Last time I checked, PZN had a classified board,
meaning only a third of the members come up for election
each year. It takes two rounds of annual elections to
achieve a new majority and three to completely replace
This subject comes up every so often on this
board, and I always feel compelled to respond because I
do corporate governance work for a living . . . It
is true that shareholders can do a lot oif properly
organized and the internet has the potential to make such
organization a lot easier. However, it is not so easy to oust
a board of directors. Number one, you have to find
credible people with industry experience to run against
the current board. This, in my experience, is the
largest hurdle. Most people with day jobs are not up for
the vast time commitment of launching a proxy
contest. Second, it's really expensive for whoever
sponsors the dissident slate. Legal fees, solicitation
expenses, even just printing and mailing proxy
materials--costs tens of thousands of dollars, at a minimum.
Finally, you could withhold votes from the management
slate (a "vote no" campaign), but such efforts often
don't even get tabulated due to stock exchange rules,
so the current board never gets the message.
Most posts focusses on how great the industry is
and how cheap this co. is and how undevalued the REIT
are, and how great the DIv rate is.
not focussing on the lies, deception and gross
incompetence of management. I am not sure why.
whatever reason most do not seem to understand that the
main reason for the unstopable dive is that
professional investors will not deal with a management like
that. No matter how cheap it goes. This managment is
too high risk for big money. This management is shot
and the little guys like us are paying the
The sad story is that all the small investors
toghether represent a formidable power and influence is
organized properly such as forcing a vote outcome on the
proxies. But I dont see it happen.
Meanwhile I am
looking for an exit point because there are many other
stocks with good prospect, high growth and high return
and reliable management to choose from.
should I continue to suffer with this? The pain must
stop becasue I do not see any end in sight unless the
investors demand a managment takeover.
I have nbeen
very stupid not to sell to the offer that was
circulating earlier via mail. Some investment co. bought the
share above $8. They thought they had a good deal
too... Well now they are sitting on some losses and the
smart one are the one who sold.
As long as the
Crants are driving this, I may go into shorting to make
up some losses because this stock will drift until
I'm home again after 17 days away and read your
old message re voting board out. I tried twice to c
if any interest on this board to use the NEW power
of the internet to organize and throew the bumbs out
and not any support except yours. It's as if peoppl
are shell shocked and are unable to take action. I
will catch up with messages now.
<<Besides the tax liability that would be
incurred and the re-structuring costs, PZN would also be
in danger of defaulting on some of its loans since
they were provided on a REIT basis.
option could be for PZN to drop Doc's companies (i.e.,
the CCA brandname OPCOs) and become a real
I have to disagree on both counts. I think PZN's
lenders would be thrilled with a de-REITing scenario, as
the taxes due would be less than the dividends due
and there would be no required dividends going to
shareholders (instead of providing cushion for lenders) in the
If PZN drops CCA, CCA simply declares bankruptcy,
renegotiates all the leases with PZN down significantly, then
captures the lion's share of any profits generated by
Besides the tax liability that would be incurred
and the re-structuring costs, PZN would also be in
danger of defaulting on some of its loans since they
were provided on a REIT basis.
could be for PZN to drop Doc's companies (i.e., the CCA
brandname OPCOs) and become a real REIT.
Indeed, new lows begat new lows.. Wish I could
remember that lesson, would save me a lot of capital.. No
one ever knows the low until it is no longer the
low... Moral, buy stocks hitting new highs!