I originally bought this stock as a company
running prisons. In the course of about 2 years, the
company split off its REIT to have it double and then buy
the original parent company. Then I became the owner
of both a REIT and a runner of prisons, but lost a
lot of value, while management and the REIT holders
made a killing. Next they dissolve my runner of
prisons only to reinvent the company in the hands of
management and other investors. That "independent" runner of
prisons begins to lose money. So for ZERO benefit, Prison
Realty decides to basically give away money to keep them
afloat. Why do they do this, because management owns both
but the little investor does not. With the
"independent" runner of prisons hemoraging and bringing down
prison realty, management decides to bailout corrections
corp and give the investors exactly what they put in
at OUR expense. By my calculations, we are paying
these CCA shareholders 250% of their current value. Was
it because it would benefit Prison Realty. Heck no,
it was so they can bailout their buddies and cost
unrelated shareholders a fortune (i.e. us).
gosh sakes, can someone explain to me why we would
want to bailout CCA? Why can't we just hire Wachenhut
to run the prisons and let CCA collapse with the
Crantz and other greedy people.
Just a thought
Sorry for the late
""Exactly why has OPCO been losing money?
1)Occupancy, profitabilty per occupied prisoner is at a CCA
highest so the only answer is beds. Opco was set up to
break even at 95%, it has not been close to
2)25%-45% leases rates it must pay out. Gross operating
profit is about 25% if I remember.
rates have been increasing too. No one salaries etc.,
so hard to comment.
looked through the 8-K and did not see any rate talk
about the new revolver line. THis merger doesn't close
till the 2nd of this year so I think it's early for
them to state it publically.
of learning about Corrections Corp back when Doc
was named Entreprenuer of the Year by Ernst and Ernst
and CCA stock was in it's shining glory. I doubled my
money in the stock, but only had a couple hundred
shares. I was a Board Member of a subsidiary of US
Corrections, who was purchased by CCA. I learned a little
about the REIT deal before it was well known by the
investment community. I knew CCA was starved for cash
because of acquisitions and a massive building program.
This looked like a promising way to raise capital.
Personally, I was looking for income for retirement and I
thought I knew enough about CCA to take a position in the
stock. Doc tried to pull the wool over the analysts eyes
in May and it's been a slippery slide downhill since
then. If the new owners are honest, capable, and want
to bring the stockholders along with them, I still
believe the fundamentals are sound and private prisons
have a bright future.
I empathize with you. A few years ago, I learned
my great lesson about risk, and irrationally hoping
for the market to make me whole. I hope it is of some
comfort to you to know that I also payed dearly for my
education, but that it has served me well, and I have gone
on to be a successful investor. It was that very
education that kept me from buying PZN for its juicy
dividend. I hope you benefit greatly from your lessons
learned here. Godspeed. - MORE.
IMO, you have done a fine job telling the PZN
story. You are also "right on" that the market, and our
country, are controlled by greed. The stockholder has very
little protection. In time, this corruption is going to
take it's toll on the American economy. We have
improved our productivity and our technology, but moral
substance in the investment community has lost ground. PZN
is a classic case of just how many institutions can
take the stockholders money and get away with it. Not
much has been said about CCA's and PZN's auditors.
They certainly have not done we stockholders any
There are going to be more chapters
to this story. The lawyers will be next to take a
big chunk of our remaining change.
the pendulum swings back in the other direction.
Of course, the bottom line is, in my case, my fault.
Nobody was holding a gun at my head making me stay in. I
have acted like a loser at a crap table, "hoping"
(irrationally) that the stock would come back and make me whole.
I've paid for an MBA in what I've lost in PZN. I hope
I can retain the lessons of this experience.
points. Sounds like your talking every one
get out. Probably should have when the recovery from
9 (last bottom) faltered.
Getting out now
would be senseless.
It is at the very
Maybe started talking about what is good about this
company NOW. Would this be a stock to buy
if you just
saw a possible turn around?
I did sell some
of my position about a month ago. Invested in eweb,
has done great and
looking for a pop next week.
If new management can show
valuation and answer
questions, we may see some
So how about some positive posts equal to negative
ones. Thats why you are still here!
You do indeed get a sofa, just not the one your
thought you wanted.
You can attempt and sue the
company. Go ahead. Its your right. However, if you had
researched the company and were indeed a "REITMASTER" you
would have realized that you were buying a growth
company wrapped in a high yield blanket. The business is
not changing and really your investment hasn't
changed except you aren't going to get your share of the
profits in dividends but rather in the form of capital
Go ahead and sue and see how far you get with your
it does not matter anymore. I have tried to tell
you before the news was out that there would be no
cash payment. It was pretty obvious as the price
dropped with high volume and the yield increased to
Unfortunatly, you brushed the comments
off hoping for $10. You got to accept the fact and
live with it. Just realize your mistake after the fact
if you could not do it before the fact.
truely understand how you feel betrayed. But that is WS
world. Nothing you can do but save yourself and don't
ever trust ANY CEO or Co. that have not kept their
word on prior occasions.
Now, I beleive the
suits will just florish and get consolidated into a
pretty big one. Will last long and ultimatly acheive
nothing if you owned the stock (kind of suing yourself).
I will support the suit. I am out and I just, like
you, find what happened should not go
Also, this mess is far from over and even if SI got his
way, the de-reit will hit the new compnay pretty hard.
Do not expect any return in 2000. Instead it will
get worst as this co has no confidence from high
For your own piece of mind,
just find another company you can trust and invest
there. Their are plenty. You seem to do some homework
that usually pays off with straight forward management
teams. Get some techs or HD or COSTCO and let others
sink their health and hard earned money into that
Titanic. You will feel better and wealthier in 6
I reinvested the little PZN money left into some
high growth techs and recovered quite a bit. Got HLIT,
QCOM and about to get SONE starting 2000.
do you expect getting by beating a dead horse? For
your sake dont make bad decisions after a bad decision
hoping that will make it right.
Exactly why has OPCO been losing money? What is
OPCO doing wrong that is causing it to lose money?
This part of the situation I don't understand. You
seem to be knowledgeable about such matters, so I
figured I'd ask you this one last question. Thanks in
advance for any comments you may have about this matter.