The GEO Group, Inc. Message Board

Obama Sees a Middle Class Tax of $I.7 Trillion Increase as a Victory read this and vote for Obama if you like it.

–Obamacare law contains 20 new or higher taxes on American families and small businesses–

The Largest Tax Hike in US History has just been upheld by the Supreme Court of the United States and President Obama sees this assault on the middle class as a victory.

The already unpopular 2010 health care reform law has been converted by the court into a $1.76 trillion tax increase funded by escalating taxes to be paid the vast majority of taxpayers. The high court’s ruling leaves in place 20 tax increases in the health-care law, of those, 12 tax hikes would affect families earning less than $250,000 per year, including a “Cadillac tax” on high-cost insurance plans, a tax on insurance providers, and an excise tax on medical device manufacturers. By formally converting ‘Obamacare’ into ‘Obamatax,’ the court allows Obama to raise taxes on the middle-class.

The decision is a distressing blow to taxpayers and represents the single largest tax increase on young people in the nation’s history. When it takes full effect, the Internal Revenue Service will have immense new power and authority to persecute and prosecute a whole new group of taxpayers.

If the law takes full effect, it will devastate small businesses and destroy any chance for a sustainable economic recovery. It will add trillions of dollars to the national debt and push the country toward bankruptcy even faster than current projections. Any individual who believes that
this decision must be overturned must do everything possible to undo the damage that has been done, especially at the ballot box on November 6.

Ingenioso,...is hard to go wrong with a 16% yield
at PZN...right...?. eventually the correctional
stocks will do better than this past six month, but
again would not take much to outperform that sort of
low record...LOL
With $1.27 earnings in 2000
places this growth stock at less than half its growth
rate, not a bad deal in my book, and the downside is
negligeable at this point.

Agreed on all counts. I follow PZN, WHC, CSCQ,
and CRN, and have done great TRADING the last 3 and
poorly on PZN. Currently have 94 shares 0f WHC in my 9
month old daughter's Education IRA as an INVESTMEST
(commissions preclude trading her small acount.) These 4
stocks seem incredibly cheap at todays prices. The top
news item "The Wall Street Transcript Publishes
Private Corrections Facilities Report" speaks favorably
of all but PZN. This may boost WHC short-term. My
thanks go out to analyst Michael Hughes of J.C. Bradford
who said to avoid PZN. Bought some today at 10.5625
(off 3/8) for my IRA. I trade for a living. Analysts
simply provide short-term noise for me to exploit.

The Wall Street Transcript Publishes
Private
Correction Facilities Report.

NEW YORK, Sept. 29
/PRNewswire/ -- Four leading analysts examine the Private
Correction Facilities Industry in the latest issue of The
Wall Street Transcript (212-952-7433). this report
features:

An in-depth roundtable forum on Private Correctional
Facilities with four leading analysts: Michael Hughes of
J.C. Bradford & Company, James Macdonald of First
Analysis Corporation, Brian Ruttenbur of SunTrust
Equitable Securities and F. Thomas O'Halloran of Warburg
Dillon

One of the biggest drivers for private
correctional facilities is the massive increase in the prison
population, Macdonald states, ``The big advantage that the
industry provided was being able to build those beds in 12
to 18 months, instead of two to four years. In
addition to cost savings, the increase in population is
the primary driver. A lot of states are under court
order to reduce overcrowding.''

Presently, only
about 6% or 7% of all prison beds are managed by
private companies, and the growth rate forecast for this
industry is 20-25%, O'Halloran asserts, ``So even five
years out, the level of penetration would be between
10-15%. But over time, I think the profit motive, and the
ability of privately run companies with a profit motive,
and not with a government bureaucracy undermining the
strategy is the better model, and will be the one that
will prevail ultimately. The profit motive should
drive ongoing efficiency improvements, as well as
better rehabilitative programs; not so for the
government.''

There is more than cost improvements involved,
Macdonald declares, ``I also believe that there's a very
significant quality improvement. It hasn't been proven yet,
but I think over the next couple of years you'll
start to see data about the fact that the private
companies are trying harder, and doing a better job,
especially in getting these inmates ready to be
released.''

The panel goes on to offer recommendations about
which sector stocks are most likely to reward
investors.

Because the industry has grown its base, the percentage
growth rate is less, Macdonald states, ``On visible
earnings, Wackenhut (NYSE: WHC - news) and Cornell (NYSE:
CRN - news) are selling at just about 10 times my
visible earnings estimate, which assumes that all awarded
prisons are up and operating. For an industry, even if it
is 'only' growing at 20-30% a year now, I think that
is very, very low. I think it will be corrected as
soon as some of the negative publicity has time to go
away.''

The sector needs a catalyst for demand, O'Halloran
forecasts, ``What it is going to take is for the companies
to deliver on the numbers. It is probably over the
1999/2000 time frame that the market will finally reward
the companies with better multiples. Correctional
Properties Trust (NYSE: CPV - news) is carrying a very
attractive yield with very good growth prospects. I think it
is a very cheap, beaten up sector that with a proper
time horizon of one to two years will yield good
returns.''

Ruttenbur has a buy rating on Res-Care (Nasdaq: RES -
news), ``I see Res-Care as one of the best-managed
companies in this area. Approximately 20% of the company's
revenues are generated in the at-risk youth industry, and
only part of that at-risk youth is juvenile
corrections. The company is the largest provider of services
to mentally retarded and developmentally disabled
individuals.''

Hughes cautions investors to avoid Prison Realty (NYSE:
PZN - news), ``There are still short-term occupancy
issues at PZN. And the reason the dividend yield is over
16% is the real facility-level cash flow was about
half the dividend paid out in the last quarter. I
don't think borrowing to pay a dividend is the best
policy in the world.''

For micro-cap investors
looking for value, Hughes states, ``Correctional Services
Corp. (Nasdaq: CSCQ - news) looks compelling

SARASOTA, Fla., Sept 2 Correctional Services
Corp. (Nasdaq:CSCQ)

Vice President of Finance
Ira Colter said "While private companies operate less
than 4 percent of the country's jails and prisons,
Bureau of Justice Statistics data released this March
said the number of people incarcerated in America rose
almost 5 percent last year to 1.8
million.".

Correctional Services' Colter also said "private-run prisons
now exist in almost every state in the country except
for those in the union-dominated Northeast.".

on vacation. I didn't really expect it to
tic.
Returned to find out I owned WHC, when I never
expected
it. Looking forward to seeing it back into
the
middle 20s. Don't think it will take long <VBG>

OHhh...forgot to mention that today is a prime
example the market tanks 200+ points and WHC goes
up...!
Do you know why...?
Because is currently viewed
as a defensive stock...!
Crime increases in
direct relation to the health of the economy, take that
and place it under your pillow, and sleep on
it...LOL.

Four Main Reasons, as follows:
(1) The slowing
down in earnings growth from 40%+ in the last five
years to 30%+,
(2)the bad publicity by PZN,
(3)
the Travis County (Austin) contract in 2000, will
reduce earnings by 0.03 cents to 1.27 next year, and

(4) the riots in New Mexico.
This factors will
eventually come to pass, and WHC will resume its upward
trend. Markets have to have walls of worries to climb,
otherwise it would be a boring market place....LOL

punnished so hard lately?????

Thanks McPrision,....for making it crystal clear
the true pedigree of CRN, no ofense meant to any one
interested in said stock. It is confusing to investors at
time to read statistics on paper, sure glad paper
can't talk back...LOL. This industry has really only
two primary stocks, as I said before.