Bid 99 no offer.
Pretty good considering
the junk market in the last few months.
IMO,
there was 1 critical issues that caused the bulk of
this stock decline. Occupancy and Doc not being up
front with problems there. Problems from Youngstown to
overbuilding. I see it as that simple.
Prior to the
bomb-shell in May, PZN was $22 and on the mend. The stock
price was quite arrcretive and we had a willing buyer
of $600mm per year at that accretive price. The
decline since that time only goes to show how vunlerble
REIT's are because of their outside financing needs. And
two, how the institutions will dump on you if your not
upfront with what's happening.
I attribute the
fall from $22 to $14 due to occupancy issues and $14
to $10 due to the REIT structure and it's need to
dilute investors even if the company does not want too,
the catch 22 we all have talked about.
The
REIT structure is grand as long as the investor
receiving the cash realize that part of the deal is they
must invest back part of that cash. If that does not
happen the REIT financing structures falls apart as I
see it. The only way out from a fall out as we have
experienced is internal growth, slow and painful,
IMO.
Converting back to the previous C Corp/captive REIT
structure makes obvious sense from a business
standpointpoint, from a legal one, etc....I don't know.
Can
PZN grow out of this mess?.....I would be interested
to see internal cash projections after the next
earnings report. CapEx were running at a clip of $700mm a
year. Since they can't raise debt and equity is too
expensive, I'll be very curious to see that number next
week. Some of the major tenant incentive fees should be
out of that number.