Just got back from the Hamptons and needless to say ,last few days of posting is now leaning on the positive side. Current news is powerful ally to sewing up this deal and moving this stock up. Additional news releases,(ie) like "new management" could really do the trick and I believe those lawsuits will be settled cheap because they don't have the same legs to stand on now that PZN remains a REIT for this year.I also feel that PL would move ahead with the deal,even if the plaintiffs got bullshit...as the defendents position is not that vulnerable to any big $ award.
The stock is not exactly on fire in spite of Friday's news. Not a lot of excitement. I bought a little after the open this morning. May buy more as things unfold. The lawsuits remain a thorn in the company's side, and the plaintiff's attorneys know this. Cash call and potential arbitrage also limits enthusiasm. Also, rumblings about california law not permitting PZN to bring in ANY prisoners from out of state -- I think this law will not stand up to challenge (though I'm no lawyer) given federal interest. It will be settled politically and never go seriously to court. The new contracts give the company hope if it does not bleed to death while waiting for the cavalry. Le_Chacal, you are among the most well informed -- can you shed light on new business developments?
About California law prohibiting inmate importation. There's this little clause in the U.S. Constitution called the supremacy clause. Simply put it means a state cannot tell the federal government were to house its inmates.
The law has questionable validity as to other state's inmates, but even the CA Attorney General's office has recognized that CA has no control over the location of federal inmates.
Flipper recently provided a link to institutional holder's report, and I got focused on the reallt big holders. Then I scrolled down and found two small positions, each a little over $2 mil (about a million shares, mas o menos, but it was the companies that got my attention -- TIAA/CREF and Prudential). Increasing their holdings in small bites, pocket change really. TIAA/CREF, of course, run retirement plans for universities among other groups, but always under scrutiny by very smart people (their boards include professors of finance, presidents of big schools, life insurance VPs) and doing pretty thorough DD. Disclosure: I have an annuity contract with TIAA/CREF, so I am biased but also impressed. I will be looking for the June 30 report to see if their positions increase further. Flipper, thanks for the link.