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Corrections Corporation of America Message Board

  • Agent00077 Agent00077 Feb 6, 1999 3:18 PM Flag


    Gosh ... if Cleo and the General keep this up I
    am going to have to submit the dialoge to "60
    Minutes." That is assuming that show is still on. Actually
    even if the show is still extant I think the
    point/counterpoint segment has been discontinued. But this is not a
    complaint, as this humble poster likes good drama, and the
    Bill and Monica show is kinda winding down ... it
    would appear. If the General is married I hope his wife
    is understanding, as there seems to be a love/hate
    thing going on here. LOL BHOKL. Or is it that our
    distaf player has a subliminal wish to be in the Happy
    Brigade. Hmm. Something to ponder ... no? I like it that
    most in the H.B. are not only happy ... but also
    patient. As for my two cents or 1/50th Real (hey I am not
    G. Soros so I am not sure about the math here), I
    feel that we cannot expect to get much momentum until
    people become more interested in "defensive" stocks. Of
    course, we could get a quick 20% pop if we could render
    the stock more offensive by renaming it and
    state that we have an "internet presence" since we may
    have had a recent poster who seemed for a while
    (remember the Vasolene) to imply that he was rendering his
    missives from within the large house. eom imho

    Postscript: Every time I do one of these postings I feel like
    I am using up a portion of my Andy Warhole
    allotment of the 15 minutes. Maybe one can reapply if those
    segments of time are used well.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I dont think many here are interested in your selective trading history. It is of no use ot any one except for your EGO. Grow up!!

    • I think I'm falling in love with you. I choose both options.

    • you've got it all wrong, my friend: you should
      trade in your regular account, where you can take
      advantage of your losses, and collect dividends in
      non-taxable IRA, where you accumulations are limited by law!
      But then, again, this thread seems to attract some
      strange birds with a perverse logic (hear me, Anderson,

    • The first time I bought PZN it was for long term
      yield and the stock promptly dropped for no apparent
      reason. A day latter it
      jumped and I sold at $2,000
      profit. The next day or so it dropped and I bought again
      and it went up and sold for another
      profit. I then rebought again and sold for $1,500

      Since my last sell stock is now down over 2 points from
      last sale and about a 1point below previous
      buys. This
      has been done in my IRA which I trade The
      stocks I traded
      have been very profitable whereas
      some of my long term
      holdings are down in this

      I am not a chartist but even I can see PZN is being
      sold after it makes a small advance. I don't mind
      trading im my
      IRA as I pay no taxes. I have substanial
      funds available in
      my regular accounts and am
      interested in buying high yield
      stocks for long trerm
      growth and income where I use my IRA
      to trade for
      short term gains.

      Ps PolyRat was a term for
      students at Cal Poly when I was
      a student many years


    • There some of the same ear markings on other
      stocks I just to one day want to be able to spot the ear
      marking, and win the game. If you can over look my
      typing,spelling and the inability to put things together, you
      might find my post at MCSI of an interest to you.
      Before they run there stock up to 3.00 you might have an
      interest.I beleive CCA OR PZN may look that way for a buy
      out,this is my quess. They have be known to buy out up
      coming companys in this field. thanks garry

    • I believe when people use the term "return of
      capital" in the brokerage industry in general they are
      referring to the tax status of the dividend. IRS approved
      "return of capital" is not taxable in any form, I believe
      this is what Lee referred to in the CC.

    • <<<<<I regard a return of capital
      as a payout beyond retained earnings, not merely a
      payout of retained earnings>>>> I always
      thought of return of capital as just that, a return of
      your money. Tax wise it can be treated different I
      understand. Your correct though, in this situation it will be
      taxed as ordinary income even though it is the retained
      earnings accumulated since the company started, why I
      don't know. If the company had sold a big division it
      could be deemed a partial liquidating dividend which
      reduces your cost basis, this is not PZN's case

      <<<<As for the stock dropping
      by the same amount of the dividend
      payout>>>> ALL stocks that pay a dividend OPEN ex-dividend
      date LESS the dividend. Call the NYSE yourself or call
      your brokerage company. I do see why you'd think the
      special dividend a benefit by not realizing this, check
      it out, it's important to know.

      When you buy
      PZN now your buying it with roughly $24/shr. of
      shareholder equity after the new step-ups. After the special
      dividend PZN's shareholder equity will reduce by the about
      of the dividend too. So if it's $2 (not $2.50, more
      shares out according to CC reduce it)The new SH equity
      will be $22 and the stock price will be $2/shr. lower
      too, see how your just "getting your own money back"?

    • It is true that the special dividend is 100%
      taxable. But in response to Lee's question, "How much of
      the special dividend is a return of capital?", Doc
      responded, "It's all ordinary."

      I understand where
      you're coming from by asserting that it's all a return
      of capital, but I question the verbiage.
      Technically, capital is derived from three sources- debt,
      direct equity infusions, and anything that adds to
      retained earnings (net income). The total amount at a
      given time (as you understand)will equal the asset
      value of a company.

      I regard a return of capital
      as a payout beyond retained earnings, not merely a
      payout of retained earnings. Although technically a
      payout of retained earnings is a return of capital, it
      is "not" in the sense that Lee was asking or Doc was

      As for the stock dropping by the same amount of the
      dividend payout, that would be very interesting to
      witness. I've never seen that happen before. You see, to
      the extent that our special dividend is ordinary, we
      should see this price fluctuation with all distributions
      not just the special one.

    • In your littany of things good about PZN, you forgot one more:
      DUMB or CORRUPT MANAGEMENT (the choice is yours)!!!

    • So, you are "a value investor seeking safe yields". That is why you "started to TRADE PZN with good results". Clearly, makes a lot of SENSE!!! Is your name just RAT??!!

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29.27-0.57(-1.91%)Feb 5 4:04 PMEST