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Corrections Corporation of America Message Board

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  • Reitmaster_98 Reitmaster_98 May 20, 1999 12:28 PM Flag


    The dividend and FFO is unchanged going

    Call the company and ask them

    I bought more at $13 3/8 today, thanks for selling
    it off
    so I could acquire more at such a
    ludicrous price.....

    I will enjoy my

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    • Your right. But importantly understand that PZN
      will need to borrow to pay that dividend. They will
      not be able sustain the $2.20 through normal cash
      flow until 2000. Again the reason is the inducement
      fee is paid out to CCA but it does hit a one time
      expense at PZN, it's capitalized over a long period, so
      of course FFO changes by a small amount.

      agree this company is trading like it's going bankruot
      which I don't feel is the case as I too boought a lot
      fo shares in this week.

      We'll get our
      dividends, but watch the cash going out that is not included
      on a line item.

      • 1 Reply to flipper_58
      • There seem to be alot of people who are afraid
        that PZN may have to borrow to pay the special
        dividend. Sounds logical since none of us would buy stock
        with a credit card, right? Well, consider this: PZN is
        not paying the special dividend because they think
        their investors are "soooo special" and need some good
        lovin' to keep them on board. They are paying it because
        they have to. When they acquired CCA they also aquired
        the accumulated profits for the year for CCA - which
        according to the new REIT status - had to be returned to
        guess who... the shareholders. What PZN got the chance
        to do was spend CCA's money last year to invest in
        new capital expenitures - essentially borrowing our
        money last year interest free! What a great idea. Sure,
        they'll borrow to pay us back this year - but in the
        interim they have already effectively borrowed the money
        for a year interest free. They are already ahead of
        themselves. Bravo. Confucious says, " When hiking in the
        forest, don't lose sight of the trees."

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