Corrections Corporation of America Message Board

RESEARCH ALERT - Wackenhut Corrections
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NEW YORK, Jan 11 (Reuters) - Warburg Dillon
Read said Tuesday analyst Thomas O'Halloran lowered
estimates and price objective for Wackenhut Corrections
Corp. <WHC.N>, explaining the company recently
guided investors to lower earnings levels for the fourth
quarter of 1999 and all of 2000 in light of higher
operating expenses, larger start-up costs, and slightly
lower revenue.

"Our estimated 1999 EPS from
operations has been lowered to $0.94 (from $1.00) and our
2000 EPS estimate goes to $1.00 (from $1.20)," the
analyst wrote, setting a new price target of $15, down
from $24.

The stock closed Monday at 10-1/4.

wouldn't we be a private company? I don't see how a private company can purchase a Listed company and end up being a Public company, unless OPCO then did an IPO.

I mean no disrespect, but does anyone really
know: 1. how action can be taken by stockholders to
terminate Doc and Doc jr from the company without any form
of compensation?
2. how the stockholders can
salvage some of their investment and block the circling
vultures? 3. can any of the principals currently at the
table be trusted?
I agree with an earlier comment re
Mike Q.
At least when he was with BOP he was
regarded as honest, capable, and, more importantly,
competent. Clearly, PZN/CCA is the major mover in the
business of prisons, I guess it just needs to be
rehabilitated.

I don't think that would be a problem, just means
Opco is now public. Normally this type transaction is
called a "reverse shell". One other way to go public
other than an IPO is for a private firm to buy a public
firm/ or shell. Browning Ferris Industries (BFI) was a
reverse shell. It's a lot cheaper to go public as a
reverse shell than an IPO. Lawyers sell public shells for
anywhere from $80k and up.

I thought I was complying with your wishes!!

Take My Advice Completely, Kind Excellent Reader

<EOM>

I didn't know any of that; thanks.

I'm beginning to question why I'm spending 50% of my time on a stock that comprises 5% of my portfolio. Ever wonder the same?

spending so much time on a stock that is 5% of my
portfolio, but used to be 20%. What is hard to take is that
Doc doesn't take the same kind of cut in his net
worth that the common shareholders do. Now some will
call that whining, and counsel us to bend over and
take it like a man. If we try to fight back, we're
called sore losers. As Nixon once said, "show me a good
loser and I'll show you a loser."

The most convoluted, arcane, unintelligible part
of the Internal Revenue Code is the part concerning
the taxation of corporate reorganizations. A straight
merger would work, but there are also a bunch of other
possibilities.

Meanwhile, from the SEC filings, CCA is bankrupt.
Liabilities exceed assets by $62,554,000. What are the
shareholders of CCA to receive, according to the proposal? If
they receive anything, it is a fraud on the
shareholders of PZN, IMO.

The perpetual statement that
we need CCA troubles me. For $62,554,000, you could
set up a new management division, with a clean slate,
and no debt.

Another thing that troubles me is
that CCA shows a $6,500,000 expense for the use of the
name CCA. Paid to whom?? Why? Are we supposed to
assume that expense? Call the damned thing Acme Prison
Company! That looks to me like another waste of our
money.

Wile E.

You raise good questions.

I imagine Doc
has provided himself a nice golden parachute prior to
this, and has gold plated it with the
proposal.

Personally, I would like to see a shareholders' group sue the
company and Doc to prevent him from taking anything from
the table, other than the shrunken value of his
stock. He has, IMO, defrauded the shareholders, and
through his dihonesty and incompetence, caused this whole
mess.

The problem is that the lawyers who represent
shareholders are vultures, ready to take whatever they can,
and leave a little for their clients. They would not
benefit from obtaining an injunction preventing Doc from
raiding the till on the way out the door, so they
wouldn't be interested in filing the case.

Wile E.