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=$1.80....total $7.80 paid out) So by the Fall of 2001 you will
have almost zero risk with your remaining investment.
the correct (erroneous) data provider and for
your explanation of how and why Reuters does what it
Mea culpa for my not checking here on Yahoo for its
appropriate source provider of the subject data before
initiating posting #662 ("I know ....) and my apologies to
M-G for blaming them. They have plenty to be blamed
As I said earlier, it appears
that the refusal of Yahoo, Reuters, or M-G to
acknowledge certain statistical/data elements of PZN
pre-merger, is, according to PZN, responsible for the bad
Here's the way Yahoo determines the way they're
going to show the dividend and its yield (actually,
it's the way Reuters does it and Yahoo gets it from
It's a bit complicated and not the way the rest of the
world does it. They are trying to get at a recurring
So, here's the rules:
1) If the stocks
dividend has been different for the last 3 quarters (for
example, if it's increased every quarter), they will use
the sum of the last 4 quarters (they assume it's not
recurring and not stable, regardless of the fact that it's
only been increasing in most cases).
2) If 2
of the last three dividends were the same, they will
annualize that number and use it to calculate the yield.
(again, assuming it's recurring and stable).
don't know why Yahoo is screwing up PZN's yield. They
should be showing $0.48 x 4 = $1.84. It must be related
to the merger. Maybe the CUSIP number changed or
Who cares, anyway? Anyone who studies the stock will
learn the value of the business. People who are
investing because they see a stock yielding 12% and they
know nothing about it will only add volatility and
risk to the stock.
My $0.02. Hope it's useful.
Buy it, stick it away and forget about it.
CCA stock had a market value over $40 at one time
so I don't think that investors are overlooking this
stock. PZN is being penalized because of risk. Most
investors demand a greater return given the risks. I think
investors recognize the following issues: corrections
stocks were over valued, earnings growth rates are down,
the merger was confusing (also insider and
self-dealing issues), surpluses in federal and state
governments will impact contracting out activity, overall
market risks (i.e., Asia), event driven risks (escapes,
For sure i can tell you that anything that isn't
related to .com, or a tech is very overlooked these days.
Thankfully I got into CMGI at the right time. And i'm pretty
sure that PZN is far far down the list for a lot of
people. None of my investing friends would ever touch
this stock, the image of course. But, i'm still in it,
knowning fully well that its day in the sun will be here
sooner or later. BTW, for anyone who is looking at good
divi's, here are a few of mine.......DXCPN DXCPO ENP LHP
IBI (ok, ok, im not in this for the
dividends, but they do pay, and the pictures are great at
their site.)......SGOLY, and of course PZN. Thanks for
I just don't get it. They're making money,
they've got a good payout ratio, nice dividends for
unitholders, crime is a growth industry, we're in good times
now so bad times will be even better for prisons, yet
this stock sinks like a rock. I don't believe Wall st.
is wrong, so there must be something we don't know.
Perhaps the anti-private prison activists will succedd in
forcing state governments not to renew private prison
Some of the other reits I own :
skt - great
father and son management. Dividend is only around
70% of FFO the last time I calculated.
hrp - FFO
are starting to increase at double digit. May
off part of business as separate reit.
got screwed from being a paired reit. New management.
undervalued. Good turn around canadate. Dividend
egp - Very undervalued.
I think there's an inverse relationship between
your sense of
humor and PZN $$. 'Specially like (f)
and (g) at end of 668,
but real winner is (e).
Clinton needs you. His Gridiron material
than the Correspondents' Dinner.
I figure to
buy some more when the dividend % gets to 40, which
is coming up fairly soon, IMO. Can't wait. Would
love to see
the look on naysayers' faces when we
can buy a 40% returner for single digits. Hell, I'm
selling all my Peritus just to have the
Got pretty upset about selling this morning and
looked for a good pump & dump all afternoon - found it
with BEAM breaking out and got my $ back. Sure don't
recommend doing that all the time - I still like PZN.
Legg-Mason contact just said (Tuesday) they were selling.
Didn't say why, but that was enough. I'll be back in
after this craziness settles down; the story is great -
a leader in their niche with business going
gangbusters. If this kind of dividend continues, this is a