Losing Arizona doesn't justify a 20% drop in share price. Fundamentals seem to be there. Should bounce back very soon.
The market is expecting other states to follow suit. Also, does the 3% include Arizona funded prisons operating outside of Arizona?
CCA made about 56.5 million in revenue (~3%) from the recently canceled Arizona contracts last year. This is a classic overreaction and what we're seeing is fear-based selling. Long private prisons.
It's not just Arizona...it's almost everywhere. Appleton, MN, closes on Monday, probably for good.California City, closing. Huerfano Colorado, closing sooner.CCA is desperate in AZ. They've approached at least three diffent cities about building spec pens: Winslow yesterday, Prescott Valley and Wickenburg in the past two months.
And the reason for these closings may I ask? I'm fairly new to this particular CXW board. Also I see this stock has done great since 2 yrs ago when this was posted.