Hello Marc..thank you for your
courtesy,..(smiles). It is a shame that service companies are out of
favor vs the Nasdaq 100 index(QQQQ), the economy has
had a very long rise since the debacle of 1987, maybe
Greenspan did learn his lesson back then who knows we are
fixing to find out soon. This being election year, the
politicos may use rethoric to blast our sector, but
fortunately all the bad news is out of this stock, and
possible large federal contracts loom in the horizon.
The purchase of up to 500,000 shares plus the
previous authority to purchase 122,000 shares in August
1998, with currently 21,508,992 shares outstanding, of
which 12 million, or 55.8 percent, are owned by (WAK).
Total Float will then be 8,886,992 shares at $9.325,
then George could buy the whole company for roughly
$83 million, a good deal......(smiles).
The use of
1/4 cash on hand should prop up the price of the
shares at this levels, in my way of thinking they should
use 1/2 of the cash on hand and add another 500,000
As interest rates increase so does the desire by
the Units of government to have the privates do the
planning, construction, and management of the facilies and
along with the rise in interest rates and the rise in
unemployment, so does crime increases.
You are correct in your thoughts that this
industry is undervalued. 25% growth and a 10 P.E. I know
of no other like it. The press hates privatization
of governmental businesses so they jump all over any
prisoner complaints that are made public. This keeps the
big mutual funds out of the picture. As I see the
future the governments need to see cost savings . Once
they are convinced then the business will be
legitimized. This is still a new field and will take awhile to
catch on. All I know is that with 25 year contracts
already signed this business is not going away.