It is true that WHC looks like a bargain when using conventional financial measures. They have some cash and looking at the past performance, they have been increasing in revenues.
The only problem is that they have bad news overhanging, and from my experience, there is more news lingering out there. I know some people may take what I am saying quite hard, because they probably own long positions, but if you check non-investment/governement/news sources, you get a feeling that there will be few new contracts and probably more cancelations. The qualitative information supports that aurgument that WHC, on future earnings outlook, which is what stocks trade on, is poor.
I know a lot of stocks that have similar characteristics... PDX PPDI INVX IM DACG NCI SDRC HLYW URBN CATT FCFS ACRT CRDT MFI AN PPD there are alot out there... I could go on. Maybe in two years, WHC will be worth more, but I don't think the public wants prisons privatized, just ask the average joe.