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Corrections Corporation of America Message Board

drussian 7 posts  |  Last Activity: Aug 7, 2013 5:13 PM Member since: Jan 7, 1999
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  • Reply to

    Insider Transaction

    by drussian Jul 29, 2013 9:34 AM
    drussian drussian Aug 7, 2013 5:13 PM Flag

    I agree with this. Unfortunately this thing is going down. Revenue and operating income, both down. Looks like I'l be able to finally buy this thing under $30 tomorrow. I usually buy/hold for at least one year, so I'll be ok in the long run.

  • Reply to

    Insider Transaction

    by drussian Jul 29, 2013 9:34 AM
    drussian drussian Aug 6, 2013 4:59 PM Flag

    I think you bring an interesting point about this industry and certainly examples like Enron, Lehman, etc. , most definitely caused some serious damage to millions of investors, really to the point where retail investors stopped trusting Wall Street, but I do believe that SEC is doing its best in bringng insider trading under control. However, this particular example where CFO of CXW dumped most of his shares straight into earnings is not very common. I'm very curious what earnings will bring and I'd not hold a long position into tomorrow night. If numbers or guidance is bad....watch out. With CFO selling so much of his total shares, should we expect good numbers??? I don't know....

  • Reply to

    Insider Transaction

    by drussian Jul 29, 2013 9:34 AM
    drussian drussian Aug 6, 2013 3:34 PM Flag

    Thank you for reading my messages and responding. I agree with some of your points, so lets continue our discussion. It is very common for insiders to sell shares, true. As I stated in my earlier post, people need cars, houses, airplanes, etc. . So, selling 1 or 2 or 3 percent of your total holdings into earnings is not a big deal. However dumping 225K shares (or maybe more, I lost count) and leaving only 100K, seems like a huge red flag. I'd actually issue a friendly challenge to you (or anyone reading this) - please find another example where CFO of the company has sold close to 70% of his total shares right into earnings. I was not able to find another example of this, so maybe you can. To take it a step further, I do not believe this type of dumping is allowed by companies, for that reason - not to #$%$ other investors. If CFO is dumping most of his shares, why should a regular Joe Shmoe invest in the company? So, my guess is CCA is lacking internal controls, which is not a good sign. I've sent an email to Investor Relations well over a week ago, looking for information on insider selling - still no response and another red flag. I just can't get over nor understand this much selling right into earnings. Why not wait a week after? Anyway, glad you responded and hope to continue this discussion. I guess Mr Market agrees with me right now, as CXW is breaking down, but that's another story (or maybe it is related to our discussion)

  • drussian by drussian Aug 2, 2013 7:20 PM Flag

    Who here knows the rules on insider trading? In particular CFO of CXW has sold about 75% of his total shares all the way into earnings. Last sale was this week and the company is reporting next week. Is this legal? It does not appear to be so, but I can't find any info on SEC site. Please share your thoughts.

  • Reply to

    Insider Transaction

    by drussian Jul 29, 2013 9:34 AM
    drussian drussian Aug 2, 2013 2:59 PM Flag

    Interesting my post has been deleted by Yahoo, so here it is again. Here is what I've done after my last post and seeing CFO of CCA dump another 75K shares (total of 225K shares sold in July) -
    1) Contacted CCA client relations to get an explanation for internal procedures tracking large insider sales. So far...no response. Not very good sign
    2) Submitted inquiry into SEC to understand if there are any rules in regards to these types of transactions. Will let you know the outcome
    If I was an investor I'd be very concerned about CFO selling most of his shares into earnings. Thoughts?

  • drussian by drussian Aug 2, 2013 2:36 PM Flag

    Nice job today on LNKD. Quite a few insiders dumped some shares and lost a ton of money. I guess selling 1% or less does not hurt anyone. I've got a question for this board. If you see CFO of a public complany selling 75% of his total shares into earings, is that even legal? I know it is a huge red flag, but technically is that legal by SEC rules? I can't find much info on this. Take a look - ticker - CXW, earnings next week.

  • Folks,
    This board is dead so I’m not expecting a ton of intelligent responses, but here it is nonetheless. I usually do not pay close attention to insider selling. I understand, people sell stock to buy furniture, homes, cars, airplanes, etc.. I understand when insiders sell one, two or three percent of their total holdings any time before or after earnings. I’ve been trading for over 15 years, so when I see CFO dump over ½ of his total shares all the way into earnings, that concerns me. It is probably tough to argue that the person that knows the most about the health of the company is CFO (controller might know just as much), correct? So, CFO of CCA sold 150,000 shares of CXW, starting on July 2 and ending July 17, a few weeks before earnings. This represents about 55% of his total holdings (data gathered from Yahoo, so might not be accurate). I might be overreacting, but is anybody else concerned here, that Todd Mullinger might know something, that we do not know? Lets try to analyze the possible outcomes of earnings, about one week from today –
    1) CCA report great earnings. CXW stock price goes higher – Question – Why did CFO dump a ton of his shares costing himself millions of dollars two weeks before earnings? Does this show solid decision making by a critical member of a public company? I don’t know…
    2) CCA misses their number. CXW stock tanks – No question stock holders will look back and start asking questions why CFO dumped shares going into earnings. SEC most likely will be interested in his transactions as well.
    What am I missing? Is there another scenario? This just doesn’t make a ton of sense. Either way, CFO does not look good based on these scenarios, so why sell? Maybe he is getting divorced, needs money, or what? Why not wait until right after earnings and sell then? I just can’t get my arms around this. Thoughts?

    Sentiment: Hold

CXW
32.98-0.20(-0.60%)Jul 25 4:02 PMEDT

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