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  • avi29 avi29 Oct 28, 1999 12:10 PM Flag

    NewMK and Abadaba7

    Just because other people on this board are
    idiots doesn't mean I have to be one, so I am happy to
    share the little that I learned. Perhaps "valuable" was
    a slight exaggeration, as she probably didn't tell
    me anything she didn't tell you. The one bit of
    info. I got was that she virtually guaranteed me that
    PZN will pay the special dividend by year-end and
    maintain its REIT status - whether the dividend is cash or
    not remains to be seen. There was some speculation on
    this board that PZN might forfeit its REIT status and
    re-merge with CCA. She also told me it is unlikely that
    the Nov. 10 earnings release will have any info. on
    their year-end plans. She implied late November to
    early December as the period where the big news will
    come out.

    Doctorlaszlo, can you give me your
    opinion...If no strategic investor is found and PZN pays out
    the dividend as some form of preferred stock (which I
    think the most likely scenario), what do you think will
    happen to PZN stock?

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    • my understanding is that Doc has SI proposals in
      hand, but I wouldn't be unhappy if he told them all to
      take a hike and paid the special in bonds. But he
      won't. He'll have us all bent over the barrel for the
      big dilution, and then we'll be paid (so will he). It
      only lasts for a few minutes anyway, and then it's
      over. But they will probably leave us dangling in the
      wind (sorry about the mixed metaphors, folks) until
      the last minute -- now I know how Guy Fawkes felt
      going up the ladder to the gibbet, with a choice
      between a broken neck and being sliced and diced. No easy

      But Avi29 (to quote General Turgidson) "If -- if" Doc
      has no SI at the crucial moment and we get preferred,
      I am as confused as the next guy. To quote Lil
      Abner, it would be "confoozin but not very amoozin." I
      think there would be a short-lived drop in the price of
      the common until the market sorts out the terms of
      the preferred, and then sort of back to normal and
      the stock behaves like a junk bond with a very high
      yield. I'd say back to 13 or 14, provided the occupancy
      numbers are okay. But what the hell do I know -- I bought
      this stock in the high teens.

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