Has anyone seen one of these yet?
Baby Doc say they had to distribute a prospectus
before the dividend could be paper?
reached the drop dead date for getting a prospectus out
and declaring a year end deadline?
If we are
not getting a prospectus, it seems to me that
eliminates certain possibilities, one of those being a paper
Whatcha think crew?
In the past I've been able to get reasonably
reliable info regarding PZN from credible sources. Not
this time. The silence is deafening. Give the recent
price action one would have to bet that the news is not
likely to be great but who the heck knows? One thing I
have learned is that an announcement will be made in
the next 2-3 business days on the SI situation and
that PZN has a few proposals on the table. The Bureau
of Prisons contract decision will be announced
within the next 30 days.
It has been debated on
this board whether PZN needs an SI but I don't think
there is any option. PZN has about $100MM left on its
credit line and is rapidly burning cash. PZN and CCA
need a a lot more than $100MM and $25MM, respectively
and yet the dilution could be nasty. I know that I
very much underestimated the operating leverage
inherent in PZN/CCAs structure. PZN has gone on a building
rampage over the last 12-18 months and yet its occupancy
has fallen to the low 90s. It's clear that PZN/CCA
need occupancy as close to 100% as possible to support
its cost structure and feed its debt load. Building
spec prisons like Cal City and then watching them sit
empty is a killer. That's why the BOP contract (for
more than 3,000 beds) is critical and makes you wonder
how an SI could move forward without knowing the
outcome of that award. As far as the bank credit
agreement is concerned, PZN is not in violation of any
covenants while for CCA I'm not really sure but if they are
we will hear about it shortly. I really think that
for PZN to survive and prosper they need to announce
a big equity infusion to enable them time to boost
occupancy and get the cash flow up to its full potential.
If PZN has to pay the special in paper and then
loses the BOP contract I don't see how they will have
the cash flow to sustain themselves and fear the
stock will head much lower still. De-reiting is still
possible and may make sense in the long term but will lead
to huge selling by yield investors in the short
term. Wow, I never would have believed it would get
Regarding comment: 3) EPS "games" can be played
between OPCO and PZN for Q4 (to reduce PZN's Q4 EPS).
This can be generally true under GAAP or financial
accounting, especially if it is downward as GAAP in very
conservative. But, you are dealing with TAX, and the IRS is
very aggressive in ensuring earnings are stated at the
highest levels. I believe FFO is referenced as a
guideline and may be used for dividends, but the underlying
requirements are based on TAXABLE Income.
Investors relations voice mail indicates
something like if you are calling about the
they haven't met yet to determine the amount of the
next dividend. I think everyone is panicing thinking
the stock is so cheap because the dividend will be
repealed. Any guesses if it will be 0.55 or 0.60, and the
ex-div date will still be Dec 14?
The covenants of financial sanity...ouch.
My tax guy thought I was smoking crack last year
after looking at some of my "reducing my cost basis
strategies". This year he'll call in the patty wagon fer sure.
I would think the institutions would get together
and unseat the board, and thus get new management in
place. The descision to go REIT didn't turn out well, in
retrospect, but I was aware of the risks and I held on to the
stock. No one to blame but myself on that one, but the
lack of communication on the part of the officers is
inexcusable, as well as the conference call with no Q and A.
These guys are obviously in over their heads. All I can
do is vote "NO" on all my shares each time an
election comes up. That won't do any good but make me feel
However, the institutions that are in this thing have
surely got the votes to put someone in management with a
little credibility. The business model is still working,
but I am afraid that that no one wants to put their
faith in such weak management.
How bout it,
Tannenbaum and you institutions!!
Make some friggin
Instead of trying to figure what is up on the big
picture, almost everyone is caught up with dealing with
details that dot matter much at this point.
anything like it. This board and co. is a real puzzle.
More like some kind of movie about Yahoo board. I cant
beleive the majority is not realizing what is going on
right before their eyes and cant figure what is
The sad part is that even warned, they
keep on getting hurt as the drama unfolds.
may be too smart to understand simple things. In a
nutshell PZN IR says nothing because they have nothing
good to say. If they say anything it will be bad and
they try delay it as much as possible to Xmas when
people are in vacation. Dont you guys get
No CEO would let the price drop like this if even a
neutral news could be put out.
The stock tanks
steadily and regularly as professional investors come to
their conclusions. No panic here Just heavy steady
bleeding, The worst kind that should hint the most
And then, some are even buying up!!! Unreal...
Does it seem like we are more concerned about the
arrangement of the deck chairs then that the ship is going
down. All this talk about the "dividend" for the last
1000 messages or so does nothing but piss people off.
The only message that means anything will come from
"DOC" and he isn't saying anything. I am sorry, but I
am totally pissed off. I do not have the luxury of
selling for the tax loss because all my shares are in my
IRA. I apologize for ranting.