An astute investor will refrain from laughing at
the recent ridiculous posts concerning a potential
bankruptcy of PZN. No doubt there is blood in the Street
(some of it, sadly, mine), but the sort of blind panic
represented by some postings is only an indicator that
notwithstanding PZN's warts, the current price of $7+ represents
an incredible opportunity. In September, Dreman
thought it was a cheap stock in a cheap sector. That was
at $13. The sector is substantially cheaper now, and
so is PZN!
Now I know where that sick feeling in my stomach
is coming from! I totally agree with you about the
tech stocks - and most of these companies have YET to
make a profit, but the analysts just seem to love
I guess I'll remain on the sidelines and hope for
better returns in 2000. Good luck to you, myself, and
all other PZN longs.
that these bozo's could dilute the hell out of us
shareholders by giving a stratigic investor a great deal.
Management is participating in mental masturbation by making
a simple solution complicated. Issue a bargain
security to existing shareholders in lieu of a cash
dividend. That way existing shareholders will not get
diluted. Anyone who wants cash can sell the bargain
security. If management makes it juicy enough, maybe the
sellers will even reap a gain.
"I do agree that it's too late to deREIT it this
year. I would think there would need to be a vote and
we're out of time."
Not by a long shot. With the
dividend switcheroo, PZN effectively has until 9-15-00 to
establish its REIT status for 1999. Condition 1 is making
sure there is no leftover CCA E&P at 12-31-99, and it
will be easy to have accomplished
Condition 2 is declaring the regular dividend for 1999 by
9-15-00 and paying it by 12-31-00.
That would give
them plenty of time to get a prospectus out, either on
choice of securities for the dividends, or on an OPCO
merger and de-REITing, effectively retroactive to
Having said all that, and regardless of what we think
makes sense, I would guess that Doc still is in control
and will continue doing all in his power to keep the
present structure intact.
Not sure I'm following you. If they paid more
than taxable income this year, balance would go toward
the special dividend or visa versa with no income
I still can't see how PZN could
not be a REIT for this year. It would REQUIRE a vote
to do otherwise. The ONLY option I can see would be
for a vote of the shareholders next month with a
decision whether or not to be a REIT for 1999. With such a
vote, PZN would still be liable for income taxes on all
1999 taxable earnings regardless of dividends paid.
Without a vote, despite what some others may argue, I
don't believe PZN can remain as a "C" Corp for 1999.
They would just have to pay penalties for not making
the distributions timely.
What is the worst case scenario here????
pay special in securities and use expaned
line as needed to grow business.
I don't see a
company earning $2.00+ in FFO
going bankrupt. Maybe I
am wrong and missing
something, but I just don't
Anyone care to answer?
Since PZN has probably already paid out more in
dividends than they have had in taxable income (depending
on how you calculate net income, considering OPCO
eating losses), isn't it accurate to say that they've
not really received a full tax benefit from the
dividends paid this year? Don't know if I'm making sense
but I'm trying to point out they this year it appears
their "deductions/dividends" will significantly exceed
what their taxable income would have been.
not sure it matters, other than to confuse an already