Sun, Sep 21, 2014, 10:33 PM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Corrections Corporation of America Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • RetiredPaperman RetiredPaperman May 17, 1999 8:05 PM Flag

    A simple and elegant solution

    Interesting thumbmail analysis. I'm away from my
    home office so I can't do the analysis I'd like to do
    but mine would go something like this...Pre-merger,
    CCA was supposed to make something like $1.20 a share
    (adjusting down for the drop in communicated growth from 40%
    to 20%). PZN was about 1/4 the size of CCA so you
    can almost exclude them from the equation but if you
    choose to include them, it probably doesn't hurt my
    case.

    Take $1.20 and give it a pe of 25 instead of the
    previous 40+. A pe of 25 on a 20% grower would be quite
    conservative for this market. I think the S&P pe is about 28
    and growing under 10%. $1.20 x 25 is 30.

    With
    that cursury analysis done, my argument is that it
    ("it" being the numbers) doesn't matter. PZN has no
    choice. They might have pulled off the REIT if they'd
    operated flawlessly but the "mistake" is the end of the
    great experiment. Regardless of the numbers, the market
    has spoken. The stock is at $15 and going lower. IF
    the debt deal goes through, they'll still need to
    issue stock early next year and it's going to be at
    horribly low prices.

    Fortunately, they've run the
    actual operations side of the business pretty well,
    except for Youngstown. Otherwise we'd be at 10 right
    now.

    In summary, the numbers don't matter anymore.
    Credibility is zero and it can only be fixed by making the
    whole entity a public corporation. Lose the REIT
    status, PZN pays taxes at the lower corporate rate, I
    stop paying at 46%, the stock goes higher than it
    would otherwise. I'm afraid you won't find the answer
    to this one on your calculator.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • These new payments to Opco started on January 1.
      Not only the company did not tell shareholders and
      analysts then, it DID NOT EVEN MENTIONED IT DURING
      CONFERENCE CALL ON Q1 JUST A FEW DAYS AGO!!! Only the fact,
      they are going on the road peddling bond deal, has
      made them to come clean. HOW CAN YOU TRUST THIS
      MANAGE-
      MENT, THEN??!! And, after this all, Crants has the gall
      to give a lecture on the conference call. Have you
      heard the CONDESENDING MANNER IN WHICH HE LECTURED
      ANALYSTS ON WHAT IS FFO AND HOW IT IS COMPUTED?
      Another
      issue is Opco: where else can lessee renegotiate a bad
      deal so easily. Ops, we forgot to charge you for the
      start-up costs!! NOBODY TRUSTS THIS MANAGEMENT TEAM
      ANYMORE! And this "INDEPENDENT" BOARD, THAT FEEDS AT THE
      COMPANY TROUGH IS NO BETTER, IMO. And the most upsetting
      thing is, that this is very good business. It's a
      shame, that all these unscrupulous people are allowed to
      destroy good company.
      Many of you mentioned Litt
      today. I do not know, why are you fixated so much on
      him; after all, he and Cleo were THE ONLY TWO PEOPLE
      WHO WERE DEAD RIGHT ON THE FACT THAT THIS CONVOLUTED
      STRUCTURE IS WROUGHT WITH HUGE CONFLICTS OF INTERESTS! But,
      today
      Bradford downgraded(will they return IB fees), Legg, NBMO,
      FTU, all the BIG SUPPORTERS OF THE COMPANY THRU OUT
      THIS 12 MONTHS ORDEAL. AND ORDEAL IT WAS!!!
      There
      are no easy solutions. Management credibility is
      shot. But, to start:
      1. Reduce Doc salary to $1 and
      give him incentive options with strikes WELL ABOVE

      • 4 Replies to cleonew
      • current stock price.
        2. Fire genius Jr. and
        his lawyer friend, who concocted this convoluted
        structure. Let them go and play with their hedge
        fund.
        THEY ARE USELESS BAGGAGE, ANYWAY!
        3. Clean out the
        Board of those members, who work at the company or were
        given contracts or done business with the company, with
        TRULY INDEPENDENT MEMBERS.
        4. Consider merging Opcos
        with the PZN (and have bankers, lawyers and the Crants
        family reimburse the company for wasted corporate
        assets) or, at least, make ALL OPCOS DOCUMENTS
        PUBLIC.
        THIS FIASCO WILL NOT GO AWAY EASILY!!!

      • Enough Bulls**t about how "doc" can make money - I'm paying his excessive f***ing salary while losing 30% on my 'investment' in that SOB and his cronies.

      • Remember back in November when the posters on the
        CCA board mocked the AFL-CIO Office of Investment for
        opposing the deal, saying the reason they were doing so
        was because they opposed privatization. Guess
        again--the AFL-CIO's concerns about conflicts of interest
        and enrichment of Opco at PZN's expense are HAPPENING
        NOW and everyone here is wringing their hands about
        how they were duped.

      • pay back all those people who bought PZN at
        higher prices than today
        since it was your mistake or
        miscalculation or fraud or whatever you want to call it that
        allowed people to buy your stock at prices after your
        conference call
        IMHO
        management like this needs
        critics like me and other investors that vote with their
        feet

 
CXW
35.11+0.11(+0.31%)Sep 19 4:04 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.