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Corrections Corporation of America Message Board

  • flipper_58 flipper_58 Mar 23, 1999 1:40 PM Flag

    What do you get for $8/share these days?

    Here I go with my calculator
    again.....

    Assuming a CONSTUCTION cost of $35k per bed, PZN's 30K
    beds are worth $10 per share. Forgetting any step-ups,
    etc..

    Your risk/investment, as I see it is
    $8/share in PZN for I can't imagine ANY near term problems
    that would cause prison beds to sell BELOW
    construction costs if PZN sold their all their beds.

    If
    you believe those assumptions then at $18/share you
    should have ALL of your risked funds invested in PZN
    back by the Fall of 2001 or 2 1/4 years($1.80
    remaining 1999 special and regular div.+ $1.80 special
    1999, $2.40 for 2000 regular div., 3 divs. in
    2001=$1.80....total $7.80 paid out) So by the Fall of 2001 you will
    have almost zero risk with your remaining investment.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • why is PZN stock falling so much. How many
      million shares have to be traded before the disgrunteled
      stockholders are out and we have a new set of stockholders who
      are interested in what the stock IS doing - rather
      than what they negatively perceive. On the constant
      complaint that CCA should not have ever been turned into a
      REIT, a company official reckoned to me that the growth
      rate of the past could not be maintained.
      I guess
      we are in such a euphoric market a dividend of 11%
      doesn't "turn anybody on". I am from the old school I
      guess.
      I appreciate this return.
      Constructively
      speaking, Doc and his minions really need to hire a good PR
      firm to get the PZN story out in a manner that the
      investing public can understand it, and also disspell the
      rumors that they are a bunch of crooks out to rook the
      stockholder.

    • The following is a quote from Peter Lynch's book,
      "Learning to
      Earn."

      ============================================================
      If you are going to invest in a stock, you have to
      know the story. This is where investors get themselves
      into trouble. They buy a stock without knowing the
      story, and they track the stock price, because that�s
      the only detail they understand. When the price goes
      up, they think the company is in great shape, but
      when the price stalls or goes down, they get bored or
      they lose faith, so they sell their
      shares.

      Confusing the price with the story is the biggest mistake
      an investor can make. It causes people to bail out
      of stocks during crashes and corrections, when the
      prices are at their lowest, which they think means that
      the companies they own must be in lousy shape. It
      causes them to miss the chance to buy shares when the
      price is low, but the company is in terrific
      shape.

      ===========================================================

      Perhaps the story here is not clear enough. I have been
      interested in PZN for some time, and have watched as the
      price has sunk down (today, below 17 for a while). I am
      confused by the prospective dividend, apparently divided
      between for-sure and we-may-pull-it-back. Could someone
      explain this?

      What will happen to PZN if interest
      rates go up (which I am sure they will over the next
      few years)? Does this impact debt already in place?
      What about availability of funds, should credit
      tighten? Can PZN stop building and live on its current
      income? Or does it have to keep building to
      survive?

      The REIT structure is not popular right now, as I
      understand it, partially because rents are not as secure as
      they were. PZN's rents are assured. The prison
      population is at an all-time high, and will keep on growing.
      Crime is down in this country for the simple reason
      that prison terms are getting longer. Keep the
      bastards off the streets, and insurance rates go down,
      people are safer, and life is better. So if PZN's rents
      are secure, why the drop?

      Wile E.

    • I also own several, I like PZN the best.NDE looks ready to run.Also I like UIRT & ICMI, Check them out, I am capturing a great divi while buying @ the bottom and waiting for appreciation

    • Has there been a prison break somewhere?

    • I can't figure it out also. I believe its because
      its a REIT.
      I have just started buying PZN under
      21 purchasing it 3 times
      on its way down. I have
      been buying reits for 6 yrs now. At
      the moment they
      are all acting the same. They are going
      down, some
      more than others. I look at this as an oportunity to
      buy more of the ones I like the best. I use there
      dividend to
      supplement my income. They are better than
      owning bonds. I
      believe pzn will do even better in a
      bad economy. Crime goes
      up as the economy gets
      worst.
      Thanks flipper for your response

    • Yahoo does not show dividend rate in the future.
      they only show the dividend after it has been paid. I
      owned USU, which was an IPO from the federal
      government, with an assured dividend. It was never shown in
      full until the stock had been out for a
      year.

      Wile E.

    • For sure i can tell you that anything that isn't
      related to .com, or a tech is very overlooked these days.
      Thankfully I got into CMGI at the right time. And i'm pretty
      sure that PZN is far far down the list for a lot of
      people. None of my investing friends would ever touch
      this stock, the image of course. But, i'm still in it,
      knowning fully well that its day in the sun will be here
      sooner or later. BTW, for anyone who is looking at good
      divi's, here are a few of mine.......DXCPN DXCPO ENP LHP
      HR WEC
      IBI (ok, ok, im not in this for the
      dividends, but they do pay, and the pictures are great at
      their site.)......SGOLY, and of course PZN. Thanks for
      the symbols.

    • I think there's an inverse relationship between
      your sense of
      humor and PZN $$. 'Specially like (f)
      and (g) at end of 668,
      but real winner is (e).
      Clinton needs you. His Gridiron material
      was worse
      than the Correspondents' Dinner.

      I figure to
      buy some more when the dividend % gets to 40, which
      is coming up fairly soon, IMO. Can't wait. Would
      love to see
      the look on naysayers' faces when we
      can buy a 40% returner for single digits. Hell, I'm
      selling all my Peritus just to have the
      cash.

    • CCA stock had a market value over $40 at one time
      so I don't think that investors are overlooking this
      stock. PZN is being penalized because of risk. Most
      investors demand a greater return given the risks. I think
      investors recognize the following issues: corrections
      stocks were over valued, earnings growth rates are down,
      the merger was confusing (also insider and
      self-dealing issues), surpluses in federal and state
      governments will impact contracting out activity, overall
      market risks (i.e., Asia), event driven risks (escapes,
      riots, etc.).

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