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Corrections Corporation of America Message Board

  • keenopokomoko keenopokomoko Sep 8, 2000 4:50 PM Flag

    Newbie here. To buy or not?

    Have given thought to acquring 5000 shares of PZN
    at around $2.00. Would you recommend I look
    elsewhere for a fast buck? I will admit to
    short-sightedness and ignorance and that I am gambling here. Flame
    me not please. Are any of YOU acquiring more PZN at
    the current price? Thanks.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • keenopokomoko writes: Are any of YOU acquiring more PZN at the current price?

      Are you kidding?

    • Sept. 22 about $1.12 PIK dividend to be paid to
      s/h's of record Sept. 14. Restructuring vote on Sept.
      15. It appears the vote will pass and that should be
      considered a positive by the market.

      If you can't
      net a profit from buying this stk at $2 before the
      vote and div. payment, then, the near future is very
      bleak.

      I believe a good percentage of profit will be
      available by buying now and holding past Sept. 22nd. I
      believe dilution is already factored into the stk price
      and therefore the stk will drop only slightly after
      ex-div. date.

      This is an opportunity to make 30% -
      50% within the next month. Of course that is just my
      opinion.

    • Im Buying All I can Of PZN at 2.00 a share!
      Considering the up to 25.00 near term around
      Jan 2001,,, looks like a great deal to me !!!

      • 1 Reply to LWillinsky
      • PZN still is expected to do a rights offering
        too. It's not that I don't think the common is a good
        buy, I think it's too early. A large unknown quantity
        of shares at unknown prices will be issued in the
        next 3-4 months. If your willing to continue to add
        money to fight these dilutive moves you could have a
        big score in 5 years.

        It's be my feeling the
        common shares will be flat, taking into account the PIK
        pref. div. in the next 6 months. Don't forget tax loss
        selling at year end. Early January, if the rights
        offering is done might be a good time. There just is a lot
        of supply ahead and it's not easy to plow through
        that normally. This is strictly a technical viewpoint
        which is as good as any opinion given the uncertain
        fundamentals.

        As long as the banks continue to NOT pull the plug I
        don't see any reason why PZN can't come back to "old
        glory" in 3-4 years. IMO the private prison model works.
        2)With a LOT fewing new beds coming on line, occupancy
        will, on average grow. 3)The crushing debt rate PZN now
        pays will drop over time. 4) States are feeling rich
        and spending money like it has no end. Wait a few
        years and watch them PANIC. Sentiments change.

    • This company is going down in flames, burning your cash with it. Put the money in your mattress (just don't smoke in bed).

      • 1 Reply to whynotaduck
      • Depending on whether or not the deal
        goes
        through, this company has
        the numbers to make
        it.
        However, I'd agree with Flipper that
        unless you're
        gonna do an arbitrage-type
        play with the "B" PIK
        preferred dividend
        that's coming out, you're probably

        better with the preferred "A" or the
        bonds because of
        the resultant dilution
        to the common because of
        the stock
        dividend.

        NOTE: the "A" is cash
        pay, and even
        though it isn't paying right now, it
        is accruing the dividends, so your ultimate
        total
        return could be quite strong.

        P.S. I noticed the
        "whynotaduck" alias
        was just created today. Probably
        another
        alias cooked up by those nice
        folks on this board
        who really want to
        "help" you.

 
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