I don't want to spend my money to bail out OPCO
either, however, if OPCO goes bankrupt we will never see
all the money they currently owe PZN. I believe the
very reason they are so cash strapped is because of
what they owe PZN.
Also, I don't believe PZN
can remain a REIT if it merges with OPCO. Doesn't
REIT status require a limitation as to the source of a
REITs income? I believe PZN must contract the actual
running of the prison business.
to be the white knight we have been waiting for.
They should just go ahead and start a proxy for
control of PZN. They will get majority vote and just get
rid of present mgt instead of trying to work with
Buying super beaten down undervalued
and riding them up for 100-500% gains.
don't question bigman_herb....
PZN will be at a
bare minimum of $10 by
July 2001. That is a 158%
return plus any
dividends for me from my large buy at
bigman_herb of course must state that
is his opinion.....Take care all. PZN is
buy ---good luck.
I agree with your basic points, but would like to
question certain issues you raise.
While it is true
that OPCO's bankruptcy would mean PZN would never get
anything back from OPCO, there is no way for PZN to
salvage these debts by subsizing OPCO. PZN would be
repaying itself with its own money. And since OPCO is
obviously run by crooks, why deal with them?
can not remain a REIT if it merges with OPCO, but PZN
does not have to remain a REIT in 2000. Furthermore,
OPCO could go bankrupt and PZN could contract with
another operator and continue on as a REIT
PZN should either let OPCO go bankrupt or merge on
rational terms, which would mean that OPCO investors get
close to nothing, because it is OPCO that is bankrupt.
PZN has a liquidity problem, but it has a positve net
value due to the real estate it owns. OPCO has only
debts, no assets.
The reason that PZN may not
want to remain a REIT in 2000 is that there may be no
real profits to pay taxes on anyway.
point is key and I agree completely. The current
management of both PZN and OPCO (same crooks) should be
removed. Merging with OPCO in 2000 may provide a
convenient legal structure, but OPCO investors should get
nothing (except that PZN would be relieving them of their
current negative net worth), and all current managers
should be fired. (Maybe also jailed, but that's for the
courts to decide.)
I agree with what you are saying. My point about
OPCO would be that if they are forced into bankruptcy
they would probably continue to operate under court
supervision. I would not forsee a prompt Chapter 7
liquidation. Of course we don't have enough info about OPCO to
determine if they could eventually repay PZN or not.
Your point about merging with OPCO is correct. In the
merge A/P offset A/R and PZN would have control to
replace current OPCO mgt. Accounts Receivable could be
realized. The only negative would appear to be delution or
addition of debt if there is any sizable debt other than
PZN. There could be sizable debt other than PZN.
Again, we wait for information that should have been
available to us from the start.
i am in full accord with your message....we
should be able to get rid of the directors who do not
represent the stockholders' interests....if this calls for
a proxy fight, then Pacific should be able to lead
us to a proper conclusion, which would be to get rid
of the bums and procure a proper BOD.....let OPCO go
I am assuming they committed to the large fees as
an additional reason for telling s/hs the deal must
go through. Yes, I agree current mgt has no interest
in what might be best for common shareholders. Its
obvious from all their actions that they have put
themselves first. They have structured everything so that
the common shareholders has to pay dearly if things
do not go their way. That is why we can not continue
to work with present mgt. They must be replaced as
soon as possible. They are an insider poison that must
be purged as soon as possible.
What a drama!
Lead character is a fake
"doctor" with a name like Scrooge or Crabby Appleton - a
man of distain, arrogance and ego, who positions
himself perfectly for a tragic fall by alienating the
analysts, the investors, the banks, the IB (no dougt) and
probably the whole street.
The evil empire is aptly
carries the moniker of "Blackstone." The force is
represented by "Peaceful Life". And naturally, in the current
chapter the onerous offer that brings the equity to its
knees is now followed by a ray of light that breathes
life back into it.
Surely this is not the end
of the story of palace intrigue, hopes raised,
dashed and raised again. Probably the BOD *will* refuse
to consider the offer. That's the most dramatic
scenario. Doc may suffer a Larry Flint-type attack that
leaves him crippled and in pain as his empire crumbles
around him. Blackstone may be revealed as the disguised
princess by countering with an even sweeter offer than P.
We need a dramatist here to advise the investors.
But seriously, I believe this makes the future of PZN
much more tenable for LT investors who are still here.
This drama really tests the patience and serenity of
So what does the stock do Monday?
And how do we best fuel the momentum toward the
Pacific Life deal? (Or will there be other, better ones?)
Fun post, sumaoji! Don't forget the surprise plot
twist, ie. occupancy issues that lurk in the background
and can rise to champion or defeat. I still believe
that occupancy is the trump card here and expect some
news re the issue before our drama reaches its proxy