Any insights as to why CXW has sold off to multiyr lows? Earnings weren't quite as stellar as anticipated, but what the heck. This is a stable growth company...no crazy credit exposure/financing issues if you believe the filings...good business for a recessionary environment as well.
Have heard concerns that the incoming gov't adminstration may seek to reduce reliance on private jailers, but why? Too much capital required to build new beds that the gov't simply cannot afford to dole out given their other priorities.
Oh and competitor GEO trades at a higher PEG multiple and operating margins are significantly less.
I'm just starting to follow this stock. I've been waiting for it to break down soley based on macro economic conditions.
I believe the U.S. will experience levels of social unrest that we've never seen before in the last 40 years. Gov't cannot handle what's coming. I believe this stock has a future in a future that's very scary for this country.
I live in an affluent suburban area in N.J. and have had three burularies in my immediate neihborhood. I'm applying for a gun permit and have been told permit applications are at a high. Inner cities no doubt will become more dangerous,but the security of suburban life will change as people get more desperate.
What we are facing in our economic future is a once in a lifetime phenomena. Life will change going forward for the worse. For those that believe this is just a rough patch and things will get back to normal soon I must say you are naive.
I'm gonna start accumulating CXW at these levels. I'm not buying it all here because I feel their could be some more downside considering forced selling and fear selling.
I've been a short seller for 1 1/2 years now and alot of sectors have been beat up so bad that the risk in shorting is no longer there in some sectors. MCD is the best short out there right now IMO. They can't keep giving away food causing great same store sales w/o eventually feeling it in their earnings. Don't believe the hype.