Wackenhut is a leading company in the incarceration outsourcing business. They build and run prisons and provide related services (like prisoner transport, etc) for government agencies at various levels throughout the world. They are not the leader in the market (see CXC), but are definitely a player. I think the business has a future, not only because of high crime rates, but because of the cost-cutting pressures on govt agencies . By outsourcing these services, these agencies save money and have more to spend on other (probably wasteful) programs.
Hi WHC followers, I'm a gold-bug and the reason I'm bullish on gold is the same reason I'm bullish on companies like WAK and CXC that being that I see a future that looks more like "Bladerunner" than the "Jetsons". All you have to do is look at the 20th century migration patterns in the US. "White Flight" from the city to the suburbs and now the the new migration by "those who have", call it "New Frontierism" to places like Colorardo, Wyoming and Nevada. Lets face it, rightly or wrongly there is a view that larger cities, especially the inner-city are a strain the average tax payer want to do with out. "the coast is toast".
Further, the rapid growth of gated communities, private alarm system co.s, karate studios, right to carry a gun legislation and the fact there are now more "private police-officer" than there are on the public payroll.
Because of economies of scale companies like WHC and CXC can pitch to every level of government and make offers they can't refuse. They just cant't justify to the tax-paying public the expence of maintaining a "public-service" when the private sector can do it cheaper.
Because of low interest rates and the banks easy credit policies (leading to massive consumer debt) the unemployment rate is low now but it will no alway remain so. When things inevitably change, and they will, interest rates and unemployment will rise so will crime ,incarceration and the price of WHC. The bleaker the future the better for WHC.
WELL, IF YOU READ THE B.W article it pretty well summed it up WHC, IS BUILDING prisons all over the world now in PR, AUSTRAILA,UNITED KINGDOM,IRELAND, AND currently expecting to get a nice contract in SOUTH AFRICA very soon, of course as wellas the USA, cant think of a better buy right now, THE STOCK IS NOW ON SALE.. NO ASIAN PROBLEMS earnings are on the constant rise, 4 prisons alone opening this month of december..
Thank you for the replies. I guess my original question was "who" is Wackenhut, really just out of curiosity. Peter Lynch suggested that we should invest in companies with boring or strange names (and things we are personally familiar with! I will leave that one alone).
Anyhow as soon as I can dump some hi-tech losers I will buy.