Corrections Corp Rated New `Buy' at Morgan Lewis
2002-02-07 08:06 (New York)
Princeton, New Jersey, Feb. 7 (Bloomberg Data) -- Corrections Corp of
America (CXW US) was rated new ``buy'' in new coverage by analyst Henry J
Coffey Jr at Morgan Lewis Githens & Ahn. The 24-month target price is $26.00
"Can you give me a few reasons why you
think the management of CXW is good,
I can. They've done a good job of
financially stabilizing the company from
the mess left by the previous managment.
Clearly the banks have more faith in Mr. Ferguson and company because they're now allowing payment of preferred dividends.
I expect further good news on the
financing front as well. The lower interest rates will make a lot of weak people strong.
Their results should speak louder than my words. In my opinion they have made moves that are in the best interest of the investors and the company instead of a select few. Words that were never mentioned are now common practice. Budget, accountability, and honesty to name a few. Hope this answers some of your questions. Once again I am proud of the way this company is headed.
Don't worry about the bank deal getting refinanced. That is a second quarter event and CCA will save a bundle with its new deal. Take it to the bank. Bank market conditions have improved markedly in the last 3-4 months. I think you'll hear good news on this front within 60-90 days at the latest.
Some good points, I agree with many of them princess. IMO interest rates dropping from 6.50% to 1.75% in a year's time is saving what might have be a total collapse of PZN/CXW. They need to get this refinancing package thru when rates are still managable.
Barron's recently discussed the importance of capital gains taxes and the positive effect on the Fed Gov't coffers. There is no doubt it had a large effect on State Gov't budgets too. I know what I paid in past years to my State and see what I will pay this year. The State's are certainly getting a lot less from me. This will probably take a bit of time but I think this should come home to roost in adding a nice slue of new business for the private corrections field....no matter what the socialists want to believe.
Princess, Please understand that in the AW's mind this is not a forum for informed, intelligent, thoughtful discourse. With himself, it's my way or the highway. If you don't agree with him, you are not only disloyal to the company, but also of low character and morals.
I for one enjoy your informed, intelligent, thoughtful ideas.
Don't go away.
I will bet everything I am worth that this analyst[Henry Coffee] did not just happen to come out with a buy this shortly before the conference call without being damn sure the conference call will be very positive. The stock will go to a new 52-week high [probably] shortly after the conference call.
Be careful the princess will find some deep dark plot involved. The princess was damaged so deep by the previous bunch that she might not never overcome it. The bottom line is you do your research and you make your own choices. Sorry Princess there are some honest people running this company. Get on or get off.