" I have yet to hear any bad news from PZN and have owned the stock for 6 months."
Technically some of this goes back seven months, but just just to bring you up to date:
CEO Doc Crants and his son, Bob, held a quarterly conference call in May and disclosed signifcant cash shortfalls in their primary tenant, CCA, which would require about $90MM in unscheduled payments from PZN to CCA. Doc blamed it on a silly accounting mistake, but it was discovered later that CCA had operating problems (occupancy and ramp-up) which weren't disclosed.
A proposed $300MM debenture offering was scaled back to $100MM at near usurious rates.
The balance of the $1BB credit line was obtained at high rates and a $40MM fee, with a requirement that a Strategic Investor put in $100MM of equity (dilution) before a special dividend could be paid.
California passed a law that wasn't supposed to get passed - no out of state prisoners in privately run CA prisons.
PZN held an analysts' meeting and guided downward revisions of FFO.
Most analysts dropped their ratings on the stock; PaineWebber dropped twice, to unattractive.
The strategic investor hasn't materialized.
The Q3 conference call was "scripted", with no Q & A allowed. it was announced then and in SEC filings that CCA would not have sufficient cash to pay its bills.
The normal dividend declaration date has come and gone.
The company has given no guidance on what it is doing.
If none of that sounds like bad news, perhaps you think the drop from 22 to 7 in seven months was just a fluke.
I agree to what you said. But whenever PZN actually puts out a quarterly or another statement it usually is positive. The last quarterly they indicated increased construction, increased occupancy, ... They still maintain a debt to equity of less than 1. When they announce this dividend payment I would bet on good news and the stock to rise.