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Corrections Corporation of America Message Board

  • Larry8888nyc Larry8888nyc Jun 29, 2000 9:12 AM Flag

    BLACKSTONE SUCKS

    Their offer was highway robbery and the shmucks
    who signed off on that deal should have been strung
    up. However, it would be nice if there was a
    "loophole" and PZN can either renegotiate or walk away after
    a court battle. Blackstone knows that the coin can
    flip either way in most cases and maybe would settle
    for some smaller dollars. I have not read the
    complaint or the reply and will wait to review.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • MY worry with booting Doc is the way Govt. works.
      Often someone knows someone and a deal is magically
      done or a request comes down for just what someone is
      offering. Doc may have the contacts that others may lack.
      tpa

    • -----Prison Realty has initiated
      discussions
      -- for merger into a
      wholly owned subsidiary of
      PZN. In the event PMSI and JJFMSI are not
      merged
      into pZN, they will continue
      to operate those
      facilities currently operated by them, and PZN
      will
      continue to be entitled to receive 95% of each service
      company's
      net income as cash dividends ----

    • will not include Prison Management Services and
      Juvenile and Jail Management Services, two private
      companies. Were these spinoffs from the PZN merger in
      January 1999? Whomowns them? Is something missing here?

    • No argument here on this score.

    • Whatever.

    • Brendy,

      A few weeks ago I figured out who you were. At least, I think I did. At that pt, I decided to have a little fun w/ you. Sorry. I didn't mean to upset you so much.

    • is part of the Proxy Statement. It
      is
      constructed in such a fashion that
      there is one column in
      which the
      inter company transactions are
      netted
      out. The combined P&L
      showed approximately a net
      loss
      of 11,000,000 for the quarter ended 3/31/2000 but
      that included
      depreciation of approximately 16
      mm
      giving positive cash flow of 5,000,000. But the only
      meaningful
      quarter will be the 3d assuming the
      shareholders
      approve this merger, which they should. It will
      eliminate
      excessive charges buried in CCA,s
      Operating expenses and
      it will include new revenues from the recently
      signed burea of prisons.
      anytime I can buy solid
      income
      producing assets like PZN's at 50centson the
      dollar I will do so
      I already own 6,300 shares at
      an
      average of 3-3/8 and I regard it
      as the best buy on
      the market.
      Pac Life did PZN s shareholders
      a
      favor by not going thru with their
      deal. They
      backed off only because
      the Banks would not agree in
      advance
      to a further renewal of the credit
      agreement down
      the line (this was
      one of the conditions they
      had
      stipulated in advance would give them
      an out).
      These
      assets are solid income producing
      assets. PZN
      essentially is leasing
      to government entities with an
      option
      to buy at prices set by PZN.

    • I don't know where you got the idea that I am
      "blaming the bankers". I do not blame them, but I also do
      not trust them to protect my interests.

      What I
      have said is that the creditors can not be relied upon
      to turn PZN around. I mean that from an equity
      holder's perspective. As you correctly point out,
      creditors' self-interest is not fully aligned with that of
      equity holders, so you would not expect them to protect
      our interests. Hence, we (equity holders) should not
      be reassured by the control that Lehman may be
      currently exerting. Until I see tangible evidence that PZN
      is being managed well, I will take a doubious view
      of the company.

    • That's what PZN comes down to. We have trusted,
      and the future always seemed to hinge on Doc pulling
      a rabbit out of a hat. The FBOP contract seemed to
      be a rabbit, but only $75 mil/year for a pretty big
      company. Another rabbit would be nice, but as the Indians
      used to say, some folks are all hat and no rabbits.
      The money is being squirreled away until a far-off
      merger event happens. Until then, can we even peek at
      the private entities' books? I get the uncomfortable
      feeling that we have not been told the whole truth, which
      is why this stock has languished.

    • I need a little help here from you analyst types.
      I dollar cost average down to about $4 on 5k
      shares. I tried to understand the financials but they are
      not very transparent due to all the intercompany
      transactions. I then tried to determine what the max. revenue
      this company could make based on 100% occupancy on the
      facilities that are operating and was not satisfied that
      this could ever be a $5 stock based on an estimated
      cash flow projection and a simple P/E valuation
      methodology.
      I held on anyway because I figure I was missing
      something that was not readily available to the
      public.

      My final rationalization for holding this stock was
      that an institutional investor would invest in the
      company and do enough due dilligence to rationalize the
      future profitability of PZN.


      QUESTION?

      Why should I hold PZN now if PL would not go near
      this investment. My gut reaction is that they backed
      out and decided to cut their losses instead of
      chasing good money after bad.

      As far as the banks
      are concerned I think that they are working with PZN
      because they do not want to own prizon real estate and
      are trying to buy time against the inevitable.


      Has anyone prepared an analysis of the profitability
      of each property and or contract? I believe that the
      mgmt of prisons could be profitable since the next
      largest competitor in prizon mgmt is profitable. However,
      I am not so sure about the ownership of the
      properties.

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