EPS numbers only moved up to consensus. Not a big deal. And they will only hit EPS by stuffing the channel. Watch those DSO's spike. JMHO.
...48% operating income growth. EPS growth will
be less. Some of the operating income growth comes
from acquisitions (GET/EFTC) which were paid for with
shares/cash. Curious what analysts models will turn out for
EPS growth, and if it will be in-line with current
estimates or an increase.
So positives from call are
outlook seems pretty robust.
Negatives are revenue
this Q a little light and big inventory
What is unclear is EPS guidance. Will be interesting
to see what stock does tomorrow.
Power Industry Deregulation apparently driving
large upsurge in trading of wholesale electricity.
Baycorp's (TICKER: MWH) HoustonStreet operation is the
first mover in the internet trading of
According to the article, wholesale trading grew 500% from
1986-1998 reaching $300bb.
I would guess that is
de-regulation gets nearer and nearer, this growth rate will
accelerate. If in theory these guys can generate a few
hundered million in revenue with HoustonStreet (and
article also indicates Sapient built the site, so it is
very professional), based on current internet market
cap multiples, maybe they can create a few billion
additional market cap. That would be over 40x return from
here, as current biz with 8mm shares outstanding
roughly has $50mm in market cap. Seems like the same
position the internet stockbrockers were in a few years
ago, and they created a huge/rapidly growing industry.
Who knows though, a lot to go to get from here to
there, but seems like a big and growing marketspace and
a good opportunity for an early entrant.
why would they build a 1500 bed facility and not
have enough sewer capacity? that seems like a big
waste of money? also, the facility has been open 3
years, if sewer capacity was a problem, wouldn't it have
eventually gotten fixed?
also, where did you get this
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
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.
2 Prisoners escaped from CCA/PZN Mason County
So far seems to be not too well known.
nobody had ever heard of anything of that nature
before and is hard to believe because then bed-cost ex
that fee would be too low. don't you get the point of
all the posts on this thread and shareholders bailing
out is it is impossible to believe anything.
Take ~$120mm from PZN, send it down the operating
company, have it send $100mm back to PZN and call it rent,
and then PZN expenses nothing against that so they
book a $100mm increase in FFO. I seriously question
the merits of this treatment.
For those not
familiar, Boston Chicken was one of the biggest disasters
of all time, I think it is now Bankrupt. Boston
Chicken was a restaurant franchisor that had a bunch of
franchisees that were paying it big fanchise fees. Boston
Chicken was booking a lot of earnings from the franchise
fees, but the franchisees were actually losing money
after paying Boston Chicken the fees. On top of that,
was actually loaning money to the
franchisees to send
the franchise fee back up to the
the franchisees were going broke,
and ultimately couldn't pay
back the loan. So even
though Boston Chicken
corporate was reporting good
EPS (becasue you can do a
relative to how you treat cash expenses), the system as a
whole was failing. Eventually, the Ponzi scheme
collapsed on itself.
Not sure if what PZN is doing
is much different. Granted, PZN is a great company
with some very positive charasteristics. However,
numbers are numbers and aggressive acounting can only
mask so much. Think is the part of the reason the
auditors forced so much disclosure in the Q, so we would
know about all the monies moving back and forth. Will
be interesting to see how this plays out. JMHO.
What if it does get taken over. No way WCOM pays
more than $40-$42 per/share, as stock has run up
solely on takeover speculation and already incorporates
a huge takeover premium. Then it is a stock deal,
and WCOM shareholders hate the deal due to 25%
dilution, so WCOM trades way down on the news, lowering the
implied value on NXTL, i.e. NXTL ends up going down on
the takeover news as WCOM shares worth less money. So
if WCOM announces deal at $42, WCOm probably gets
whacked 10%-20% stock price wise, and NXTL trades down
commensurately. Notice every time takeover noise gtets hot and
heavy, WCOM trades down $3/$4 just on the rumors. JMHO.