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Corrections Corporation of America Message Board

  • tom10085232 tom10085232 Feb 18, 2005 6:59 PM Flag



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    • tom, the General is unable to provide a definitive answer to your question, "Why?," since he hasn't had a chance to delve deeper into the reasons, other than the obvious ones like the overall market has been turning into excrement and is weaker than it was a month and a half ago and that that same weakening trend applies to CXW's Commercial Services-Security/Safety industry group's relative price strength among IBD's 197 groupings.

      At the risk of sounding like an "I told you so," the General did refer to his "concerns" about CXW's "technical" weakness in his initial posting about CXW's 16� gap-up on 2/01/05 (sorry, the General neglected to note the message's number).

      And the General even gave the 'technical' reason for said 'concern', namely, CXW's having fallen back below its c-w-h's "pivot point" ("pp") [which was $40.10], after having broken out. Not a good portender of positive things to come.

      2/01/05 was more than 2 weeks before last Friday's descent into the $37+ realm. The General even reiterated said 'concern', in responding to l_spl_l's subsequently asking him his opinion about CXW's near-term future price movement.

      What the General can do (in case you weren't watching these things), is to give you (and the readers of this board) some "snapshots" of CXW's deteriorating technical 'health' over the past 6+ weeks by presenting data applicable to certain selected "snapshot" dates.
      And this 'deterioration' has continued DESPITE CXW's improved fundamental ranking, following release (on 2/09/05) of its 4Q04 & FY04's earnings report.

      Note: The parenthetically enclosed number at the right end of each "snapshot's" data is the numerical ranking of the CS-S/S industry group's GRPS (out of IBD's 197 industry groupings).


      CXW establishes a new 52-week high (43.06).

      90�49�81�A+�C�A+ (11)


      CXW's i-d l falls below its breakout's "pp". The CS-S/S industry group's Relative Price Strength (GRPS) has deteriorated from an "A+" to an "A," (numerically, from 11th ranked to 20th) while, CXW's Accumulation/Distribution (A/D) rating remains the strongest ("A+").

      86�49�74�A�C�A+ (20)


      CXW CLOSES below its "pp" and its A/D rating has already begun its deterioration (from an "A+" to an "A"). GRPS continues to slide (from 20th ranked to 26th).

      80�49�70�A�C�A (26)


      The session immediately preceding CXW's 2/09/05's earnings release. Note CXW's EPS percentile ranking has been a "49."

      80�49�69�A�C�A (23)


      Earnings have been reported, but IBD's EPS percentile ranking is a (one-day) abberant "25," detrimentally affecting its overall "Composite" ranking.

      69�25�68�A�C�A (25)


      The proximate session after earnings-release day, and sanity has been restored to CXW's EPS & Composite rankings. Note that while EPS has improved from a "pre-reporting" 49th percentile to a "post-reporting" 73rd, "A/D" & "GRPS" have both continued to deteriorate further.



      Most recent session's numbers. Continued deterioration in both A/D's and GRPS's rating/ranking.


      Others hear are welcome to answer tom's question, "Why?".

32.22+0.18(+0.56%)Jul 22 4:02 PMEDT