My sources have indicated that the inmates at the
CCA-operated South Central facility have taken over the
prison. This is the same facility that has had a number
of escapes over the last few months. I'll keep you
Yes the sccf incident was blown out of
proportion. It did have all of the rumblings that could have
lead too a major problem. If the commish. of the St of
Tn had not have quickly and call in the state
troopers and a correctional officers from a locale state
ran facility this could have been huge. Why is it
that a cimpany is paid by tax dollars, they botch it
and the Tax payer get stuck with the bill again.
I'm just a stockholder, not an expert in this
field but I don't understand the problem with State and
Local law enforcement assisting (at taxpayer cost) with
a prison break from a privately run prison. I would
assume that this occasional (very rare) cost is factored
in to the operator's contract. If prison breaks
became too frequent, the operator would "pay" for this
either by losing the contract or through their contract
Question for you - when a local
or state run prison experiences a prison break, does
that Prison's operating cost get hit with the cost of
State Trooper assistance? I'll bet not.
always, nobody's asking for preferential treatment. Let's
just make sure we are always comparing apples to
Your title serves you justly. 1st you fed false
information at the beginning of this new. I suspect the
information you are feeding now is also false. This is just a
speculation from the inside.
If there was a situation
at any prison (state or private) that was large
enough scale, the state troopers and other law
enforcement agencies would be called in. If you can't
understand this I will explain. Like us there job is public
safety. Regardless of the cost to whom we in the
facilities along with law enforcement have the public
interest as a #1 priority.
If you would like to
compare apples to apples, when a similar situation were
to happen at a state facility. The cost wouldn't be
shown for that of the highway patrol. Therefore, let
apples be apples.
Thank you for your post and
work from the inside glittergoddess. I hope I
remembered your name right.
Can any PZN employees provide info on the alleged
prison take over? Can't find related news anywhere. Does
anyone have the telephone number. I would like to call
and see who answers the phone. Perhaps this just
bovine excrement which has been known to appear on this
thread (rarely!!!). G
R7 is correct about the Davis Bacon. Luckily some
states do not have it and it is typically where there is
not a big Union influence in the state. Double the
cost may be little exagerated but union/Davis Bacon
does cost more. There has also been some pretty bad
fraud cases with Davis Bacon to inflate
Much of the cost savings is from simplicity of design
as I stated before. This is a savings in material
and labor cost. As far as R7's financing this can be
offset by the governmental body financing and
maintaining ownership of the facility as they would if they
were to operate. They pay for it one way or the other.
Either by the cost per inmate if private pays to build
and own or by obtaining the funds themselves.
R7's contention that taxpayers subsidize the private
construction would therefore be correct. So if that is the
case the taxpayers are better off to pay for and own
the facility and only pay private as operators. Not
privates first choice, but if you look at PZN's owned vs
operated you will see that they will do it.
You think stoppage of equity sales was a tacit
admission by the management it is STUPID to continue doing
so at such depressed prices - I think everyone would
agree with this message but others might say it
differently. Yes, management recognized the stock is
underpriced and stopped the sales because while they aren't
technically dilutive, debt financing is financially preferred
given this stock price and the present cost of
Why couldn't the same thing have been done in the
'old' CCA skin? IMHO, in RETROSPECT I think you might
be correct. However, you have to remember that at
the time Doc made the decision, REITS were money
magnets. Raising equity was very easy for REITS and Doc
was no doubt heavily influenced by the huge stock
price appreciation seen in the original PZN. I think
Doc saw the coming decline in management contracts
and correctly saw that building/owning facilities was
going to be the game. This of course would require a
huge amount of capital.
Why do I say you
"might" be correct? Let's be realistic, when CCA was $40
a share, industry and company growth was forcast to
be 35-40%. If Doc had done nothing and the (industry
and company) growth dropped to ~20% as it now is,
what would have happenned to CCA stock? 20 sounds
about right to me. So CCA would be out there right now
faced with today's same challenge - issue equity @ $20
or hit the debt markets.
So in retrospect, it
seems that a whole lot of pain and gyrations were gone
through to get to where we are now but I think we would
have been here (~ $20 a share) either as old CCA or
I think Doc made the best possible
decision given the available information at the time. He
couldn't forsee the unprecedented disdain investors
started showing REITS last year. I suppose he is guilty
of that. He also couldn't maintain the company's and
industry's 40% growth rate. Guilty as charged here
The bottom line is that "we are where we are" and
each investor or potential investor should make their
decision looking forward. I've benefitted from your
previous posts and look forward to the future ones. They
need not be Happy posts; critical posts are much more
useful than cheerleading posts but let's concentrate on
today's and tomorrow's challenges. Plenty lay ahead.
1)"Any public facility would be all over the
front pages if a similar incident happened". Yeah,
right. At a public facility that event wouldn't make it
outside the prison walls unless the warden wanted it out
and the inmates would have gotten the shit beaten out
of them (and, by the way, most people reading a
story like this think that when prisoners repeatedly
don't do what they are told they should get gassed). I
read the front pages (and everything in between) of
many newspapers every day and in the past year I've
seen more negative news on CCA/PZN than what I've seen
on all the public facilities combined(check out 60
Minutes tonight, looks like we've got another one coming)
yet what share of the total market does CCA have?
About 55% of the 7% that's been penetrated or 3%. So
they have 3% of the total market share but get as much
bad news as the whole public sector combined. CCA
must be REALLY bad at what they do. I guess that's why
they've been growing at only 35%.
2)You imply that
PZN does a good job of controlling the press. Boy, as
an investor I wish that was true but it is perhaps
their weakest point.
3)I'm sure there is
established protocal for dealing with an incident such as
this one. I would be very surprised if PZN's protocal
is substantially different from a public facility's.
First you ask, then you gradually get more aggressive.
Just what would you have done to get the inmates to
follow orders after your orders were not followed and
I'm sure they were warned that gas was the next step?
Had some one-on-one breakout sessions?
that I'd never posted the earnings release and CC
info which I usually do.
intriguing or not, are due out tomorrow, not Thursday, as
you'd said, so I've been sitting here for probably a
week or two thinking that I'd already let everyone
know. My next post will reveal all.
I previously thought the issue was Private vs.
Government but it is my conclusion that we are really
engaged in Private Sector (which happens to be non-union)
vs. Union. Of course, these days all government
workers are for all practical purposes unionized.
Government workers are "protected" more so than Private
Sector employees. Gov workers are usually in
environments where years of service means more than
performance. Just my opinion anyway.
I don't think we
have to be concerned with anti-private sector
legislation going anywhere unless the big Bore wins AND the
Dems wins the House and Senate. For now I'm sleeping
Lets tell all the prisoners just to go home it
was all a joke. And another idea, lets let the
congressmen who sponser these stupid bills to work weekends
at the prisons. BETTER yet, they can stay at their
homes!!!! SInce this country has only half the beds. I
imagine Springer has some extra beds in his house. EVEN
BETTER YET...how about YOUR HOUSE Sunites. Got room for
The Unions could do this country
better by aiding in the process not trying to make it
worse. It's very sad. Make them illegal would be the
best choice. THey half finished anyway.
and have a nice day.