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Corrections Corporation of America Message Board

  • ewocfo ewocfo Nov 10, 1999 11:57 AM Flag

    Reality Check

    Occupancy is moving up (of course there is little
    capital for new prisons and the inmate population is
    moving up) This is good. No matter how you look at it.
    Supply and demand forces are still on Doc's
    side.

    As for this tax code job Doc just pulled. From what
    I understand Doc was hell bent on paying that
    special in cash and the banks took that ability away from
    him b/c they wanted the reit to retain capital. At
    least that's my understanding. Now Doc has found a way
    to pay his special in cash, and his regular at some
    point in the future (most likely in cash). Are the
    banks going to like this, and will this make getting
    funding any easier?

    This is not how you improve
    your credability.

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    • I missed the conference call (was listening to
      CEI's) but from reading the messages here, I think I
      understand what is going on with the dividend
      situation.

      PZN had previously stated that all dividends paid in
      1999 in excess of the 95% required amount would be
      applied to the Special Dividend. Now they have changed
      that. Now they are saying all dividends paid in 1999
      will be applied to the Special first and any excess to
      the 95% regular dividend.

      Thus, at three
      dividends at $.60, they have paid $1.80 this year. I didn't
      read anything about the 4th quarter dividend being
      addressed. If it is also $.60, that will make $2.40 paid
      this year. So, any amount above the required special
      of $1.82 or whatever, would be applied to the 1999
      regular dividends,.

      I.R S. rules allow this years
      dividends to be paid next year. Such dividends would have
      to be declared by Sept. 15, 2000 and paid by Dec.
      31, 2000. So, PZN could conceivably pay quarterly
      dividends next year equalling 1/3 of the shortfall for 1999
      and apply those to this year and continue paying in
      arrears since all of the required 1999 dividends would
      have been declared before 9/15/00 and paid before year
      end as required. Then start the same process for the
      following year. This would provide some time for PZN to get
      things straightened out.

      Anyone hear anything
      about the 4th quarter dividend?

      Other comments
      or corrections, please.

      P.S. They could have
      hired me to get this solution a long time ago. I work
      much, much cheaper than the investment bankers. :-)

    • Instead of sending in a check for my 4th Q
      estimated tax payment I'll just send this latest PZN 10-Q
      filing and tell the IRS to figure it out. Does anyone
      know if these 1999 distributions are ordinary income,
      capital gains, or return of capital? If the distribution
      of 1999 earnings is pushed into 2000 is there any
      tax liability in 1999? Doc has a little over 7 weeks
      to make ONE please just ONE good decision in 1999.
      Is there any hope?

      • 1 Reply to maddognight
      • Hey boys...it's been months since I read or
        posted here...Maddog you may not recognize my name if
        you are a recent poster...to answer your question..NO
        there is no hope for PZN..Doc ruined that company some
        time ago...and I decided last summer not to wait
        around for a payment that may or maynot take
        place...besides the payment wasn't going to equal the drop in
        stock price before it was all said and done and I was
        correct on that... I pulled out of this piece of trash
        and I would advise you to do the same.... If you have
        to take a loss so be it (I did)...that can be a tax
        write off to balance out the gains of your GOOD stocks
        in your portfolio...a dead horse doesn't cross the
        finish line regardless of how long you choose to sit in
        the saddle.BAIL NOW.... Doc and his crew need to BE
        IN A PRISON INSTEAD OF RUNNING THEM......if you dump
        this out of your portfolio you can actually have days
        in this market that you don't go to bed mad cause
        you still own it. Dump Doc and get into tech.market
        that's the real future.Well boys have a nice day..hope
        you all wise up..can't tell you how nice it is not to
        have the frustration of PZN on my back
        anymore.....XXXOOO Angel_kitty_1

    • i have been following co since its ipo and am a
      full time analyst. i am clueless about what was said
      in the doc and jr show. i sold half of my holdings
      midway through conference call. cute jr with his mba and
      shor goldman probably convinced dad to; convert cca to
      reit status and has convinced him that technically
      there is no time frame as to when an earned dividend is
      to be paid. maybe it will trade with accrued
      dividends. co mighgt be looking to sell out at a giveway
      price. maybe doc and jr could form a co to take it from
      us poor shareholders. that would be nice of them. i
      se cash flow dropped for q. not good. it looks
      estimates will be trimmed. they gave us bad news last
      spring and split for 2 weeks and now have a rercorded
      conference call with no q's allowed. they are hiding
      something. doc and jr have got to go.

 
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