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Correctional Services (CSCQ) Message Board

  • Durangogold Durangogold Dec 27, 1999 4:56 PM Flag

    If Crants...

    is really going at PZN/CCA, can Slattery be far
    behind? When does major stockholder pull the string?
    March 1?
    Who acquires? How about former executives,
    buying in, forcing mgmt team out, starting over.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • prison sector has been down for the past 12-24
      months is about 90% related to the WallStreet problems
      from PZN. PZN's going into/out of REIT, etc. has taken
      everyone's eye off the ball as to why they invested in this
      industry to start with (i.e. strong fundamentals with very
      visable earnings growth of 20+% for many years, etc.).
      The other 10% has been from bad press, which although
      there are escapes in public prisons too, you only seem
      to hear about the ones from a private
      facility.

      I own, and have for along time, almost all the
      private corrections stocks. We have a nice oppurtunity
      now with everyone flying into Tech (although that's a
      good place to be, but someday that bubble will burst),
      and they've let this sector get beaten down way below
      where they should be.

      IMHO, the ranking of the
      best stocks to own are the following:

      #1 --
      CRN: CRN looks to have the best all around management
      team in the business. They have a very sharp business,
      financial and operational team, and alot of talent in the
      field. They also cover a broader span of revenues
      through their 3 divisions (prisons, halfway houses and
      juveniles). CRN is just about the only one that has given
      extremely strong EPS growth without any surprise charges
      ever year or so. CRN is also the only one who owns a
      large portfolio of real estate, but they need to sell
      it to get rid of some of their debt (I think they
      are/have been working on this).

      #2 -- WHC: WHC has
      a large market share being the #2 in the business,
      and seems to have alot of resources in their parent
      company (WAK). They have a strong international presence.
      The main complaint with WHC is that they seem to
      low-ball new projects, which the #2 player shouldn't be
      doing, and while they have some very talented people,
      some (not all by any means) of their top exec's are
      not preceived to be that strong.

      #3 -- CSCQ:
      They also have a broad revenue stream and have been
      beaten down like the rest. However, these guys always
      seem to come up with a "one-time" charge every year or
      two, and their top exec's don't have a good reputation
      in many circles. However, they do have alot of
      contracts...they just need to put more power into the field
      personnel to improve programs,etc.

      #4 -- PZN: it
      seems odd to put the biggest as last, and although
      their #1 market position is very compelling, their top
      management team has lost all credibility with everyone. The
      new investor group is interesting, but still too many
      unknowns. There is alot of upside here, but the lawsuits
      that are bound to come from their actions will be a
      distraction.


      Basically, everyone in this group is beaten down far below
      where they should be (so you probably won't go wrong
      with any of them). However, my ranking of the above
      is, IMHO, the choice of where to put the most of your
      money respectively, because to make the "real money",
      it will be the top companies above that will really
      break out of the pack .... and when this industry does
      come back, I think it will be in a big way.

      If
      you're willing to weather some ups and downs, these are
      great investments for both the short term and long
      term.

      Good Luck.

    • Gus, I agree with the caveat "professionally
      operated..." Slattery does not allow the professionals to
      operate. Did you know that facility managers cannot even
      buy routine supplies without Slattery specifically
      approving? There are good people here, but JS will not allow
      them to operate. Have you heard that Irving is on the
      way out?

    • with YSI, CSC is bound to become at some time in
      the future the preferred choice for agencies seeking
      professionally operated juvenile and adult facilities. I do not
      believe CEO James Slattery is standing in the way of that
      goal.

    • we ride thid boat... ups downs it's still floating.

    • Do you know something or do you hope something? Certainly the rumours are around about a sale to offshore. Major holders want results quickly from Slattery.

    • in the not too distant future you might want to reconsider your decision not to seek my advice.

    • Nothing personal, and I appreciate your response,
      but I'm not sure someone who bought so much of this
      dog at 7 9/16 is someone I should trust for stock
      advice. Have you got anything more than trust and faith
      to go on?

    • Trust me. I own 40,000 shares of Correctional Services Corporation's common stock. Bought at an average price of 7 9/16 a share.

    • I sure can't disagree about industry fundamentals
      and long-term prospects. But the big question is when
      will this industry start to move. People, including
      me, have been saying this same thing for years - good
      fundamentals, just hold on, etc. - all the while the stocks go
      nowhere. Meanwhile, while a dollar invested here is now
      worth 30 cents, a dollar elsewhere is now 3! So, I'm
      all for the long term, but I ain't gonna live
      forever!

    • Up, up and away. LTI 20+.

    • View More Messages
 

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