Recent

% | $
Quotes you view appear here for quick access.

Corrections Corporation of America Message Board

  • Raugars $2.00 likely. . . .
    Prison Realty,
    which is fighting several shareholder lawsuits, states
    that its own auditors have taken the highly unusual
    step of questioning whether the firm and CCA can each
    continue as a "going concern."
    Put into English, that
    means the bean counters are wondering whether this
    company is headed for death row or is a candidate for
    rehabilation


    �"It sends up a variety of red flags,"
    said Milwaukee corporate attorney Rick Bliss, who
    noted that he wasn't familiar with the Prison Realty
    situation but is an expert on the kind of financial
    language used with the regulators. "Somebody is warning
    you that either there is an impairment of capital or
    that there are other problems that are calling into
    question the future survivability of the
    company."

    Wall Street analysts who track the firm say the news
    out of Nashville is increasingly bleak.

    "The
    major news is the deteriorating financial condition of
    CCA," analyst Jerry Doctrow told The Tennessean
    newspaper in Nashville. "That puts additional pressure on
    shareholders to choose between this equity investor or the
    risk of bankruptcy."

    Prison Realty is urging
    shareholders to approve a massive restructuring deal that
    would infuse $350 million into a new company that would
    merge CCA, Prison Realty and other entities.

    The
    proxy statement sent to Prison Realty shareholders
    appears "to be painting a pretty bleak picture in order
    to get this deal approved," said analyst James
    Macdonald, who said the company isn't in danger of shutting
    down.

    This would be the second major shake-up of the firm in
    the just two years. Some shareholders charge that the
    first one simply enriched corporate insiders and
    created the very problems that now dog the cash-strapped
    company.

    So do Wisconsin authorities have anything to worry
    about? Is it time for the state to put the company on
    probation? Wisconsin, after all, has about 3,300 inmates in
    CCA prisons in Oklahoma, Minnesota and
    Tennessee.

    "Management of the company is clearly in turmoil and clearly
    has other things to worry about than managing the
    prisons that have Wisconsin prisoners," Macdonald said.
    "It's a situation for Wisconsin to monitor."

    At
    least one state agency, the State of Wisconsin
    Investment Board, was keeping tabs on the situation. SWIB
    sold its final 200,000 shares of Prison Realty stock
    last week, resulting in a $7 million loss. That's on
    top of an $11 million loss it posted on the stock in
    1998.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Can you trust bean counters hired by Doc?
      Normally management would pressure accountants to be
      optimistic, and the accountants are supposed to resist that
      pressure. But if management wants the bean counters to be
      "conservatively" pessimistic, they can do so without much risk of
      criticism later.

      Pay attention to analyst James
      Mcdonald, who is quoted as saying that the proxy appears
      "to be painting a pretty bleak picture in order to
      get this deal approved". Macdonald also says that the
      company is not in danger of shutting down.

      • 2 Replies to yieldseeker
      • anyone remember Donald Trump's
        'bankruptcy'?

        It just happened to coincide with his negotiations
        for a divorce settlement with Marla Maples, did it
        not?

        As 'luck' would have it, shortly after Marla's
        lawsters agreed to a scaled-down deal, and signed on the
        dotted line, clouds parted, the sun came out, birds
        started singing, and the rainbow (complete with
        pot'o'gold) appeared.
        TheDonald was back on the shiny side
        of the street suddenly, purely by
        accident.

        Why should we suspect anything underhanded here?
        Certainly the track record of honesty and straightforward
        representations of financial status speaks for itself,
        no?

        Trustees May Arbitrarily Conceal Killer External Revenues

      • If you don't like this deal then dump the
        stock.

        Holding the stock and voting no means voting yourself a
        big loss. The Wisconsin story cited earlier is going
        to be repeated again and again until the company's
        position is stabilized.

 
CXW
27.29-0.28(-1.02%)Feb 12 4:02 PMEST