Just my opinion. It's a good company in a gradually but steadily growing industry. For some reason, they seem to fly below everyone's radar.
Good post, OG. The author could substitute "general public" for 'CCA stockholders' and "government-run institutions" for 'private prisons' and make the same anti-incarceration observations.
Why do folks immediately think "insider trading" when a stock like this declines? If you don't trust the management, why do you hold their stock? Check their proxy and think about it. How many insiders hold as many as 180,000 shares?? I would bet an institution dumped it. Of course the question still remains: why??
GEO filed an 8-K today (Monday) saying they will restate their 2003 and 2002 earnings. The 8-K says per share earnings will be 2 cents less than previously stated for 2003 and one cent less for 2002. The reason had something to do with accounting methods for employee vacation time.
Not a big deal, in my humble opinion. But it could very well have something to do with the price drop of last Friday.
There was much greater than normal volume for the stock last Friday -- the trading day prior to the announcement. Hmmmmmm.
When a corporation pays excessive salaries to its executives -- even this one whose clients are all government agencies -- it's not the taxpayers who are being ripped off. It's we the shareholders who are being ripped off. The Board of Directors is supposed to represent us and make sure it is not happening.
Here is more good news from Calif.
It looks like GEO's Adelanto facility will be taking on 200 more prisoners.
The local news clip is at: http://www.vvdailypress.com/2004/110045321788273.html
I have been watching these guys for a few years. I agree. Their time is coming. As a matter of fact, I think the time to buy is now. (Just my 'umble opinion.)
What do you have against a guy who is a legend in his industry (security industry) and now, hopefully, is enjoying a well-deserved retirement?
My memory's a little fuzzy, GenJack -- but wasn't that Wash DC and not the BOP that sent the mislabeled bad guys? Or, maybe they are the same. I furget.
I agree. I have the WHC (now GEO) stock and have enjoyed its steady rise over the past few years. I believe it will continue for quite a while.
When will Yahoo figure out that they have a new stock symbol??
Pretty good announcement today:
? The GEO Group, Inc. Announces 543-Bed Expansion To 1,318-Bed South Bay Correctional Facility In Florida And Contract Award By The Texas Department Of Criminal Justice
They buried information on losing a contract for 165 beds in TX, but these weren't being filled by the most desirable type of clients anyway and will probably be marketed to another agency.
I believe you are correct, Javelin. There is very little Wall Street coverage of this stock. It is just below the radar, and a sleeping giant.
Wackenhut is no longer a major shareholder in WHC, and has never been a major shareholder of CPV, to my knowledge.
Last year, Wackenhut sold out to a Danish security firm (Group 4 Falck) which has no interest in the prison business. Group 4 recently sold out its fifty-plus percent ownership of WHC.
My opinion on your two questions: (1.) Why separate the two? Because CPV can expand to facilities other than WHC facilities. And there are tax advantages for being a REIT. (2.) Insider Activity: anybody's guess.