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Corrections Corporation of America Message Board

  • ewocfo ewocfo Dec 8, 1999 4:31 PM Flag


    Has anyone seen one of these yet?

    Baby Doc say they had to distribute a prospectus
    before the dividend could be paper?

    Have we
    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?

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    • 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
      this ugly.

    • I've been very successful.

    • 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.

    • But one reason I love trading on the internet (as the joke went in Barron's) nobody knows all your stupid mistakes...ssshhhhh.

    • 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.
      Never seen
      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
      blinding them.
      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...

    • They are not returning phone calls.

      I do maintain that there is fundamental value
      here but I disagree with how the company has
      handled this decline...

    • 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.

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