After thinking about for a day I've determined Doc just had enough, so he handed Merrill who handed Blackstone the check book. IMO, no one who was fighting for their share of the company and the future of it would of handed Blackstone such a sweetheart deal.
IMO, the defense of the common shareholders is very weak at this time that's why I'm only sticking with the non-dilutive parts of the company. If the plan fails in the next 12 months they will be back into the common share holders pockets again.
I have not gone through the numbers yet but sockey usually has them right. We might be looking at a more serious occupancy issue then was orginally discussed, this huge capital infusion might say.
The other issue is the inflated "step up" apprasial's going into the merger. PZN 20k+ beds where stepped up a large amount. It could be the bankers wanted more equity as the asset apprasials from 40% lease rates can not be supported anymore.
Either way I can't see declaring this a victory yet. Maybe it's the low for the stock, I'm not very good in predcting those things but it sure smells like more skeletons in the closet to me.
So you are asking me to submit the following complaint?
I am complaining because sometime in December, during your quiet period, some guy whose real name I don't know said that he called PZN and PZN told him the special would be paid. Then later they said it wouldn't be paid. This makes me mad because even though this company has been misleading its shareholders for over a year, I really thought I should be able to trust them.
Sorry--I refuse to be a part of any lawsuits or complaints--don't like the mentality behind them. But even if a complaint is valid, the only ones that will get hurt by it are the common shareholders.
in the Third Qtr was $10.3 million. New CCA burned through $12.2 million in cash in 3 months. The 6/30 balance was $14.8 million by 9/30 it was $2.6. This is speculation on my part but I'm guessing they were hoping the occupancy rates would rise enough to provide the cash flow to kept them going but it did not happen. How many developers have expanded to quickly got overextended and squeesed by their lenders. Flipper I'm not an expert on capital markets but why did they not have a common stock offering a few months ago when the price was in the teens?
""but why did they not have a common stock offering a few months ago when the price was in the teens? ""
Remember not to long ago when they stopped HBSC from buying stock monthly in $16 area as the "price was too low"? Also $100mm junk deal issued in the summer was a bomb, getting 1/3 done what they wanted. I think at that time they knew there was no chance or floating an equity deal.
One question I've wonder about was, "where has been HSBC all this time?" They have been such a dependable investor in PZN and were turned away in the recent equity financing, I think. It was said they wanted an strategic investor, meaning they wanted someone to can Doc I guess. HSBC was ready to put $600mm a year into PZN. Did DOc say no to them right till the bitter end thinking it would all turn on a dime? Inquiring minds want to know.
Socksey what do you think is the best avenue to proceed with this company? If the new preferred trades the arbs will put a bit of pressure on this stock. With a 12% coupon and a 20% premium, on a low priced stock this is a prefect convertible arbitrage. MAybe Blackstone will play the same game. Long the preferred, short the common. Collect the coupon, the short rebate, and do it with as little as 10% down because the transaction is considered boxed for NYSE margin rules. Leveraged this type of transaction can provide 25% returns with a fraction of risk of owning both. This tends to be more "side stuff" and certainly will not be that controlling of the stock. This is NOT a "death spiral preferred" as was asked earlier that creates endless amount of new stock.