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.
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.
-----Prison Realty has initiated
-- for merger into a
wholly owned subsidiary of
PZN. In the event PMSI and JJFMSI are not
into pZN, they will continue
to operate those
facilities currently operated by them, and PZN
continue to be entitled to receive 95% of each service
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?
is part of the Proxy Statement. It
constructed in such a fashion that
there is one column in
inter company transactions are
out. The combined P&L
showed approximately a net
of 11,000,000 for the quarter ended 3/31/2000 but
depreciation of approximately 16
giving positive cash flow of 5,000,000. But the only
quarter will be the 3d assuming the
approve this merger, which they should. It will
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
producing assets like PZN's at 50centson the
dollar I will do so
I already own 6,300 shares at
average of 3-3/8 and I regard it
as the best buy on
Pac Life did PZN s shareholders
favor by not going thru with their
backed off only because
the Banks would not agree in
to a further renewal of the credit
the line (this was
one of the conditions they
stipulated in advance would give them
assets are solid income producing
essentially is leasing
to government entities with an
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.
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
I held on anyway because I figure I was missing
something that was not readily available to the
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.
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