1. Very positive report posted on Value Investors Club website. 2. Excellent management presentation at the Lehman conference in Orlando last week. The room was packed with hedge funds who seemed to love the story. 3. Lots of talk of California under the "Terminator" switching to private pay to save millions. 4. When the state of NH put out a contract to bid, only CCA showed up. What does that tell you about their ability to fill their empty beds and raise margins?? 5. There only real competitor, Geo, ticker GGI is focused on a large international acquisition that is not prison related. Geo is at 102% of capacity and has no "room at the inn". 6. Many of CCA's contracts are priced with CPI escalators. A little inflation will help their top line. 7. 4th Quarter run rate EBITDA is $235MM, projected 05 EBITDA is close to $300MM. With only $70MM of interest expense and $25MM of maintenance CAPX, these guys print money. 8. Does anyone really think the crime rate is going down? The 18-24 year old population is exploding right now, look at the demographics. 9. Historically the South and West used private prisons. Now the North is looking to go private, states like CT and NH are very close to outsoucing and CCA already won a contract to manage 1,000 inmates for VT. 10. This company was in the shitter 5 years ago. AES was .96 cents a year ago and is now $8.00. Those of you who continue to cry over losing money 10 years ago are missing out on a great opportunity. Go to the company's website and download their latest presentation, it is excellent and gives lots of details as to why this stock will continue to climb.
Just my thoughts. I own a boat load of stock and will probably buy a lot more before selling a single share years from now.