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?
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 answers.
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.