I think the US government is taking seriously the charges against Wackenhut, which is the cause for few new contracts and the closing of the Austin facility. Why else would the facility shut down. Also, if the case of the prison riot can be associated with these charges, the punitive damages from the upcoming lawsuit and the bad PR could be severly damaging.
The public is already against privitizing the prison systems. The company is already realizing lower growth than it projected because of the fewer contracts.
Do you think there could be a reason why all the prison management companies have taken a beating over the past year when most indexes rose to new heights. Institutions won't touch this company even if it appears to be "cheap" by some people.
Willy, if you are still out there, could you post where you received your information.
The Gov't idiots are slowing private prison contracts because of their political butts, period. As the Gov't gets bigger and bigger there are more pigs in the pen who vote for themselves.
If the Gov't DID it so well there would be no overcrowding and no need for private corrections. The Gov't has failed at doing there job that is quite apparent.
Monopolies don't work. Any first year high scholl student can tell you that. And Gov't makes decisions for too many wrong reasons. Taxes are the highest in history when considering all levels. This can not continue or we go the way of Mexico. History has MANY examples of it.
public is against, and that's higher taxes. The public realizes that the privates do as good a job (or better) than the public and it is done without passing any prison bonds or raising taxes. Sure...there are incidents at the privates (which get blasted all over the press), but the rate of these incidents are twice as high at the public institutions as compared to the privates (for the source, see the "1998 Corrections Yearbook" published by the ACA).
This is an industry that is destined for high future growth, and the clean private companies should do well (and the others will probably get bought out at premiums to their prices today).
As the privates have seen over the past several years, the flow of contracts is somewhat of a rollercoaster, but in the end, you can pretty much count on 20+% growth...which is over twice what all these private corrections stocks are trading at.
I think there are better run private corrections companies than WHC, but that doesn't mean that WHC is not a solid company and a good bet for stock price growth.
When the dust settles, and the technology boom eventually comes down to earth (not if, but when), the strong fundamentals of private corrections will prevail.
IMHO, I concur with an earlier post that put the order of best picks in the industry as CRN, WHC, CSCQ and PZN .... but ALL should do well.
The earlier negative posts are clearly union/government-related people/disgruntled former employees (person?) playing back and forth with each other (or themself).
Good Luck to the longs in this industry...IMO, the return will be well worth it.
Oh, and to the poster who has a moral problem with this industry, realize that there are companies in this industry that put alot of excellent treatment into their prisons to improve the lives of these people who will eventually come back into society.
I am not sure what to make of this message board. Anyhow, this is the last time I check it, and I've said my 2 cents worth. As I said before, I found it difficult to find info. fortunately there are a few people on this board that are informed. I found some more information yesterday on Jena. Apparently there were over 130 complaints against this facility, to one gov't agency alone. Most incidents go unreported. Harassment and abuse are also used to deter inmates from reporting. Also I received a quote from a prison rights advocate yesterday from an industry insider posted in a 1992 edition of SPY Magazine, "this company is positively evil. It is known in the industry to call them when you have a dirty job to be done." I can't verify the truth of this statement, but it seems to counter the idea that private institutions are doing a better job. I just wonder what is going on in the Latin American institutions. I don't doubt that there is a tidy profit to be had in WHC at its current market valuation. Again, it is just to miserable a way to make it, for me.