� Forber Magazine article titled "Discarded Values" (11/16/98): considers PZN an undervalued stock�."sales are expected to nearly double in the next two years to $900 million."
� Value Line Reports on CCA (reports dated 9/18/98 & 12/18/98): very positive reports on CCA and very positive comments about the merger with PZN. Value Line is not in the investment banking business so their reports are considered to be more unbiased, independent, and objective than the reports of brokerage firms.
� PZN is the largest private prison operator in the U.S.
� In a recent article about crowded prisons (3/17/99) it was stated that "private prisons should continue to show 20 percent to 25 percent revenue growth annually, even though the industry has slowed recently due to investor nervousness over mergers, public oppositon and other political factors".
� At the present time private prison operators, as a whole, control less than 4 percent of the country's jails and prisons in the U.S.A. so there is significant and substantial growth potential beyond this point.
� The nature of PZN's business is such that PZN often uses the investment banking services of several brokerage firms who, through their positively-biased stock reports, can be "cheerleaders" for the stock.
� Estimated 3-year FFO growth for PZN is 15%. With earnings (FFO) for this year estimated to be around $2.64 and a growth rate of 15%, PZN warrants a stock price of $39. Looking out ahead two years from now (Fiscal year Dec. 00) its earnings are estimated to be $3.00 which would justify a stock price of $45.
Its my personal hope that god forbid private prison revenue increases by these numbers that people seem to pulling out of thin air. That the political and personal opposition to this industry grows at double or triple fold to these earnings
Right now, the economy's in terrific shape, unemployment is incredibly low, inflation's low, etc. When things eventually turn some day, crime will rise, there will be a public outcry for more crime control and prisons, and PZN will be there to build prisons and lease them to governments, who can always staff them with government prison guards to satisfy those who are against private prison guards. PZN is a REIT, not a prison management company, which I think is more politically acceptable.