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Corrections Corporation of America Message Board

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  • newMK newMK May 20, 1999 9:46 AM Flag

    INSIDER ALERT-PRESIDENT SOLD 20,000 SHAR

    <And when this leverage results from something
    other than growth, when its only promises to be
    decretive, that's a big negative.>

    1) leverage IS
    coming from growth. This is new prisons we're talking
    about.

    2) each deal is accretive or they wouldn't do it.
    They will borrow the money at 9% or 9 1/2%, and get a
    20% (AFTER the increased OPCO fees) rate of return.
    How on earth do you figure that's
    decretive???

    Sure there is all sorts of business risk. Ther is also
    risk in hotels, internet companies and drug
    manufacturers. There is risk in getting into your car. There is
    risk buying a CD (change in interest rates,
    etc.).

    There is also a matter of confidence. You either trust
    the bastards or you don't. If you don't, get the hell
    out quick.

    Doc has built something pretty
    powerful. He's not perfect, but he's trying to get richer.
    I'm happy to take a chance and go along for the ride.
    The fundamentals are too overwhelming not to.

 
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