Interesting action today. Seems that there were a
lot of holders ready to sell but plenty of buyers to
come in on the little dab of good news and hold up the
price. This stock, without doubt, is undervalued at the
present time. Today IO told me that 54% is held by WAK
and only 30% by institutions, with very little held
by WHC insiders. That means that it is on the
shoulders of individual investors to help this stock back
up by NOT SELLING JUST BECAUSE THE PRICE GOES UP A
LITTLE BIT-YOUR PATIENCE WILL BE REWARDED IF YOU ARE
STRONG WILLED AND HOLD FOR A WHILE!! the sector is out
of favor thanks to the idiots at CCA, who cost many
of us dearly, but that could change quickly with a
short stretch of upward movement.
I'd love for
someone to tell me how full of s--- I am, this is the
deadest board I've ever seen!
When CCA spun off their REIT and then folded
their primary operations into the REIT, it confused
everybody that was watching. Personally, I think they made
the move to hinder WHC's REIT spinoff, but didn't
realize the overall negative impact it was going to have
on their own stock value.
operations in the REIT gives CCA some tax advantages which
makes them a bit more competative, but they stubbed
their toe trying to kick WHC in the butt.
was another off day....let's hope it improves for all
Take a look at the numbers CRN @ CSCQ have done
better than the others as for as stock price but how
manny new contracts have they gotten lately (inwhich
they did not buy or take over) WHC and CCA have
actually been AWARDED new contracts, my opinion for what
its worth is CCAs merger scared the shit out of
everyone and everyone is sitting tight right
Look at others in this industry...CCA, CSCQ,
etc...and I think you'll see a general trend. Overall, most
of the companies in this sector who are worth
anything are reporting good results, but stock values
continue to be slack. It was this way early in 1997. In
fact, the stock was in the range of 16 then (and a
terrific buy), but it bounced back strong and by
September/October 1997 it was in the 30+ range.
will catch fire again eventually. The target price I'm
hearing from the analysts is still about $34, but it's
been that way for a couple of months and is in
reverse. I hope this is a good buying opportunity, cause
I'll be getting more if it dips much further.
It's like tying to catch a falling knife. I keep
buying at lower and lower prices, but it keeps falling.
Does anyone have any insight to why this is happening?
Is it the sector in general or is there something
that is underlying that is driving the stock price
down that I'm not seeing? I'm with Prudential and they
tell me to buy. I've done fairly well in the market,
except WHC has baffled me. Any help would be
Maybe it was caught up in the overall market
sell-off. Last I checked all 7 analysts who followed this
stock recommend "strong buy." There is only good news,
with projected 30% earning growth. The faithful should
really look at this as a great buying opportunity.
I just put together a lengthy response, and
somehow it didn't post. The bottom line is
this...privatization companies like WHC can do it all from choosing
the site, to financing the purchase and construction,
to building the facility and running it in its
entirety including food service and medical. In addition,
they take responsibility for the facilities
maintenance and assume whatever liabilities the government
would have had otherwise.
With a quality
operator like WHC, there's no question that there is a
real savings vs government run. In addition, you have
better quality facilities and, because of excellent
training programs, better run facilities.
example, look at Puerto Rico. The government run
facilities are in turmoil because the gang members housed
there are running the facilities. Puerto Rico's only
hope if privatization, and they are slowly and,
generally, successfully integrating that
Privatization is here for good. Nearly all states are now
involved in some form of transition. All we need to do is
figure out how to get this sector back in favor with
Wall Street. We're very close to a 52-week low. Good
luck if you join us.
I'm considering WHC. I personally like the idea
of privately run correctional facilities. But my
concern is in the long run and with the "liberal
mentality" of our governments. Is privatization of this
sector going to be allowed to grow and continue? The"
thinking" being that government is the only entity capable
of "fairly" and "safely" running a correctional
facility. Any thoughts?