Another 900 bed facility announced in CA. It seems that when we wonder why we haven't heard news like this for a while....here it comes. This company isn't standing still and should be a dependable long term investment. It hasn't been shabby for the short term, either. Incarceration is definitely a growth business.
hey dataD, at last count whc had 50 facilities under contract. As far as I know cpv only directly is connected to about a half-dozen or so. The logical assumption would be that the same big money lenders who saw opportunity before will see it again!!
Your rationale please for a price of 50? That would be trading at 45X '99 numbers growing at 25-30% annually although this will probably slow into '00 and '01 so how do you get to 50? at 31 your yr end predition your at 30X '99 a slight discount to their growth rate - more realistic but definately above a market multiple. When you see their access to captial snuffed it will be very hard to maintain that growth level. The won't sell equity because of the parents control issues so how do they grow other than management contracts at 10-15% margins? Just some questions.
This stock is about ready to rock and roll. The low 20`s is nowhere for a strong company like this to be. Last weeks moves were very nice, but not near what will be happening soon. A little profit taking will affect this weeks price, then watch out. I see $30 by years end - maybe more & maybe sooner. THEStkrePETER