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Corrections Corporation of America Message Board

  • toptalk99 toptalk99 Feb 10, 2000 1:58 PM Flag

    Questions on Lawsuits

    Possibly one of the old happy brigade other
    knowing board members can give me some answers.
    The
    most recent Class Action suit refers to purchasers
    between June '99 and December '99.
    What about the long
    term holders going back 3, 4 and 5 years, to the days
    of CXC and CCA? Many of us held, and bought more,
    based on the many wonderful stories coming out of the
    company, of a very profitable future in the private prison
    industry, led by Corrections Corp. Are we without recourse,
    or are we included in any Class Action?
    Also,
    what about buying call options before, and within the
    class period, which could never be exercised because
    the bottom kept falling out of this great potential,
    with the dividends still being promised as late as
    December '99?
    Am I annoyed? In a word - YES!
    I feel
    we all were stiffed - short term holders and long,
    long term holders - IMHO!
    If anyone can give me
    constuctive guidance, please respond. Many thanks, in
    advance.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Abbey Cohen recommended reits along with chemicals and natural gas as areas to invest in today on CNBC

    • that you're right about the earnings report. But
      someone (I think I know who he is) posted recently that
      the earnings report will include something to reduce
      PZN 1999 taxes -- legally. All spec on my part, but
      could this be a big writeoff?

    • Thanks to pc, bruce and vince for you comments on
      the class actions. Guesss I should realize that the
      "suits" are the only real winners in these things. Maybe
      the little guys can get a bone or two. We'll see over
      time.
      By the way, has anyone else noticed the past several
      days on the close, and after reasonable trading - up
      to 5 1/2 during the day - somebody dumped a fair
      size block down at or near 5 for the "last trade"?
      Example, on Thursday it was 10.5k at 5 1/16, and Friday it
      was 13.8k at 5.
      Am I reading too much into this,
      or is there a reason someboby wants a close at, or
      near, 5? And, if so, what reason?
      Am I just
      curious, or has this thing driven me to paranoia!?

      • 3 Replies to toptalk99
      • There he/she goes again. Most trading since early
        moring has been several thousand, or less. Then on
        close, knocking price back to 3/4, is a closing trade of
        19.4k plus another (the balance of the "sell"?) for
        0.7k - all at 3/4. If that's a day trader, there sure
        wasn't much in it for today. Low at 5/8 and close at
        3/4. Maybe one of these days the longs will see a
        close at the high - for several days, and the sellers
        will be all out of there! One can only wish...
        Luck
        to all longs!

      • The sell you are seeing is most likely a day
        trader or very short term trader. PZN has been good
        money recently for this. Most folks who trade very
        short term do not leave money in the market overnight.
        Just my guess.

      • are truly the things that keep Doc and Jr.awake
        at night...as each day slips by those two creeps are
        starting to get the drift that there services are not
        wanted ...
        Also,If you looked at my past posting..I
        don't expect a BK...it is not necessary. The biggest
        changes necessary IMO, is getting rid of this absolutely
        rancid management and their stooges,
        cutting back on
        expansion plans for the time being...installing top ,tough
        management...who will work in the interests of the
        shareholders(don't forget ..we are the owners)and dumping the
        Blackstone deal...which is a conspiracy of greed and
        protection between old management and Blackstone. Now you
        ask..."what's going to happen"..I said it before...prepare for
        a rough ride ,don't let go ...those shares have
        value....a better deal will be cut,one way or another,(to
        much potential profits here for other players to let
        pass by)...the new players will make themselves known
        shortly as they gather their allies and put together a
        war chest...If Blackstone dosn't put a better deal on
        the table ,they will be dust..just like those turds
        Doc and Jr.
        Nuff said,
        PS for you assh*les who
        continually bad mouth PZN...show some balls add to your short
        position!

    • In terms of corporate structure, PZN is a REIT.
      That cannot change unless the shareholders vote to
      change it.

      But, in order to qualify for tax
      treatment as a REIT by IRS, certain qualifications have to
      be met, and PZN did not meet them. PZN will be
      forced to pay taxes on its earnings.

      And, as I
      told you over a year ago, they don't have the money to
      pay all those dividends you expected in
      1999.

      The issues going forward are:

      1)What should
      the corporate structure of PZN be? It doesn't do much
      good to my thinking to maintain the REIT structure if
      you can't realize the tax advantages. I don't know
      what is entailed in qualifying for REIT status in the
      future or how long that would take, if such is an
      option.

      2)Can PZN operate as a c-corp without the dilutive
      equity infusion (and rape of PZN shareholders)? We have
      NOT, as yet, been given any information to give a
      negative answer to this question.

      The most
      optimistic scenario is that PZN remains a stable operation
      in a growth sector without dilutive control of the
      company being given away by fraudulent management. Asking
      for the money to magically appear to pay past
      dividends is a wish from the other side of the looking
      glass.

    • Dear TT99,
      You are probably right with your
      analysis. I have handled a couple of these kinds of cases
      and you do not appear to be a member of the class. If
      you want to litigate then you would have to find some
      vehicle to be included--if you were a member of a class
      that overlapped then you might make an additional tier
      of plaintiffs--call the current securites lawyers
      for the complainants first and tell them what you
      think--they would probably steer you right. It is preferable
      to hitch a free ride than to start one of these
      kinds of wars on your own.

    • 5 and 3/8 can 20 be far behind??
      think
      positive and while you are complaining think about those
      of us who have ridden this tired horse from 30+.
      we're dying.
      also, i was told by a so called
      knowledgeable source that if the class action is successful all
      shareholders will receive compensation. that is, after the
      lawyers scrape off their 30-50%.
      comments?

    • Kemper is extremely bullish on PZN's
      future
      and has taken a huge stake, some
      13,000,000+
      shares. My gut feeling from them is that
      they will
      vote no on deal.

      Can PZN still revert back to
      REIT status
      and pay dividends for 1999? I
      think
      they can if they are willing to pay some
      sort of
      tax penalty? Help?

    • Others more knowledgable may correct me later
      (please do), but this is my "take".

      As I
      understand it those who bought outside the dates of the suit
      are not, and cannot be, included. (I've been around
      since Dec 94.)

      I have never heard of options
      buyers/sellers being included in a class action. Doesn't mean it
      hasn't happened though.

 
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