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Corrections Corporation of America Message Board

  • pruman98 pruman98 May 20, 1999 12:13 PM Flag


    I believe the major reason for the decline in
    share price is the increased cost per bed that PZN must
    pay to Correction Corp. that was announced last
    Friday. An increaseto $4,000 from $840 per bed is not
    This also shows the lack of trust shareholders can
    place in managements announcements.
    However, now
    that the news is out what affect wilthis have on the
    bottom line? What was the FFO prior to the announcement,
    and what is the projected FFO considering the higher
    costs. Is the FFO high enough to keep the dividend safe?
    Is the FFO per share expected to grow? These are
    questions that must be answered in order to determine the
    value of this stock.
    Please let me hear feed back
    from anyone who has answers to these questions.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 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

      • 1 Reply to Reitmaster_98
      • 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.

    • These postings have been great discussions in the
      real world of value. Compare what we're talking about
      with the crazy world of internet companies where $1 in
      per share sales with losses equals $100 plus in
      value. Now if we could just figure out a way to make PZN
      an internet company we'll all be rich.

    • How can anybody read the FALSE accusations and
      not believe the critics stand on firm ground when
      they question the credibility of PZN mgmt and their
      quality and their method of operation and disclosure to
      FINALLY disclose about the huge cash outlays PZN has to
      pay CCA-THis is one time when the analyists are right
      PZN Had A BIG INSTITUTIONAL ownership and NOW will be
      left with a small player crowd who will brainwash
      themselves and try to brainwash others into believing this
      crap about what a good investment PZN will be. All the
      symptoms of a bunch of dividend hounds trying to justify
      keeping PZN in their retirement accts

    • FFO for 2000 $2.98....Earnings growth projected @
      Consensus broker recommendations > Moderate Buy..
      has plans for expansion in Europe,Australia and
      projects underway in USA...Check these facts for
      Money centrals premium service has a rosy outlook for
      the share
      price of PZN in $30-40 range...This is
      on the way ,don't expect
      the price to increase
      until the attack of the short sellers subsides...The
      BUNKO artist are at work spreading misinformation
      always DUE diligence is required and do your own
      I bought in recently and believe this is an
      excellant investment..

    • Monday May 17, 4:09 pm Eastern

      Company Press Release

      SOURCE: Law Offices of
      Steven E. Cauley, P.A.

      Fraud Lawsuit Filed for
      Purchasers of Corrections

      NASHVILLE, Tenn.,
      May 17 /PRNewswire/ -- A securities fraud lawsuit has
      been filed in the Chancery Court of Davidson County in
      Nashville, Tennessee on behalf of all purchasers of the
      common stock and other securities of Corrections
      Corporation of America (NYSE: PZN - news; formerly NYSE: CCA)
      (``Corrections'') between April 24, 1997 and April 20,1998 (the
      ``Class Period''). The lawsuit alleges that Corrections
      and certain of its officers and directors issued
      false and misleading statements regarding Corrections,
      which caused the price of Corrections' common stock and
      securities to trade at artificially inflated prices
      throughout the Class Period. The lawsuit alleges that the
      defendants stated that the formation of CCA Prison Realty
      Trust would be ``accretive'' to Corrections's near-term
      earnings, that Corrections would benefit by that
      transaction and that Corrections would be able to continue to
      grow its earnings at 40-50 percent annually. After
      these statements inflated Corrections's stock price,
      the defendants sold $19.1 million in Corrections
      common stock, at prices ranging from $35-$44 per share.
      However, on April 20, 1998, the defendants announced that
      Corrections would merge into CCA Prison Realty Trust, thereby
      becoming PZN, and as a result, that Corrections's earnings
      would only grow at 17-25 percent. Upon this revelation,
      Corrections stock and securities collapsed in price, and
      currently trade at approximately $15 per share.Analysts
      stated: ``(a)nalysts thought Corrections Corp. was
      growing at 50 percent, and now growth is diluted to 25
      percent,''and Corrections was ``not a growth story
      This lawsuit was filed by lawyers with substantial
      experience in prosecuting class action lawsuits on behalf of
      investors. If you
      purchased Corrections common stock or
      securities and wish to discuss this action on your rights or
      interests, please E-mail or
      call one of the attorneys
      listed below:

      Steven E. Cauley

      Scott E.

      Gina M. Cothern

      2200 N. Rodney Parham

      Suite 218, Cypress Plaza

      Little Rock, AR


      1-888-551-9944 -
      toll free

      SOURCE: Law Offices of Steven E.
      Cauley, P.A.

    • Don't waste your time. It's silly.

    • I am afraid this issue will be in single digits
      soon and will be there for at least a quarter. To
      often wall street throws the baby out with the
      bathwater. Look at PTEK in last 8 months - was 22 when I
      owned it, went to 2dollars and today is at 20. CPU was
      31 now 7, HRC was 29 then 7 then 15, then 9 now 13.
      To many good ones get thrashed because of surprises
      and fear. IF PZN can manage the downturn to its favor
      by buying back its own stock the cushion will help.
      Otherwise I am sorry.

    • In the next 12 months?

    • Are really down and dirty these days. Just got
      your report..."we base our analysis on sources that we
      deem reliable"....This is your due diligence??? As an
      advisor(granted in a low grade firm) to your few customers don't
      you think it prudent to talk to the company??? I've
      called you clowns in the past and you've never returned
      my calls. So based on that, Flipper_58 Advisors is
      lowering Paine Webber to a sell. Makes sense to me.

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