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Corrections Corporation of America Message Board

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  • crosswindlandings crosswindlandings Mar 28, 1999 1:17 AM Flag

    Well, if misery likes company, I'll be w

    Hmm, interesting, this conference call. When will it be held, or perhaps it has just been held? I'm expecting long term not just a bounce, but a climb into the stratosphere.

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    • � Forber Magazine article titled "Discarded
      Values" (11/16/98): considers PZN an undervalued
      stock�."sales are expected to nearly double in the next two
      years to $900 million."

      � Value Line Reports
      on CCA (reports dated 9/18/98 & 12/18/98): very
      positive reports on CCA and very positive comments about
      the merger with PZN. Value Line is not in the
      investment banking business so their reports are considered
      to be more unbiased, independent, and objective than
      the reports of brokerage firms.

      � PZN is the
      largest private prison operator in the U.S.

      � In
      a recent article about crowded prisons (3/17/99) it
      was stated that "private prisons should continue to
      show 20 percent to 25 percent revenue growth annually,
      even though the industry has slowed recently due to
      investor nervousness over mergers, public oppositon and
      other political factors".

      � At the present time
      private prison operators, as a whole, control less than 4
      percent of the country's jails and prisons in the U.S.A.
      so there is significant and substantial growth
      potential beyond this point.

      � The nature of PZN's
      business is such that PZN often uses the investment
      banking services of several brokerage firms who, through
      their positively-biased stock reports, can be
      "cheerleaders" for the stock.

      � Estimated 3-year FFO
      growth for PZN is 15%. With earnings (FFO) for this year
      estimated to be around $2.64 and a growth rate of 15%, PZN
      warrants a stock price of $39. Looking out ahead two years
      from now (Fiscal year Dec. 00) its earnings are
      estimated to be $3.00 which would justify a stock price of
      $45.

      � EOM

      • 2 Replies to Jake1349
      • Its my personal hope that god forbid private
        prison revenue increases by these numbers that people
        seem to pulling out of thin air. That the political
        and personal opposition to this industry grows at
        double or triple fold to these earnings

      • Right now, the economy's in terrific shape,
        unemployment is incredibly low, inflation's low, etc. When
        things eventually turn some day, crime will rise, there
        will be a public outcry for more crime control and
        prisons, and PZN will be there to build prisons and lease
        them to governments, who can always staff them with
        government prison guards to satisfy those who are against
        private prison guards. PZN is a REIT, not a prison
        management company, which I think is more politically
        acceptable.

 
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