NEW YORK, Oct 20 (Reuters) - Shares of Corrections Corp jumped more than 6 percent on Tuesday following news that Pershing Square Capital Management, headed by activist value investor William Ackman, had made an investment in the prison manager. Ackman said at an investor conference the stock was "cheap" and was worth between $40 and $54 per share. For details, see The stock jumped as high as $26.17 -- an intraday session high -- following Ackman's comments.
Talisman Energy (TLM - Cramer's Take - Stockpickr), an upstream oil and gas company, has been upgraded to buy. For the fourth quarter, net income grew 9.7% year over year to $656 million, while earnings per share declined slightly to 30 cents from 32 cents. Revenue rose 13% in the same period to $2.05 billion.
The company's gross profit margin is high at 75%, and its net profit margin of 32% significantly exceeds the industry average. The debt-to-equity ratio of 0.62 is low overall, but it is high compared with the industry average, and the quick ratio of 0.73 is weak.
The stock's rise in price over the past year has outperformed the S&P 500. The rise in price has netted shares a price-to-earnings ratio of 21.49, which is higher than the industry average. We feel, however, that other strengths in the company justify the premium. Talisman Energy had been rated hold since Feb. 7.
For the first time in history, more than one in every 100 American adults is in jail or prison, according to a new report tracking the surge in inmate population and urging states to rein in corrections costs with alternative sentencing programs.
Corrections Corporation of America (NYSE: CXW - News) will replace Cameron International in the S&P MidCap 400 after the close of trading on Monday, January 28.
Corrections Corporation of America owns and operates privatized correctional and detention facilities in the United States. Headquartered in Nashville, TN, the company will be added to the S&P MidCap 400 GICS Diversified Commercial & Professional Services Sub-Industry index.
(Tue 8/7th 6:23am)
Corrections Corp Q2 net income rises
Corrects headline and second footnote to clarify company
did not slash its 2007 estimate. The earlier estimate for 2007 was given before the company effected a 2-for-1 stock split)
(Adds Q3 outlook, 2007 outlook)
CALGARY, Alberta, May 9 (Reuters) - Talisman Energy Inc. (TLM.TO: Quote, Profile , Research) said on Wednesday it is considering offering investors a portion of its Canadian pipeline assets, though details are still be worked out.
Speaking to reporters following the company's annual meeting, Jim Buckee, Talisman's chief executive, said the company would not surrender control of its midstream business in any potential deal. He did not say how much cash Talisman hoped to raise.
TORONTO, May 9 (Reuters) -
Talisman Energy Inc. (TLM.TO: Quote, Profile , Research) will attract attention after posting a jump in quarterly profit on a big gain from asset sales. Talisman's earnings from continuing operations were in line with analysts' expectation.
PARIS IN THE SLAMMER?
The headline: Paris Hilton May Go To Jail After Violating Terms Of Her Probation
The word: Dylan asks if the trade is prisons? Eric Bolling says if it is, he likes Corrections Corp of America (CXW).