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Corrections Corporation of America Message Board

  • flipper_58 flipper_58 Mar 23, 1999 1:40 PM Flag

    What do you get for $8/share these days?

    Here I go with my calculator

    Assuming a CONSTUCTION cost of $35k per bed, PZN's 30K
    beds are worth $10 per share. Forgetting any step-ups,

    Your risk/investment, as I see it is
    $8/share in PZN for I can't imagine ANY near term problems
    that would cause prison beds to sell BELOW
    construction costs if PZN sold their all their beds.

    you believe those assumptions then at $18/share you
    should have ALL of your risked funds invested in PZN
    back by the Fall of 2001 or 2 1/4 years($1.80
    remaining 1999 special and regular div.+ $1.80 special
    1999, $2.40 for 2000 regular div., 3 divs. in
    2001=$ $7.80 paid out) So by the Fall of 2001 you will
    have almost zero risk with your remaining investment.

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    • why is PZN stock falling so much. How many
      million shares have to be traded before the disgrunteled
      stockholders are out and we have a new set of stockholders who
      are interested in what the stock IS doing - rather
      than what they negatively perceive. On the constant
      complaint that CCA should not have ever been turned into a
      REIT, a company official reckoned to me that the growth
      rate of the past could not be maintained.
      I guess
      we are in such a euphoric market a dividend of 11%
      doesn't "turn anybody on". I am from the old school I
      I appreciate this return.
      speaking, Doc and his minions really need to hire a good PR
      firm to get the PZN story out in a manner that the
      investing public can understand it, and also disspell the
      rumors that they are a bunch of crooks out to rook the

    • Did your friend say why Legg Mason was unloading
      PZN ???? I
      purchased more at 18 yesterday. I have
      been nibbling at it on the way down. I believe this
      company has a great future and
      the price it is at it
      is a great deal along with the
      healthy dividend.
      The volume yesterday was a little higher
      usual on the down side, not a good sign. I wonder
      somebody knows something negative that we don't know
      institutions are just unloading because it is the end of the
      quarter to make there holdings look better to there fund


    • I personally talked to the analyst there a few days ago. He rates the stock a buy. He expressed no concerns outside of what has been discussed here before.

    • .....are you on a last ditch blitz?

    • Anyone know why Yahoo is showing a 3% yield when in fact
      it is almost 13%?

    • Has there been a prison break somewhere?

    • Yahoo does not show dividend rate in the future.
      they only show the dividend after it has been paid. I
      owned USU, which was an IPO from the federal
      government, with an assured dividend. It was never shown in
      full until the stock had been out for a

      Wile E.

    • The dividend yield should be the only thing Yahoo
      is erroneously showing re: PZN and we'd be in good

      Its info is fraught with bad information and
      continues to be, despite PZN's attempts (at my urging) to
      get them to recognize the true and correct data. They
      (according to IR) refuse to do anything to correct the
      situation and accept the ACCURATE data which PZN has been
      informing them of.

      At the beginning of this year, I
      posted the fact that such things as ADV and Market Cap
      would be WRONG and explained why. They continue to be

      In answer to your question, Reitmaster_98, about the
      dividend yield being wrong, did you ever notice that
      before PZN recently declared the $0.55 currently
      indicated on Yahoo, that it previously showed zilch, zero,
      nada? Why did it do that? This is the PZN quote site,
      for heaven's sake. PZN had been paying a dividend for
      more than a year before the merger but you would've
      never known that looking at this site,

      The answer to your question is that someone at Market
      Guide considers the data relating to the pre-merger CCA
      to be operative here. That's why the maket cap is
      wrong (erroneous shares outstanding, no recognition of
      HSBC's periodic purchases despite PZN informing them of
      the correct S/O). Since CCA had not been paying a
      quarterly cash dividend, M-G (and by extension, Yahoo) only
      recognize the $0.55 that's been declared thus far
      (post-merger) rather than the $2.20 it would be extended to on
      an annual basis (and would be shown that way by
      Yahoo) if they didn't take the obstinate position I'm
      informed they have.

      I'll try to see if I can get
      the name and e-mail address of the individual @ M-G
      responsible so that this thread can express itself, if it so
      chooses. Otherwise, I think our next best bet is to see if
      we can't get the authorities to "Free Ted K." There
      are occasions when his "talents" would come in handy
      and this has been shaping up to be one of those

    • The following is a quote from Peter Lynch's book,
      "Learning to

      If you are going to invest in a stock, you have to
      know the story. This is where investors get themselves
      into trouble. They buy a stock without knowing the
      story, and they track the stock price, because that�s
      the only detail they understand. When the price goes
      up, they think the company is in great shape, but
      when the price stalls or goes down, they get bored or
      they lose faith, so they sell their

      Confusing the price with the story is the biggest mistake
      an investor can make. It causes people to bail out
      of stocks during crashes and corrections, when the
      prices are at their lowest, which they think means that
      the companies they own must be in lousy shape. It
      causes them to miss the chance to buy shares when the
      price is low, but the company is in terrific


      Perhaps the story here is not clear enough. I have been
      interested in PZN for some time, and have watched as the
      price has sunk down (today, below 17 for a while). I am
      confused by the prospective dividend, apparently divided
      between for-sure and we-may-pull-it-back. Could someone
      explain this?

      What will happen to PZN if interest
      rates go up (which I am sure they will over the next
      few years)? Does this impact debt already in place?
      What about availability of funds, should credit
      tighten? Can PZN stop building and live on its current
      income? Or does it have to keep building to

      The REIT structure is not popular right now, as I
      understand it, partially because rents are not as secure as
      they were. PZN's rents are assured. The prison
      population is at an all-time high, and will keep on growing.
      Crime is down in this country for the simple reason
      that prison terms are getting longer. Keep the
      bastards off the streets, and insurance rates go down,
      people are safer, and life is better. So if PZN's rents
      are secure, why the drop?

      Wile E.

    • One of the other stocks I follow is HCC (on the
      NYSE, too). If you check its Detail Quote and Recent
      News, you'll see that it recently increased its
      quarterly dividend 25% from $0.04 to $0.05 per share. The
      day of its announcement, Yahoo was already reflecting
      the $0.20 annualized dividend it's currently

      I stand by the explanation given in my previous
      posting. Get those "Free Ted K." posters ready, folks.
      We've got sheer intransigent stupidity at work here on
      the part of the data provider.

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