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Corrections Corporation of America Message Board

  • flipper_58 flipper_58 Apr 6, 1999 4:06 PM Flag

    So how's business??

    PZN has announced new contracts on 5,377 beds
    this year, 1,225 are existing facilities. This
    represents an 18% increase(5,377/30k) in ALL the beds PZN
    owns since CCA and PZN started buying beds. And this
    is just the first quarter. These new beds are
    estimated to cost $155MM.

    It's been my understanding
    this is the pace management had expected, $600MM in
    new business this year alone.
    By my rough
    calculations using 9% debt this will add $.50/share of new
    earnings to the firm, or in excess of a 20% growth rate.


    $600MM in new beds will add appx. 50-60% more beds then
    what is finished on the books now. Assuming the market
    value is 30-40% higher of a new bed once it's on-line,
    these new beds should increase the actual book value of
    the firm by 25%.

    Just thought you'd like to
    know why the share price is going down.

 
CXW
36.72+0.58(+1.60%)Dec 17 4:08 PMEST

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