Uncle Sam will not let CA or any state go under. There is a greater moral hazad to let states fail than saving bankrupt financial institutions. This stock is incredibly cheap and should trade back up to the $15 area in short order.
GEO earnings to reported soon and stock will be handcuffed until then. I'm looking for a re-test on GEO earnings and then BUY, BUY, BUY!
I agree that there is *tremendous* value here, but there is also some risk, as with any stock. Buying CXW yesterday afternoon @ $10.90 and selling it this morning @ $11.70 was an easy 7% overnight.
I've seen it said that 90% of a day's trading volume in all stock markets is made up of trend-followers looking mostly very short-term market and they may not care anything about fundamentals. They mechanically short stocks that go down and they automatically buy stocks that go up. Quite often it takes three days for a stock to bottom out after losing almost 30% in a day. I don't need to worry about that here. Been there and done that too many times! Watching the trading today, there was plenty of selling at $11.70 so that's where i got out. If tomorrow takes it lower, i may buy in again. Volume didn't seem high enough to signify a reversal.
Does anyone see any strong technical indicators of a bottom here?