a web page that shows facility utilization % by
If you go to this page, and scroll down to the
privately managed prisons section, they show data on the
Eloy Detention Center. As I understand it, this is a
CCA/PZN facility for federal inmates. The data they show
on the page is as of May 21,1999. It shows only 1195
of 1500 beds occupied, 79% utilization.
does not seem to jibe with the press release that was
put out by the comapny which indicated all beds in
the federal system are at 100% capacity.
anyone understand this? Is this definitely a PZN
facility? Are all the beds supposed to be for Federal
Inmates?? I am confused.
Most facilities estimate costs based on a 95%
occupancy rate. There is usually a lot of inmate movement
(to hospitals, other facilities, trial locations,)
and facilities are rarely, if ever, full.
beds are left unused in case of emergencies, or
sidebar contracts held with other law enforcement
Many facilities house different types of prisoners.
Some arrange to accept county or out-of-county
detainees, state prisoners, Border Patrol/INS detainees,
etc. So, a facility may be at capacity, but have a
variety of inmates, not all of one designation.
It's to PZN credit that they have not exceeded
capacity. All the
federal prisons are over capacity and
law suits are filed against
them...Elroy is split
in two separate sections and this could cause some
mis-calculation...The fed. has to pay the private co.
like PZN per
day for prisoners transferred to thier
Keep the bad news comming so we can find the real
I hope the share price is slow to rise so I can
DRIP at the low price.. The expansion program is
ongoing and the money flow will
eventually brings the price up. In the interim...
what is a very nice dividend...
really trying to get to bottom of this, if can
understand a few key issues, would be helpful. stock seems
cheap, prison industry has had great fundamentals, and
pzn dominates the marketspace. however, also some
inconsistencies i need to work through to get comfortable
(previous post). chatter on this page seems to have died
Eloy has enough "room" to accommodate as many as
1500 inmates, its "rated occupancy."
due to inadequate sewer capacity serving the
facility, the BOP has "certified" its capacity for a
maximum of 1204 inmates. This lesser effective capacity
has prevailed for several years and Eloy has not
exceeded its BOP limited "certified capacity" nor is it
presently contemplated that the sewer capacity restriction
will be relieved to enable utilization of Eloy's rated
capacity. Staffing @ Eloy has been set at the 1204 bed
maximum level for the past 3 years.
If 1195 beds
are occupied, that would represent 99.25% of Eloy's
And doesn't the new legislation, if passed, allow
for payouts of 90% instead of 95%? I'd love for PZN
to have the opportunity to retain more earnings.
While more retention by definition reduces dividends it
also reduces borrowing and stock issuance.
understand he is mad as hell..for those that do
not know ..tom west point founder of company..not
doc..tom brought in doc in the begining...still owns
almost 3,000,000 shares andnot only does not work at
company but has no son at company that got 5
million...toms dropped almost 100 million wonder why he is
hot....things will change.....also board member monroe carrol
founder and pres of very sucessful public company central
parking symbol csc.largest in the world..he is
embarrassed does not run his company ..learned the real
doc..new member ...things will change...finally some good
I actually was looking at the stock today as if
it would hit my target of 11 1/2. When I looked at
the buy/sell side there were 20 bids and 500 asks.
That told me there might be room to go. I have to say
I am surprised. Unless the institutions are scared
at the recent events and unknowns from management, I
can't understand why so many shares were up for sale.
Maybe they are dumping before the end of their quarter
so they don't have to show it on the reports. You
would think they would wait for the dividend.
the mean time, thanks for the very informative
discussions. You have two very informative writers in Flipper
and Quadrophile not to leave out any others.
The answer is yes & no.
Sometimes they win
prisons/contracts through a competitive RFP (request for proposal)
process, which come with a specified number of prisoners.
SInce this is a competitive process, margins often get
Often, PZN/CCA will build a facility
speculatively, and then hope to find prisoners (out of state,
in-state, feds, etc.) to fill them. Historically, this
strategy worked well as there was huge undercapacity of
prison beds and they could get good prices for their
available bed space. Now, this strategy to me seems to have
a much higher risk profile than it did
A fair portion of the new CCA/PZN new facility
announcments are "speculative" builds. Read the press
releases, there is often no concrete info. out there about
who will fill them. A lot of capacity coming on-line
in Georgia for example, and questions about where
prisoners will come from to fill beds.
answer to your question is both.
The press release regarding the lawsuit indicates
that the law firm is looking for a "lead plaintiff."
Vultures, sitting on a tree!
Anyone who joins in on
a suit such as this is lucky to get 10 cents on the
On the other hand, Doc has invited it with his
selective silence. This is the most ridiculous PR blunder I
have seen since I've been in the market.
the future of the company is riding on the ability to
sell more stock, it is absolutely imperitive that Doc
go on CNBC and clear the air by answering tough
questions. If he thinks he can just continue as before, he
is hiding his head in the sand.
not normally respond to posts on boards such as this
one. that is understandable. However, it would appear
obvious that when your stock drops to 1/2 in a week, in
response to a PR screw-up, you should try to improve the
Doc, rather than just buying cheap
shares, couldn't you try to do some damage
I'm with ya. Went in large today. Hope we,ve
found the bottom and start to re-trace. By the way,
could Tn & Tx also be R2D2 in disguise? We haven't
heard from him in awhile. Maya,it may be the time to
double up, only my opinion, but I've put my money where
my opinion is. Good luck! Let's see if we can get a
bounce in here. Remember, buy on fear, sell on greed!