Hope your tan's better, 'cause mine is long gone.
Nic has hinted to me that Baker's no longer works
anyway. On March 31, I plan to open my dividend check
with a Brunello di Montalcino and say too myself "Wow!
I've got cash and didn't have to sell any stock or do
I was not "involuntary" inspecting a PZN facility
(I know, it would be a dream of yours, but, then,
you are dreaming from last April; besides, as a
shareholder, I probably could expect some perks, like having
Internet access, so as my postings about DOC would have a
sense of continuity!). In fact my tan is now no worse,
than yours, probably, and I continue to prefer Chateau
Margaux to Baker. So there!
But of course all investments carry some sort of
risk. It's the balance of expected return verses
expected risk is the key, IMO.
business continues and some investors continue to make
money dispite huge legal problems. IMO, for the Private
Prison Industry to have large legal problems means it
must be doing much worse than it's public counterpart,
I see the opposite.
The risks which concern
me more are political not legal.
First I have read your discussions on the
earnings and I have to say there were some good points
made. But I am of those out here that think that
considering all the legal troubles this industry has faced in
the past and WILL continue to face in the future. I'm
not sure its long term future is as secure as some
like to think. My question is are you guys really
comfortable investing long term capital into it knowing that
a $2.40 per share dividend will not be enough to
make up for the capital loss that either you or your
clients may incurr should this industry (Private prison)
not regular reits fall even farther out of favor than
it already is? You regulars will write me off i'm
sure and thats ok But its something that you would be
a fool not to consider.
Yes you Gents are correct, thanks. Of course in
the long term the new equity better be accretive or
there is no sense to issue more stock. But since
Prisons take a few years to build it will be dilutive in
the frist year or 2, yes?
I stated a month or so ago that this stock was
going NOWHERE until it broke the 25 level. 20 3/8
today. Its gonna take a whole lot more news than just a
dividend announcement to get this one out of the gutter.
If your a long term holder of this company you may
see a pop (MAYBE!!) But, if your a short term or day
trader with a long position on this stock your gonna be
The regular dividend was just increased from $.48
to $.55/share PLUS $.05/share of early payout of the
special dividend for a total of $.60/share or $2.40/year.
This is north of a 11% yield.
Your only defense
is to continue to buy, IMO. A dip under $20 seems to
be working out nicely and will help you retain your
share of future earnings to combat private sales to