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Corrections Corporation of America Message Board

  • flipper_58 flipper_58 Dec 22, 1999 3:39 PM Flag

    Payment of the dividend

    If the $300mm amount is true why pay out $220mm
    of it for dividends, that would leave only $80mm
    left to finish projects and straighten out it's
    balance sheet. Doesn't make sense when they could pay
    $90mm in taxes and fight a few court battles IMO.
    Converting to a C Corp ASAP allows them $210mm to finish
    what's out there and fill the beds plus ramp up charges.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • reograndpa , you are one big idiot, you are
      talking out of your a--- this company has been around for
      the past 15 years. Your statements sound like someone
      who feels threaten by companys that make gov't look
      bad. You must be a river rock collecting a paycheck
      and doesn't like change. So get over your fear.

    • How many millions did they earn for fairness
      opinions that were dead wrong. How much is Merrill Lynch
      getting for the 300 million? And by the way, didn't Doc
      turn down additional credit a few months ago because
      it was too expensive? Now how much is it costing the

    • Truth does hurt sometimes, Im afraid you are about to feel how much it hurts, In your pocket book.

    • Pzn has their hand into the food industry which
      supplies food to the prison system also, funny you should
      mention food.
      I am waiting for pzn to finally lay
      down and die, which I feel is very soon, they have
      already layed down, just waiting for their heart to stop

    • Truth hurts. Back to solitaire game.

    • your head up the private bozo's crooked ass, and take your crooked money with you.
      Your problem is, you are in too deep, there is no way out, dont matter how hard they try.

    • Yes I know, Im not a union member, nor have i
      ever been,I do however work for the prison system, and
      in my state pzn has been a crooked mess from day
      A laughting stock for the entire correctional
      bought and paid for politicans, the best money can buy.I
      wonder what our forfsthers the founders of our great
      country would say if they could see the mess our country
      has come to, when dealing with big money industries,
      such as pzn is, or was.
      ever wonder what happeen to
      this company, besides trying to grow too fast, greed,
      and failure?
      There are a few honest people in the
      world which their money cant buy, few, and far between,
      but a few.

    • Remaining a C-Corp (that is declining the futile
      effort to qualify as a REIT) is probably the sanest
      thing that can be done now that it appears the REIT
      strategy has failed.

      The fundamental flaw all along
      has been the notion that this company can grow on
      debt financing while paying out dividends to the
      shareholders. Obviously the markets have said this isn't going
      to fly.

      Given the way this has played out,
      the Blackstone scenario, along with most of what
      Paine Webber is suggesting, is the tough medicine
      needed to save the company.

    • I know the Board doesn't want to hear this but
      I'd ask you to do one thing - look at the situation
      from Blackstone's perspective. Why in the world would
      you even consider putting $300 million of capital
      into PZN to allow it to pay other shareholders (and
      some right back to Blackstone, which they wouldn't
      want. Put after-tax dollars into PZN and then withdraw
      a sizeable taxable dividend? duh?) a dividend and
      only have $80 million left for the PZN to use for
      building. $80 million won't even finish the projects
      they've started so they'd be right back into the debt
      (probably at 15%) or equity (at $6 a share)

      Whether your wanted the dividend or not (I did) you must
      agree that given the present circumstances it simply
      would not make sense from Blackstone's perspective and
      since they are writing the check their's is the only
      perspective that counts.

      Besides, what really counts
      for income and all investors is getting the share
      price up to a higher value. 2-3 months ago the price
      was $13.5. Wouldn't we rather try to get it back
      there since we're at $6. Look at it this way, that
      whole move back from $6 to $13.5 represents a 125%
      NON-Taxable return (assuming your cost basis is 13.5 or
      higher). It would take FIVE YEARS to get that return back
      with a taxable annual $2/share dividend.

    • If they go to a C-Corp, stock will plummett
      $3-4. Dividend investors will flee and
      Doc and Doc
      jr get a nice payday.
      FORGET IT.

      I WILL

      • 2 Replies to bidupbid
      • from the stock going to 3-4?

      • As I told you 8 months ago this stock was going
        to $5!!! ANYONE who bought this stock for the
        dividend should not be investing in the stock market!!!
        Whenever you see a stock yielding 15% or more something is
        wrong!!! Doc and BabyDoc have loss a combined market cap
        of $6Billion in less than two years. Anyone heard of
        Sirrom Capital. This company will not pay any dividend
        PERIOD!!! Why would a new investor put in $300MM to give to
        existing shareholders? GET REAL!!! NO DIVIDEND I don't
        care what the existing management has told you folks.
        IF there are any investors who bought this stock for
        dividend they deserve to loose their money. Or perhaps I
        can sell them a certain bridge up in Brooklyn!!!

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