I agree with your post on the CPV board regarding the future outlook for CPV. I was lucky. My firm belief in the future of crime led me to buy CPV shortly after it came public. So, I am a very happy camper. Issue now is trying to determine when and if it would be a good idea to buy more. I do not quite understand the company. It seems to be content to remain small. Is that good or not so good. I do not know. If they are happy with their current profits and refusing to get involved in more prisons until the "right" deal comes along, maybe that's good.
oystergrouch I think CPV fell victim to a problem REIT's can have. Their share price fell below book value and their cost of equity soared. They just didn't have the money to grow. Unlike PZN, which hide debt in a private-sub., CPV did nothing which was the right thing to do versus trying to grow with debt only.
Recently CPV did a stock offering so finally they have the cash to start buying. I have talked to Chuck Jones many times and I trust him to the right thing and buy only if it makes sense for CPV. His record proves he did a great job during their hards times against a firm (Wachenhut) that could not have been easy to work with. They just wanted to cram more of their portfolio in it (my guess) but he still the right thing and did not add more WHX prisons. He did buy 2 prisons from CXW at a wonderful price and leased them directly.
The business model has lots of advantages, they don't need to fight unions and they don't care who leases them.
But the issue is cost of capital and matching maturities with their borrowed funds and their leases. Rising rates with hurt them.
I'd like to add back more during a REIT sell-off which always comes around.