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Corrections Corporation of America Message Board

  • tmacker tmacker Nov 13, 1999 3:26 PM Flag

    ? for the experts

    according to the November 10th 10-Q:
    "At
    September 30, 1999, the Company owned or was in the process
    of developing 51 correctional and detention
    facilities, of which 40 facilities were operating,
    eight
    were under construction or expansion and three were in
    the planning stages, with a total aggregate cost of
    $2.3 billion. At September 30, 1999, New CCA leased 32
    facilities from the Company, governmental agencies leased
    five facilities from the Company and


    >>>private operators leased three facilities from the
    Company.<<< (emphasis added)

    The Company expects to
    lease six of the facilities under construction or
    development to New CCA."

    Anyone know who these
    'private operators' are?

    Too Many Anonymous
    Convict-Keepers Expect Rewards

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Your absolutely right, I thought about that after
      I hit the "post" button.

      Stock quiet today,
      little activity either way...no large bidders in sight,
      but they don't seem to show up till $9 even.

    • take a public company private at a bargain price,
      fix it up and then take it public again, you can get
      very rich. LBOs still work if the price is right.


      Nonethelss, I don't think that is where we are headed.

    • I've been working with someone over the last year
      selling their private business. Private business are
      valued at a faction of public ones these days. The VERY
      rough rule of thumb is 4-5 times cash flow for smaller
      businesses. Forget raising money easily too.

    • This wait and recover is where I am . it's better
      to wait and recover your losses than take a 50% hit.
      Of course I think we can.

      This was my safe
      bet, well I wish I stayed hi-tech...

      I bought
      for the yield hoping it would continue
      and grow.
      What if pzn remains a builder of prisons and
      establishes new relationships outside of OPCO ? They could
      build for the county, state or fed. and let them run
      the prisons. They are building in Europe and
      Australia as reported at their site. Let the goverment
      agency finance the building.If this sounds like i'm
      getting confused your right!

    • Tmacker, there are actually three facilities
      leased to two private operators - one facility in
      California leased to Cornell Corrections, and two in Texas
      leased to "Community Education Partners", whoever they
      are.

      Idontwanttohearit and others - Doesn't converting back to a C-Corp
      at this point actually conserve capital? If what we
      understand to be true is true (which is always a big if with
      these guys), none of the regular REIT dividends for '99
      has been paid. This means that the company has to pay
      out dividends next year equal to 95% of '99 net
      income. If they convert back, the most they have to pay
      out is 40% or so of '99 net, maybe a lot less if
      OPCO's losses reduce taxible income
      dramatically.

      Of course, we shareholders get screwed again, since
      our company's money goes to the IRS instead of us.
      But at least in that case they are using funds that
      they have rather than funds that they are borrowing.

      • 2 Replies to mrar_papa
      • I don't know why all of you are talking about
        converting it back to a c CORP.Read between the lines in the
        press release, these crooks are teaming with acapital
        partner and taking it private at fire sale price,which is
        what their intentions were all along.

      • I don't think there is any doubt that c-corp
        conversion would preserve capital. You are
        correct.

        But there are downsides. I still believe lawsuits
        would be inevitable, and this company better obtain
        sound legal advice before such a move. And, as you
        mentioned, paying out money to the IRS, after all we have
        endured, sorely rankles. The adverse short-run effect on
        the market price of PZN would surely dwarf anything
        we have seen so far (see PAH chart for an excellent
        example).

        I'd STILL like to hear some opinions on the
        feasibility of maintaining REIT status for 1999, but
        converting for 2000, so as to end the long-term drain but
        preserve short-term stability and credibility. Perhaps
        such a move would be acceptable to bankers and
        investors?

 
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