FFO from the "old" PZN facilities should double, plus
    PZN will now get all of CCA's income (and then

    Of course, Cleo would also say that the market
    doesn't like this deal because mgmt is lining their
    pockets. But again, in her words, that got fixed with the
    settlement of the class action.

    Once the market
    "experts" such as Edmonds overcome this superficial
    analysis and ignorance, I'm hopeful they'll see that PZN
    has everything going for it that every other REIT can
    only envy.

    Remember 1997 when PZN first went
    public? The experts made it the hottest REIT offering
    ever and the best performing of the year. That was
    when it was one-fifth the size it is now, received
    rents based on half the valuations, had a growth rate
    less than half of what is now expected, and had to
    negotiate (and be dependent on) another public company (but
    had a stock price of almost twice what it is

    OK, Cleo, we all lost our growth company. That's
    history. Time for PZN to get appreciated.

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