What is the potential for a corporate raider to take over PZN and sell off the OPCO leases ? It seems to me that every prison PZN is involved with is undervalued,based on the current stock price. I believe convincing arguments could be made to state governments to buy back their leases and issue bonds at a rate that would give them a much lower capital expenditure rate than they have now. I realize the bonds would adversely effect the states' bond ratings and the public would complain about it, but their is no question in my mind that the prisons owned by PZN have a greater value than the stock. Do the leases with the states, the loan agreement covenents with the lenders and bond instruments address this question?
I seem to recall something about the REIT bylaws that make hostile takeovers difficult. I'd have to do some research to figure it out, but maybe someone else could help.
I posted last week that if I could raise the money, I would buy every share of PZN, leverage it up, pay myself a huge dividend, sit back for a few years while it cash flowed away the debt, then sell it for for a few billion dollars profit.
Well, I can't raise the money, but Doc is surrounded by plenty of folks who can. Sodexho, Massey-Burch, Baron Capital, HSBC and so forth. Those of you calling for Doc's resignation will see this company go private first. And before that happens, Doc will no doubt do everything he can to vindicate his strategy. Might be able to, might not. At some point though, in Doc's words, it falls in the category of "life's too short".