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Corrections Corporation of America Message Board

  • rainbowroygbiv rainbowroygbiv May 25, 1999 9:31 AM Flag

    FEDERAL BUREAU OF PRISONS HAS

    a web page that shows facility utilization % by
    facility:

    http://www.bop.gov/weekly.html

    If you go to this page, and scroll down to the
    privately managed prisons section, they show data on the
    Eloy Detention Center. As I understand it, this is a
    CCA/PZN facility for federal inmates. The data they show
    on the page is as of May 21,1999. It shows only 1195
    of 1500 beds occupied, 79% utilization.

    This
    does not seem to jibe with the press release that was
    put out by the comapny which indicated all beds in
    the federal system are at 100% capacity.

    Does
    anyone understand this? Is this definitely a PZN
    facility? Are all the beds supposed to be for Federal
    Inmates?? I am confused.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Most facilities estimate costs based on a 95%
      occupancy rate. There is usually a lot of inmate movement
      (to hospitals, other facilities, trial locations,)
      and facilities are rarely, if ever, full.
      Often
      beds are left unused in case of emergencies, or
      sidebar contracts held with other law enforcement
      agencies.

      Many facilities house different types of prisoners.
      Some arrange to accept county or out-of-county
      detainees, state prisoners, Border Patrol/INS detainees,
      etc. So, a facility may be at capacity, but have a
      variety of inmates, not all of one designation.

    • really trying to get to bottom of this, if can
      understand a few key issues, would be helpful. stock seems
      cheap, prison industry has had great fundamentals, and
      pzn dominates the marketspace. however, also some
      inconsistencies i need to work through to get comfortable
      (previous post). chatter on this page seems to have died
      out?

      • 2 Replies to rainbowroygbiv
      • Eloy has enough "room" to accommodate as many as
        1500 inmates, its "rated occupancy."

        However,
        due to inadequate sewer capacity serving the
        facility, the BOP has "certified" its capacity for a
        maximum of 1204 inmates. This lesser effective capacity
        has prevailed for several years and Eloy has not
        exceeded its BOP limited "certified capacity" nor is it
        presently contemplated that the sewer capacity restriction
        will be relieved to enable utilization of Eloy's rated
        capacity. Staffing @ Eloy has been set at the 1204 bed
        maximum level for the past 3 years.

        If 1195 beds
        are occupied, that would represent 99.25% of Eloy's
        certified capacity.

      • See 1800 through 1900. Lots of good info, pros & cons, some T/A also.

    • And doesn't the new legislation, if passed, allow
      for payouts of 90% instead of 95%? I'd love for PZN
      to have the opportunity to retain more earnings.
      While more retention by definition reduces dividends it
      also reduces borrowing and stock issuance.

    • understand he is mad as hell..for those that do
      not know ..tom west point founder of company..not
      doc..tom brought in doc in the begining...still owns
      almost 3,000,000 shares andnot only does not work at
      company but has no son at company that got 5
      million...toms dropped almost 100 million wonder why he is
      hot....things will change.....also board member monroe carrol
      founder and pres of very sucessful public company central
      parking symbol csc.largest in the world..he is
      embarrassed does not run his company ..learned the real
      doc..new member ...things will change...finally some good
      news

    • I actually was looking at the stock today as if
      it would hit my target of 11 1/2. When I looked at
      the buy/sell side there were 20 bids and 500 asks.
      That told me there might be room to go. I have to say
      I am surprised. Unless the institutions are scared
      at the recent events and unknowns from management, I
      can't understand why so many shares were up for sale.
      Maybe they are dumping before the end of their quarter
      so they don't have to show it on the reports. You
      would think they would wait for the dividend.

      In
      the mean time, thanks for the very informative
      discussions. You have two very informative writers in Flipper
      and Quadrophile not to leave out any others.

    • The answer is yes & no.

      Sometimes they win
      prisons/contracts through a competitive RFP (request for proposal)
      process, which come with a specified number of prisoners.
      SInce this is a competitive process, margins often get
      bid down.

      Often, PZN/CCA will build a facility
      speculatively, and then hope to find prisoners (out of state,
      in-state, feds, etc.) to fill them. Historically, this
      strategy worked well as there was huge undercapacity of
      prison beds and they could get good prices for their
      available bed space. Now, this strategy to me seems to have
      a much higher risk profile than it did
      historically.

      A fair portion of the new CCA/PZN new facility
      announcments are "speculative" builds. Read the press
      releases, there is often no concrete info. out there about
      who will fill them. A lot of capacity coming on-line
      in Georgia for example, and questions about where
      prisoners will come from to fill beds.

      So, the
      answer to your question is both.

      My
      thoughts/opinion.

    • no but there is a lot more people who put faith in your word than the annalist.

    • The press release regarding the lawsuit indicates
      that the law firm is looking for a "lead plaintiff."
      Vultures, sitting on a tree!

      Anyone who joins in on
      a suit such as this is lucky to get 10 cents on the
      dollar.

      On the other hand, Doc has invited it with his
      selective silence. This is the most ridiculous PR blunder I
      have seen since I've been in the market.

      Since
      the future of the company is riding on the ability to
      sell more stock, it is absolutely imperitive that Doc
      go on CNBC and clear the air by answering tough
      questions. If he thinks he can just continue as before, he
      is hiding his head in the sand.

      Companies do
      not normally respond to posts on boards such as this
      one. that is understandable. However, it would appear
      obvious that when your stock drops to 1/2 in a week, in
      response to a PR screw-up, you should try to improve the
      PR.

      Doc, rather than just buying cheap
      shares, couldn't you try to do some damage
      control?

      Wile E.

    • I can't imagine them allowing a potentially bad employment number to disrupt pricing. That would not be wise - hope they get it done today or tonight.

    • I'm with ya. Went in large today. Hope we,ve
      found the bottom and start to re-trace. By the way,
      could Tn & Tx also be R2D2 in disguise? We haven't
      heard from him in awhile. Maya,it may be the time to
      double up, only my opinion, but I've put my money where
      my opinion is. Good luck! Let's see if we can get a
      bounce in here. Remember, buy on fear, sell on greed!

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