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Corrections Corporation of America Message Board

  • gimme_britney_spears gimme_britney_spears Dec 16, 1999 3:16 PM Flag

    Question on special dividend

    I am new to this board and considering buying in
    to this stock. Is there any known date of record for
    holding the stock to collect this dividend? If not, is it
    likely that there will be a window of time to buy in
    after the announcement? Or do I need to buy right
    freaking now!

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    • Lets suppose, for the sake of argument, that
      someone bought 500 shares of PZN at $10/share with the
      hopes of getting a 22% annual return of $2.20 per share
      from the FFO of $2.20/share. However, in order to keep
      paying that dividend PZN also had to come up with a one
      time payment of another $2.00 per share for which a
      big bad bank would not loan them the money (demanding
      as most banks do another pound of flesh). So instead
      of giving in, our hero (Doc-the smartest of the
      seven dwarves) issues a 12% $1000 bond(payable in 20
      years)for every 500 shares that someone owns. Its perfectly
      legal, it meets all requirements of IRS REIT rules
      ,banks can't cry foul and NO DILUTION.
      Look at the
      10K, this action doesn't even change the balance sheet
      as distributions payable are already accounted for
      under the liabilities.
      Do we get our dividends?
      Sure we do. Some of the return is in the form of
      interest and the rest is in the form of an REIT dividend
      reduced by the $0.24 per share to pay the interest on the
      bond. How about paying off the bond? We have 20 years
      to figure that one out(think-sinking fund). In the
      meantime, I am off to deposit my 22%. So look at FFO--the
      analysts all agree that its going higher. Happy Holidays
      to all and to all a good night.

    • I believe the forthcoming dividend will be
      preferred stock or bonds. Doc and Co. got a lot
      of well
      deserved flack for using scarce cash
      last time. I also
      believe Merrill Lynch is
      looking for a "white knight"
      to take the
      company private. The next week or
      two will be
      very interesting. As a long-time
      investor, I
      have been very sorry to see CCA, once a
      Steet sweetheart, turn into the very sorry
      PZN we
      have today. Cheers!

    • I'm just just going to enjoy the delicious
      dividend stream, even if it goes bankrupt! Who cares?
      (They can't cut the dividend anyway, under current GARP
      rules. And even if they did, who would care? Not me, I'm
      a moron.)

    • what gives me pause is not that they are picking
      and choosing SI proposals, but that the proposals may
      have caveats built in that screws the stockholders
      more as the price declines. Thus, Doc and company may
      be choosing which is the least painful, not the one
      that is most advantageous. It's the "everything is
      going to be all right," followed by deep silence,
      followed by bankers screwing the company, followed by a cc
      and more deep silence that has people reluctant to
      step in and buy. Just too many unanswered questions,
      and IR dances around these questions -- my portfolio
      is getting back to where it was last year, but it's
      the tech stocks, not PZN that's getting it there.
      Can't wait for the ONE BIG RELEASE!!!

    • when will next div be paid?

    • I imagine it would be harder for this company to
      go under because you can't just have the tenants
      organize and make it over into a co-op.
      I guess I
      shouldn't worry about drug possesion and sales being
      de-criminalized anytime soon either. So, with all the insanity in
      place, we should see a steady stock price rise once
      someone decides to cough up some new financing.
      still think they should merge with AGIS for a
      profitable venture that would help both companies. AGIS is a
      call center business.

    • Sorry about $10 prediction. I do think $10
      prediction will come true by 12/31.
      They are puting all
      of the pieces together so
      that they can address
      everything in ONE BIG
      RELEASE....atleast that is what I
      am getting
      from company.
      They cannot insider
      buy prior to an announcement
      of this sort nor can
      they buyback their own stock.

      At any rate, even
      the absence of a dividend here doesn't justify the
      stock price at
      3 times FFO. Sorry, but not in any
      business school, classes etc.

      I am just as sick and
      frustrated as everyone else. Keep in mind that when you
      bought PZN,
      you bought it for long-term, not day

      Let's hope we here some good news next

      p.s. I reiterate what IR told me...They
      analyzing various SI proposals. This sounds
      like they
      have something on the table but
      are deciding which
      to choose.

    • 5) Own the stock, Wants to see to stock spike up
      on speculations so can get out before going back
      down, but comments about the facts the way there are
      because beleive the board is to help one another to avoid
      mistakes or at least understand them.

      PS: If Doc is
      that honest, then given the situation he is
      incompetent and realize for the good of all that he should
      leave. Of course you also must define honesty by his

    • I have been off this Board for two years
      am going to sell my holdings for tax loss purposes
      before year end. I deplore the lack of
      from PZN about the year end
      dividend. I would
      think the SEC and NYSE would
      have some requirements
      as to when such announcements need to be made. I
      should have gotten out earlier when sky high
      12%, 7 year notes were sold to Lehman Bros.
      management should be completely divorced
      from operating
      company management. Get out
      DOC and hire some real
      "independent" pros for
      PZN. I, and I am sure, many others
      have taken
      a real beating on PZN(formerly CCA). The
      writing was on the wall about 18 months ago
      when BABY
      DOC, along with one other gentleman,
      got $
      2,000,000 for cobbling together PZN on a part-time basis
      over the course of a year.

      We live and learn by
      some hard lessons. PZN has
      been the most brutal
      one for me to date.
      Good luck to all of you
      holders! I do hope PZN
      will come back. CCA and PZN
      would make a marvelous Harvard Business School Case

    • You're <<<a little worried about the
      price-to-sales of 2.5. >>>

      Excuse me!!! With all
      due respect, price-to-sales is how dot.coms may be
      evaluated because that's about the only measure that may
      work at all to evaluate them in todays market. But for
      a REIT??? I think you better learn a little more
      about REITs before you tackle evaluating them. P/S is
      one of the few measurements I wouldn't think to use
      for REITs as it would be virtually worthless in its
      indications. With REITs, their are so many much better
      standard measurements used to evaluate them.


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