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Corrections Corporation of America Message Board

  • victoria49319 victoria49319 May 22, 1999 10:44 PM Flag

    erth

    Flipper, are you still in erth? Haven't seen you on erth board lately. If you are what do you think of erth's management. Vic

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    • I had sold most of shares awhile back. My concern
      for the high level of the market, critical analyst,
      Salomon's Mullins, pulling his support and no earnings was
      getting to much for me.

      Vic I became interested at
      first since i had made money "flipping" the IPO. I knew
      that they had alot of cash and with Salomon and First
      Boston underwriting the deal I figured the product had a
      real chance. When it went from an opening at a $3
      premium of $24 to $5 in 4-6 months to $5/shr. I thought
      it was worth a look.

      My largest concern
      related to management new policy to joint venture the
      product verse license it(what they orginally said) This
      involves a lot of cash. Without a cash flow or firm
      contracts they won't be seeing any new debt. If they
      attempt to sell stock, it would not be a pretty
      sight.

      Sorry to be so downbeat. I just think it will be a
      bumpy road for awhile. I think they will work it out,
      when some of the largest companies in the World take
      interest, there is something there I'm sure. Thx for your
      interest.

      Now the spam...My new "puppy" is MATR($5.25). Started
      buying it last fall. Nice cash flow from obstetrics.
      They bought a diabetes firm(Sam Zell part owner) last
      winter, they are now the largest home diabetic care firm
      going. Earnings could be $.40/shr. this year(13p/e).
      Goldman bought 10% a few months ago. And the big shhhhh,
      they bought a division from WEBMD and get alot of
      stock and warrants. WEBMD sold to HLTN for 1.815
      shares. Looks like possibily 600K of HLTN @$111/shares or
      $1.85/share. Hopefully used to clean up the balance sheet. New
      price over $5 means new research coverage too. Stock
      could settle back a little so buy in peices,
      IMO.

      My other buy is CNDO, $15. Bought it as a yield type
      play. You accountant types will like this one. An off
      balance sheet company from ALZA. Used to move RD expenses
      off the books of ALZA to make ALZA books look better.
      A spin off from Alza pham. with $300M in cash. CNDO
      contracts the research and retains the rights to the
      product. In Jan of 2002 , and anytime up too that, ALZA
      can buy out CNDO s/h for a series of different
      prices(multiple of product sales, that kind of thing, it's in SEC
      docs)Anyway the minimum price is $20. At $15, $5 divided into
      3 years equals 11-12%. As of last FEB ALZA
      licenesed it's first product from CNDO, ditronpanXL for
      bladder problems. IT's been a bigger then expected winner
      for ALZA. $65MM in sales alone this year. Well CNDO
      owns the patent. Since it's been should a success and
      CNDO is running out of money. I figure ALZA will
      exercise it's option to buy CNDO next year. If sales of
      ditrolpanXL go the way their going it will cost ALZA a lot
      more then $20 to buy out CNDO shareholders. CNDO also
      has one other product in level 3 trials. Anyway check
      it out. VERY thin though. When buying, put limit
      orders on the bid side and be patient. There are only
      5MM shares outstanding.

      Cheers.

 
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