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Corrections Corporation of America Message Board

  • ugadawg_98 ugadawg_98 Aug 20, 2000 8:11 PM Flag

    Vote "yes."

    PolyRat is right. It is our
    only chance. Plus, we might
    actually see a nice bounce
    from these levels once we get
    through this restructuring.

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    • Sorry about the mistaken identity. I have
      appreciated your insightful postings and obvious knowledge
      and insight concerning PZN.

      What is your
      opinion on the lawsuit settlements?

      It appears the
      market deems the settlement favorably. Cash will be paid
      by insurance companies, therefore, dilution is the
      only apparant negative.

      I bought PZN in late
      Nov. 99 and sold call options, which I expected to be
      exercised in Dec. of 99. Was looking at a quick in and out
      but it didn't work that way. I should be covered in
      the lawsuit. If Doc hadn't insisted the div would be
      paid I would not have gotten into this mess.

    • Thank you for the kind comments but permit me to
      make a few clarifications. I am actually a male and
      not a female for what it's worth. I'm not sure my
      insight is better than anyone else on this board as PZN
      management has made fools of many folks, myself included. I
      currently don't have a position in PZN but I'm watching the
      proceedings closely and would like to get back in if we get
      the all clear signal, i.e. merger clears, occupancy
      improves and cash flow is more than sufficient to service
      the debt. I think the merger will fly but we need
      more time for the latter two to take shape. Good luck.

    • Thank you for the kind comments but permit me to
      make a few clarifications. I am actually a male and
      not a female for what it's worth. I'm not sure my
      insight is better than anyone else on this board as PZN
      management has made fools of many folks, myself included. I
      currently don't have a position in PZN but I'm watching the
      proceedings closely and would like to get back in if we get
      the all clear signal, i.e. merger clears, occupancy
      improves and cash flow is more than suffucent to service
      the debt. I think the merger will fly but we need
      more time for the latter two to take shape. Good luck.

    • The "retaliation" charge is ridiculous.

      You have always had zero credibility in my eyes.

    • give it up...with every post you make your
      credibility diminishes...you voted no, well OK..you are in
      the minority...it is your choice to abscond...but the
      "vote yes" crowd prefers to make their own decisions
      based on the facts...not out of retaliation

    • I have never mentioned "intelligence". I have
      said that institutional investors have more
      "resources" for investigating the current proposal and any
      alternatives that may (or may not) exist. You and I are not
      going to be able to talk with Lehman. Dreman could.
      Pacific Life actually offered its own proposal at one
      point. You and I can not do that. Resources are
      different than intelligence. Institutions may be no more
      intelligent than many on this board, but they are no less
      intelligent. We on this board have made errors similar to
      those of the institutions.

      The "vote yes" crowd
      on this board basically relies on the argument that
      without this deal PZN will be bankrupt. I can not prove
      that argument wrong, but I certainly do not accept it
      at face value, because precisely the same argument
      was made 8 months ago and it was false
      then.

      The current proposal is clearly not very good. We do
      not have new management that is a clean break from
      the previous management. We do not have a significant
      capital infusion. The proposal basically hopes that
      existing assets with existing debt will not lead to
      bankruptcy if we just eliminate cash dividends. That may
      work, but I would rather also have completely new
      management with a proven track record and enough new capital
      to move the company from the edge of bankruptcy,
      where it will otherwise be with the current proposal.
      Also, it is not true that the REIT structure put PZN on
      the edge of bankruptcy. PZN got there due to
      management willing to make big leveraged bets. The REIT
      structure with no growth (ie., no new prisons) would have
      worked. I would have been happy with that. But management
      wanted to leverage to the hilt and bet big. It did and
      it lost.

      The proposed deal is another
      leveraged bet, because it uses nothing but the elimination
      of the cash dividend to reduce leverage. Blackstone
      brought in new money (at a very high price to current
      investors). Pacific Life charged a high insurance premium to
      guarantee a cash infusion by existing investors. Both
      Blackstone and Pacific Life would also have assured a more
      meaningful change in management control.

      I have said
      before that the current deal will probably pass.
      However, I have more faith in people like David Dreman,
      despite his obvious failability, than I do in the "new"
      PZN management or in any of the posters on this
      board. I would vote yes if David Dreman announced his
      support of this deal. I have voted no because I want to
      give more leverage to Dreman's vote.

      Regarding
      the upcoming Presidential election, I consider Bush
      to be obviously the best choice. That decision is a
      lot clearer to me than PZN. More importantly, there
      is nobody else (including David Dreman) whom I trust
      any more than myself to evaluate a Presidential
      candidate.

    • Bayougirl, I only know what the documents
      provide. The proxy summary indicates ongoing merger talks
      with the two service companies on whose boards Mr.
      Crants remains -- I would guess that any further details
      are in those service contracts. Unless I am mistaken,
      both are still privately held.
      Both of the
      ill-fated outside offers had outlined similar mergers, as
      did that unusual proposal from the "competitor".


      Perhaps you might enjoy these selected portals to past
      opinions:
      Posts # 13949 & 13950
      13958
      13981 and a
      few after that.
      ========

    • You can only hash old Sh*t long enough before it
      all becomes counter-productive.

      I still have
      not figured out why anyone would not vote for this
      merger given the situation.

      On a side
      note.....how much are these prisons worth? As some of you may
      know WHC had terrible problems with their Jena youth
      facility. CPV, WHC's captive REIT actually owns it. The
      State of LA closed it down and WHC made the decicion to
      sell it versus convert it. The deal was CPV would look
      for buyers and if they had no luck then they would
      WHC would buy it back for the orginal price, roughly.
      Curious enough this is what is happened which does not
      say nice things about the resale value of these
      prisons.....FYI.

    • Great posts! Your insight and informative posts
      are a treat to follow. Brendy too!
      Please do not
      leave this board, as we are about to embark on a new
      and, hopefully, positive rebuilding program for the
      future - not the past. Past is history and we can't
      change that.
      Many thanks

    • Good post..........it takes a big person to eat crow. I agree, it is time to get over Doc and get on with it.

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