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.
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.
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.
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.