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The GEO Group, Inc. Message Board

  • manboking manboking Dec 30, 1997 1:25 PM Flag

    Historical Pespective necessary

    Purchased WHC on IPO on 8/94 for 6.00, sold it two years later at
    45.00, purchased it again in April and May (double bottom) of 97'
    for 16.00, both times and sold it at 36.00 on Oct.97'; Bougth it back at 22.00 last week and looking to double my money soon

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    • Obama Sees a Middle Class Tax of $I.7 Trillion Increase as a Victory read this and vote for Obama if you like it.

      –Obamacare law contains 20 new or higher taxes on American families and small businesses–

      The Largest Tax Hike in US History has just been upheld by the Supreme Court of the United States and President Obama sees this assault on the middle class as a victory.

      The already unpopular 2010 health care reform law has been converted by the court into a $1.76 trillion tax increase funded by escalating taxes to be paid the vast majority of taxpayers. The high court’s ruling leaves in place 20 tax increases in the health-care law, of those, 12 tax hikes would affect families earning less than $250,000 per year, including a “Cadillac tax” on high-cost insurance plans, a tax on insurance providers, and an excise tax on medical device manufacturers. By formally converting ‘Obamacare’ into ‘Obamatax,’ the court allows Obama to raise taxes on the middle-class.

      The decision is a distressing blow to taxpayers and represents the single largest tax increase on young people in the nation’s history. When it takes full effect, the Internal Revenue Service will have immense new power and authority to persecute and prosecute a whole new group of taxpayers.

      If the law takes full effect, it will devastate small businesses and destroy any chance for a sustainable economic recovery. It will add trillions of dollars to the national debt and push the country toward bankruptcy even faster than current projections. Any individual who believes that
      this decision must be overturned must do everything possible to undo the damage that has been done, especially at the ballot box on November 6.

    • Ingenioso, hard to go wrong with a 16% yield
      at PZN...right...?. eventually the correctional
      stocks will do better than this past six month, but
      again would not take much to outperform that sort of
      low record...LOL
      With $1.27 earnings in 2000
      places this growth stock at less than half its growth
      rate, not a bad deal in my book, and the downside is
      negligeable at this point.

    • Agreed on all counts. I follow PZN, WHC, CSCQ,
      and CRN, and have done great TRADING the last 3 and
      poorly on PZN. Currently have 94 shares 0f WHC in my 9
      month old daughter's Education IRA as an INVESTMEST
      (commissions preclude trading her small acount.) These 4
      stocks seem incredibly cheap at todays prices. The top
      news item "The Wall Street Transcript Publishes
      Private Corrections Facilities Report" speaks favorably
      of all but PZN. This may boost WHC short-term. My
      thanks go out to analyst Michael Hughes of J.C. Bradford
      who said to avoid PZN. Bought some today at 10.5625
      (off 3/8) for my IRA. I trade for a living. Analysts
      simply provide short-term noise for me to exploit.

    • The Wall Street Transcript Publishes
      Correction Facilities Report.

      NEW YORK, Sept. 29
      /PRNewswire/ -- Four leading analysts examine the Private
      Correction Facilities Industry in the latest issue of The
      Wall Street Transcript (212-952-7433). this report

      An in-depth roundtable forum on Private Correctional
      Facilities with four leading analysts: Michael Hughes of
      J.C. Bradford & Company, James Macdonald of First
      Analysis Corporation, Brian Ruttenbur of SunTrust
      Equitable Securities and F. Thomas O'Halloran of Warburg

      One of the biggest drivers for private
      correctional facilities is the massive increase in the prison
      population, Macdonald states, ``The big advantage that the
      industry provided was being able to build those beds in 12
      to 18 months, instead of two to four years. In
      addition to cost savings, the increase in population is
      the primary driver. A lot of states are under court
      order to reduce overcrowding.''

      Presently, only
      about 6% or 7% of all prison beds are managed by
      private companies, and the growth rate forecast for this
      industry is 20-25%, O'Halloran asserts, ``So even five
      years out, the level of penetration would be between
      10-15%. But over time, I think the profit motive, and the
      ability of privately run companies with a profit motive,
      and not with a government bureaucracy undermining the
      strategy is the better model, and will be the one that
      will prevail ultimately. The profit motive should
      drive ongoing efficiency improvements, as well as
      better rehabilitative programs; not so for the

      There is more than cost improvements involved,
      Macdonald declares, ``I also believe that there's a very
      significant quality improvement. It hasn't been proven yet,
      but I think over the next couple of years you'll
      start to see data about the fact that the private
      companies are trying harder, and doing a better job,
      especially in getting these inmates ready to be

      The panel goes on to offer recommendations about
      which sector stocks are most likely to reward

      Because the industry has grown its base, the percentage
      growth rate is less, Macdonald states, ``On visible
      earnings, Wackenhut (NYSE: WHC - news) and Cornell (NYSE:
      CRN - news) are selling at just about 10 times my
      visible earnings estimate, which assumes that all awarded
      prisons are up and operating. For an industry, even if it
      is 'only' growing at 20-30% a year now, I think that
      is very, very low. I think it will be corrected as
      soon as some of the negative publicity has time to go

      The sector needs a catalyst for demand, O'Halloran
      forecasts, ``What it is going to take is for the companies
      to deliver on the numbers. It is probably over the
      1999/2000 time frame that the market will finally reward
      the companies with better multiples. Correctional
      Properties Trust (NYSE: CPV - news) is carrying a very
      attractive yield with very good growth prospects. I think it
      is a very cheap, beaten up sector that with a proper
      time horizon of one to two years will yield good

      Ruttenbur has a buy rating on Res-Care (Nasdaq: RES -
      news), ``I see Res-Care as one of the best-managed
      companies in this area. Approximately 20% of the company's
      revenues are generated in the at-risk youth industry, and
      only part of that at-risk youth is juvenile
      corrections. The company is the largest provider of services
      to mentally retarded and developmentally disabled

      Hughes cautions investors to avoid Prison Realty (NYSE:
      PZN - news), ``There are still short-term occupancy
      issues at PZN. And the reason the dividend yield is over
      16% is the real facility-level cash flow was about
      half the dividend paid out in the last quarter. I
      don't think borrowing to pay a dividend is the best
      policy in the world.''

      For micro-cap investors
      looking for value, Hughes states, ``Correctional Services
      Corp. (Nasdaq: CSCQ - news) looks compelling

    • SARASOTA, Fla., Sept 2 Correctional Services
      Corp. (Nasdaq:CSCQ)

      Vice President of Finance
      Ira Colter said "While private companies operate less
      than 4 percent of the country's jails and prisons,
      Bureau of Justice Statistics data released this March
      said the number of people incarcerated in America rose
      almost 5 percent last year to 1.8

      Correctional Services' Colter also said "private-run prisons
      now exist in almost every state in the country except
      for those in the union-dominated Northeast.".

    • on vacation. I didn't really expect it to
      Returned to find out I owned WHC, when I never
      it. Looking forward to seeing it back into
      middle 20s. Don't think it will take long <VBG>

    • OHhh...forgot to mention that today is a prime
      example the market tanks 200+ points and WHC goes
      Do you know why...?
      Because is currently viewed
      as a defensive stock...!
      Crime increases in
      direct relation to the health of the economy, take that
      and place it under your pillow, and sleep on

    • Four Main Reasons, as follows:
      (1) The slowing
      down in earnings growth from 40%+ in the last five
      years to 30%+,
      (2)the bad publicity by PZN,
      the Travis County (Austin) contract in 2000, will
      reduce earnings by 0.03 cents to 1.27 next year, and

      (4) the riots in New Mexico.
      This factors will
      eventually come to pass, and WHC will resume its upward
      trend. Markets have to have walls of worries to climb,
      otherwise it would be a boring market place....LOL

    • punnished so hard lately?????

    • Thanks McPrision,....for making it crystal clear
      the true pedigree of CRN, no ofense meant to any one
      interested in said stock. It is confusing to investors at
      time to read statistics on paper, sure glad paper
      can't talk back...LOL. This industry has really only
      two primary stocks, as I said before.

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