Corrections Corporation of America Message Board
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reasons to (?) believe
Today's talk has given 6 reasons for the slump in
PZN:
Macro:
REITs are out of favor
small/mid-cap groups are
underperforming the market and failing to attract capital to
their issues
Specific:
Bad press
Ambiguity
about the future of
privatization
Confusion/dissatisfaction of stockholders about the changeover
Possible
IRS review of the REIT status
That's quite a
slew of reasons. I'm looking for a bottom and will
perhaps double my position. Yield of 13.38% (without the
special dividends or any regular dividend growth) and
moving in the direction of (and ever closer to) it's
52-week low while showing good fundamentals - isn't this
a VALUE play?
I do remember Doc said $50 by
year-end 99 and I wonder.-
to add "pissed off union struggling to stay alive".
- 1 Reply to pkn4mom
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In spite of all those negatives, including the pissed off union, it seems it wasn't just me who thought this was a value play today. Up over 8% at mid-day.
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If this stock is going to pay a special dividend
in December of ~$2, the price is going to drop at
LEAST $2 immediately thereafter.
In reality,
stocks drop MORE after the ex-dividend date as
shareholders hold for the dividend (or bought for the
dividend) and dump. There is a highly predictable price
decline coming in December.
AND where does the
money for this dividend come from? If this company has
to borrow or issue equity to pay that dividend, then
we are left with an entity with higher leverage or
dilution and thus it may be less attractive
thereafter.
These uncertainties are abhorent to the market. And
they appear fully justified.
I suspect if PZN
pays a $4.50 dividend this year as estimated
previously on this board, the price will be $10 thereafter,
when all the fundamentals decline. To overcome these
disadvantages, the company would have to show a significant
earnings improvement. -
Tonight (Friday night) on "Wall Street Week" with
Louis Rukeyser the topic for this week is scheduled to
be "The Real Estate Scene" which, I am assuming
refers to REITs.
www.multexinvestor.com is a
website where investors can download analyst's reports on
any stock for a fee. The fees can range from $5
(Standard & Poor's 5-page report) to $75. Most of the
reports that are available cost $10 - $20. I would highly
recommend this website. I've learned a great deal about the
prospects for PZN by downloading a few of these reports - I
now feel I have a much better understanding of both
the positives and negatives (risks) of PZN from
reading some of these reports. I found the Standard &
Poor's report ($5) to be very informative and also found
a report by Wheat First Union ($10) which was dated
1/19/99 to be quite informative as well......these
reports lay out the positive possibilities of PZN as well
as the risks associated with owning the
stock....solid information provided.....
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