Starwood and MGI Properties will be dropped from
the Morgan Stanley REIT index following the close of
trading January 15th. Four REITs will be added including
PZN, La Salle Hotel Properties, Philips International
Realty and Host Marriott.
The "special dividend" will be a disbursement of
CCA retained earnings. It will be declared, I
believe, sometime in early December to be paid near the
end of December.
I have no idea what the
"record date" will be but probably end of November, or
what ever is standard procedure. It will go to share
holders of record on that date, not to any previous CCA
share holders who have since sold. The amount of the
dividend is still debatable but many belive it will be in
the range you mentioned.
Anyone with better
info. please feel free to correct/ammend my memory on
It's been a long time since I posted here and I
have a question regarding what I thought was going to
be a one time dividend payment to those people who
were and had been holding cca stock before the merger.
I know that for ever 100 shares I have been reduced
to 87.5 and I have lost a great growth stock for a
reit and at a time when reits are out of favor. But I
thought at least there was going to be a perk of that one
time dividend of $2.00 + to CCA shareholders.... Where
is it? And when will I see it if it exists......
Somebody out there please answer me... Thanks
People forget that Doc started out running a
management company, no Real estate. Over the years it's
become apparent to Doc (and his competitors) that owning
the property is a good way to go. Doc, IMO, has
taking the next logical step in his progress of
converting a management company into a real estate
management company, turn it into the structure of choice by
RE operators, a REIT.
Peter principle? Probably not.
been covered by a number of posters smarter than
me over the past several months. As shareholders, we
to run a private corrections company in a
way that produces
maximum returns and beats the
competition. Stock price is a
function of many influences,
not all controllable or rational or
Ultimately, if Doc does what we pay him to do,
price will follow.
The history of CCA speaks for
itself. The future course of the
business is anybody's guess, but I think Doc's
is likely to be the best. What happened in Texas in
past year may be a good indication of the
future of the business.
Low rate re-bids don't
exactly increase margins. In this business,
you agree with Doc or not, you have to admit that he
the leader. Everyone else is a follower.
the Christians outlasted the Romans. Faith in Doc
is based on his track record and demonstrated
vision, not wishful thinking.
Everyone has limits to
their abilities. Has Doc reached his? Maybe, but maybe
not. I still have money on him.
And what does
gender have to do with it? Or was it gander?
any case, this duck still is the market leader and is
still growing. Seems like even lame ducks deserve the
chance to heal.
The old cleo might recall that I expressed all
those thoughts many months ago and fairly consistently.
The overriding consideration is Doc (as we have
discussed before). He's smarter than either of us, and he's
been through worse than this.
You seems to be getting religion! Remember, that
ostensibly the reason for the merger, as the management
would like us believe, was to gain access to capital.
We gained this access, allright, but at what
cost??!! I bet you, selling some shares in the old CCA at,
oh, say, $40, would look mighty good now! Well, enjoy
your dividends, while they last!
<<<<<<Also, as you may recall,
Doc was puzzled way back in April that PZN's price
would go down. Is it possible that he saw little
dilution when the deal was originally planned and PZN was
in the high 30s? Or could it be that someone just
plain forgot about dilution? The consensus growth
figures are depressing. >>>>
PZN at $19 would be twice as dilutive, adding new
shares, then at $38. That would certainly would eat into
your payback time on any project, correct?. This
depressed stock fact alone would easily cut a 40% growing,
knowing how much new capital PZN is in need of and will
be in the future.
As has been said before by
LT and Anderson, adding new equity is accretive. BUt
certainly the margins are not what they used to
Also adding 20% new shares means that you would have
to 20% of new earnings to cover that dilution just
to remain at staus quo.
Your right MK 10k in new
beds for '99 sounds low from what I've heard. They put
over 7,000 new beds in the 4th quarter alone. I just
don't see a reverse effect of HSBC equity capital this
year. New earnings should easily be able to cover any
new dilution it seems with room to spare for FFO/Div
But the upside is it's becoming a BIG BOY
game. Two guys and a line of credit are not going to be
competition anymore. That alone should hopefully keep the
payment per prisoner steady, I hope.
And no news
of "other business" too bad. Watching WHC they seem
to be diversifing more quickly then before doing
guard services, etc. Doc has obviously wanted to go a
differnet route and get in the financing and building
I'll await the conference call with interest.