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.
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.
The dividend and FFO is unchanged going
Call the company and ask them
I bought more at $13 3/8 today, thanks for selling
so I could acquire more at such a
I will enjoy my
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
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
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
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
Steven E. Cauley
Gina M. Cothern
2200 N. Rodney Parham
Suite 218, Cypress Plaza
Little Rock, AR
SOURCE: Law Offices of Steven E.
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.
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.