Hello Fellow WHCers! Read about this stock in the Kiplinger News Letter and was intrigued. Did som research and bought me a few shares last week. Small Caps are really taking a beating right now so I'm not paying much attention to the market. I was around in 1987 and this market will pass. Those of us who keep our cools should turn out pretty good. As you might guess, I am not a market timer. It doesn't work for me. I find companies that have low P/E, 30%-40% growth that are industry leaders. It also is nice if they are buying their own shares back, like WHC has recently done to the tune of 250,000 shares. If I like the company, and it doesn't go against my values I buy.
Thats why I bought WHC. Management is big time owners and its not over institutionalized. This company is going places.
the old adage is; two things you can count on..death and taxes. I think we could add a third...criminality. With prevailing sentiments such as "three strikes and you're out" and "save the taxpayer's pocketbooks , whc looks like a long term sure bet.
Long term to me means 2 - 3 years. Remember it doesn't matter what the price of this stock is, until you want to sell. At 40% annual growth, heavy insider ownership and a decreasing P.E. the price has to go up. Remember their is close to 2 trillion dollars sitting on the side-lines right now. That money may decide to forgo investing in Coca Cola or Microsoft with their enormuos PE and by small caps. Thats where the growth and growing profits are!
The trend in this country is towards smaller government and prisons will continue to go private. This is a very new concept as was the PC, Cell Phone ect. This is a rough number but in the back of my hard drive, my brain, I remember reading yhat it cost $40,000. per prisoner per year vs. $20,000. in a privately run prison.