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Corrections Corporation of America Message Board

  • indian_cycle_buyer indian_cycle_buyer Mar 26, 2009 12:35 AM Flag

    Falling off a cliff?

    Despite CCA's historic proclivity to go spiraling into the toilet, it seems industry tracking, especially that done by First Analysis, is the last to get a clue. They seem way too close to management to be objective.

    CCA's buy back attempt to rescue stock price, no doubt because corporate executives are such heavy shareholders, is bound to have reprecussions. It worked for a while but it won't hide the PE truth and has been putting more debt on the balance sheets.

    The state of Maine just announced yesterday that its plan to export convicts to CCA has been shelved.

    Idaho simultaneouly announced it would bring back the last of its 380 prisoners from CCA's Sayre, Oklahoma, facility by August.

    They had come part way home after GEO Group lost its contract to hold them in Littlefield, Texas and cancelled its contract to operate that escape-and-debt-plagued prison.

    CCA is pushing to build prisons nine and 26 miles from the California border, paying almost $7 million for 120 acres in Nye county that might bring about $200,000 on the open market today. It was counting on getting California prisoners to fill them, but a three-judge federal panel just told that state it needs to reduce its population by 40,000, not just export prisoners elsewhere. Those who have already been transported, such as to CCA's new Las Palmas facility in Arizona, are in a state of open rebellion with a low-paid, green staff baffled about how to cope with them. Nevada may reduce its prison population by nearly 5,000 to cope with the current economic crisis. Alaska has begun building to bring back its 900 prisoners from CCA in Eloy, Arizona, and Hawai'i is starting to get the willies once more.

    Arizona has an MTC prison being constructed which could return that state's exports from Cornell and CCA in Oklahoma.

    Major anticipated changes in immigrant detention policy, in addition to undocumented workers going back home due to the lack of low skilled jobs in the U.S., will take a huge bite out of corporate profits.

    CCA's chickens are coming home to roost, just as they did when they overextended in 2001 and their stock dropped under $.50/share.

    Don't wait for indolent industry trackers to acknowledge the obvious: The time to short is now.

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