Another stock I have owned on and off (FEET)
filed for bankruptcy today due to liquidity problems.
Book Value was somewhere in the $9.00 range. I'm not
making a direct comparison and am very long PZN, but
thought it interesting that a stock with so much supposed
book value could file for bankruptcy.
Cash Flow is most important but it can be
difficult to calculate the real number. That's why PZN's
stock price looks low relative to traditional
measurements (FFO, Book Value). What really matters is that
PZN is not generating sufficient cash to pay the
dividend. They are borrowing.
The nice thing about
cash flow analysis is that it tends to cut through all
the accounting nonsense and games that company's
Still think Book Value is important? Look at Dell's.
It's just over a dollar but their earnings, cash flow
and growth are great. JMHO.
<<<Also, of the top 10 institutional
holdings, they own about 30 million shares all purchased on
6/30/99. YES, that's 1999. After the transaction happened.
If they were going to sell and take their losses,
they would have done so prior to now for tax purposes.
All bought on the exact same day, huh? Sounds like a
conspiracy to me. :-) IMPORTANT: This is a joke, this is
only a joke, do not try to duplicate this in your own
That's just from a holdings report. They may have owned
these shares for years or they may have sold them all
last month! We do not know what their current holding
So, to put out such hype to try to
raise the price is no different to me than a short or
union shill coming in here trying to drive the price
down. Most of the people here know better.
majority of those on this board are all simply trying to
share information to be better informed about our
investment decisions. Few of us are in a position to make a
hill of beans difference in the eventual price of PZN.
That will be determined by the institutional buyers
and sellers. So, unless your motive is to pump and
then dump this stock, you're wasting your time.
Well over a year ago, sam, and a few times since,
I mentioned that it was disingenuous of Doc to hype
the tax benefits of being a REIT, and so it is for
From a company (i.e. pre-merger CCA)
standpoint, they were paying tax at a 25% rate, and were
publicly proud of how low it was. Yes, the REIT now saves
that 25 cents, but they have to pay out a dollar to
save it. Not good from a corporate cash flow
In fact what is even more stupid, to qualify for
that wonderful cash flow scheme, they have to pay out
accumulated earnings which have already been taxed, and
subject them to tax again in the shareholders' hands. And
where do they get the money to do this, when the
earnings are invested in bricks and mortar? The dreaded
double Ds: Dilution and Debt.
This stock is going
nowhere as long as Doc remains in charge. After that it
might go somewhere, but not far, as long as it is a
REIT. In the meantime, keep thinking positive!
Regarding institutional investors, I'm not sure
the new guys are the kind to stick with this company
for very long. They represent an overhang that could
be a problem in the future. CCA used to enjoy a
stable long-term group of institutional owners. But many
of them are gone, and more may follow.
The recent purchase by Dreman and the Scudder
fund are confirmation of your post.
Keep up the
positive side. We need balance and this thread has been
Please be careful and be
rational, for you will be accused of taking mood
The bewitching hour is upon us....Earnings report due
11/10 or in there, somewhere....
Help me here. The special dividend is a one time
event. And if it is paid in paper, they dont have to
borrow to pay it. Especially if it is paid as a zero
with warrants. After the special is paid, and the
dividend is cut back to the 1.90 - 1.80 minimum range, the
cash flow into pzn (net of fees back to CCA) will be
sufficient for the dividend. The depreciation alone will
service the fees back to CCA.
With this said, I
dont see what the big deal is. Pay the special however
you wish, lets move into 2000 and be done with this
nonsense. In 2000 there is more than enough money to go
I'd love to see some fundamental positive news
posted on this board. Problem is, there isn't any. Trust
me, if there was positive news PZN would get it on
the message board.
IMO, on an irregular basis,
MK develops a post explaining the
fundamental/structural problems we face (REIT capital raising structure,
Doc credibility, etc.) While some of his points are
somewhat subjective, most are factual. Nobody ever posts a
factual retort because there isn't one.
As far as
citing the top ten ownership list of CCA as proof of
anything, it's instructive to realize that every stock has
a top ten list of owners.