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Corrections Corporation of America Message Board

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  • newMK newMK May 24, 1999 12:22 AM Flag

    The good news is ......

    Seems like debt to equity will be 1:1 at the end
    of this year or early next year. So what. Whether
    it's 1:1 or 2:1 doesn't really matter. All that
    matters is that each new facility pays for itself. If
    they can borrow at 10% and earn 20%, or even 11%, it's
    an accretive deal. If they keep doing this at the
    pace they are currently doing it, the stock price will
    ultimately go up.

    If the stock is still 14 a year
    from now, we won't care. Someone else (smarter than
    the analysts)will own it. If I had the money, I'd buy
    every share at 14, sit on it for a couple years,
    leverage it like crazy, then take it public again. There
    may be others who do have the money and feel the same
    way. Doc would never, I presume, do it now; but a year
    from now, who knows?

    Speaking of analysts, I
    love a recent on-line brokerage ad that shows a guy
    grudgingly waking up, taking the train or bus, riding in a
    crowded elevator, sitting down at his computer, and
    making a futile cold call. The ad ends with, "If your
    broker's so smart, why is he still working?" My feelings
    about the analysts. Condescending or not, Cleo, JMHO.
    Stephens, Bradford, Legg-Mason, PaineWebber, etc. - what a
    bunch of geniuses.

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