Corrections Corp of America (NYSE:CXW)

CAPS Rating: 3 out of 5

The Company is an owner and operator of privatized correctional and detention facilities and prison operator in the United States behind only the federal government and three states.

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Member Avatar jpimp (< 20) Submitted: 1/25/2014 11:04:09 AM : Underperform Start Price: $32.73 CXW Score: +3.35

Only a loser would invest in a prison

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Member Avatar klarcbarr (36.07) Submitted: 12/23/2013 6:48:39 AM : Underperform Start Price: $30.65 CXW Score: -4.67

Legalization of Marijuana will cause some loss of revenue for CXW. A larger threat is the drying up of the funds by State and Federal Governments to support Corrections Corporation. The public awareness of the levels of incarceration in America is growing too, and I predict a turn in sentiment that will cause officials to rethink the length of and even the need for imprisonment for a variety of crimes.

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Member Avatar gfischer13 (81.91) Submitted: 7/12/2013 11:51:36 AM : Outperform Start Price: $31.21 CXW Score: -7.63

TMFRoyal
High yielders are typically not good CAPS picks, but with the S&P fairly valued this might still outperform even in CAPS universe, due to the recent REIT conversion.
My main reason for the pick is to keep it on my radar

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Member Avatar DanCooper76 (< 20) Submitted: 6/19/2013 5:49:49 PM : Outperform Start Price: $30.59 CXW Score: -9.51

US has largest prison population. Think that will change? Not with guaranteed occupancy, for starters.

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Member Avatar Yoshimaroko (< 20) Submitted: 3/31/2013 8:42:48 PM : Outperform Start Price: $29.70 CXW Score: -10.25

If their lobby succeeds in getting at least SOME stiffer sentencing for non-violent crimes, they stand to gain a much greater number of better "employees". Reminds me of the Chinese model of building factories near prisons......

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Member Avatar hobbes429637 (35.62) Submitted: 2/11/2013 7:41:30 AM : Outperform Start Price: $27.77 CXW Score: -6.11

Corrections Corp looks like its going to convert to a REIT. Although, it failed spectacularly when it did the same in the past and saw it's stock fall toward $1, the landscape and regulations are different this time around. I think this move will ultimately be a win for stock holders. The stock was down 6% last Friday (2/8/2013) so I think this is a good time to snap up the stock.

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Member Avatar bossman5000 (21.56) Submitted: 12/25/2012 1:07:27 PM : Outperform Start Price: $26.30 CXW Score: -7.42

This is a bet against the US government. US incarcerates way too many people.

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Member Avatar alexanderantonio (65.18) Submitted: 4/26/2012 2:50:07 PM : Outperform Start Price: $21.46 CXW Score: +21.01

Low P/E + business that's high in demand = green score : )

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Member Avatar taylor4u (65.41) Submitted: 1/4/2011 8:07:45 PM : Outperform Start Price: $18.21 CXW Score: +35.38

CXW has several trends working in their favor. An Increasing population means more prisoners. The last census showed most of the growth was in the south and west where CXW has most of its operations. Also, budget conscious governments will look to private prisons to save money. They also say they pay unemployment taxes which will decrease if the number of claims decrease which should happen eventually. Add that to the already overpopulated prisons and CXW looks like a buy.

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Member Avatar awu3210 (49.16) Submitted: 12/28/2010 10:02:53 AM : Outperform Start Price: $13.90 CXW Score: +57.39

Basically part of a duopoly--the other being GEO, Except CCA's got excess beds in its inventory waiting to capitalize on the problems states are facing, namely prison overcrowding and pension problems.

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Member Avatar srimox (< 20) Submitted: 12/9/2010 7:37:24 PM : Outperform Start Price: $15.51 CXW Score: +44.69

Private prisons are a great way to fix budget defecits (because they cost less to build and operate), create jobs, solve the problem of overfilled public prisons, and according to the Department of Justice improve the quality of prisons. CXW is the best of all the companies, since it is the biggest company, because it provides the best quality care and because they have the highest profit margin. I wrote a whole article about CXW, and why i reccomend it as a buy on my blog. Feel free to read the article by clicking this link: http://teenstockadvisor.wordpress.com/2010/11/30/corrections-corporation-of-america-cxw/

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Member Avatar juki (60.60) Submitted: 8/21/2010 4:48:16 PM : Outperform Start Price: $15.72 CXW Score: +38.87

increased busines

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Member Avatar greenwave3 (< 20) Submitted: 6/3/2010 10:22:31 PM : Underperform Start Price: $15.21 CXW Score: -47.53

Something about this industry rubs me the wrong way. Somehow this is worse than war profiteering since these companies profit from causing pain, misery, and starvation.

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Member Avatar Ry09 (75.77) Submitted: 5/20/2010 10:37:17 PM : Outperform Start Price: $14.50 CXW Score: +54.38

This is not just a company that owns private prisons, but also the owner of TransCor, the largest prisoner transport company in the U.S. Do you realize how many fugitivies get picked up hundreds and thousands of miles from the area of the original crime? How do you think they get back to that place after being apprehended?

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Member Avatar luke77 (25.66) Submitted: 3/27/2010 11:47:34 AM : Outperform Start Price: $14.63 CXW Score: +71.02

This is a macro bet; CXW is the largest public prison operator in the US and we have a huge backlog in new prisons. Given the budget troubles of virtually every state in the union bad news may be in the cards in the short term for this company, but it has already been hit hard and is attractively valued for a long term outperform.

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Member Avatar 77FLH (< 20) Submitted: 3/26/2010 2:14:43 PM : Outperform Start Price: $14.48 CXW Score: +72.49

Heck, a lot of my friends are in prison.

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Member Avatar calmandsuch (< 20) Submitted: 3/24/2010 10:49:45 PM : Outperform Start Price: $14.58 CXW Score: +72.47

These states need the extra beds, they are just trying to hold off spending the money. Prison over population lead to serious problems, including riots.

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Member Avatar maxamillionaire (51.28) Submitted: 3/24/2010 2:21:08 PM : Outperform Start Price: $15.65 CXW Score: +50.69

State governments have no money to fund the construction of new prisons. State governments will continue with more frequency to outsource the construction, supervision and maintenance of facilities to outside companies to avoid having to come up with the large lump sum of funds up front. However they will still pay long and healthy contracts to whoever manages these things and CXW is one of the best

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Member Avatar WiseChoice4u2 (< 20) Submitted: 2/26/2010 12:34:10 AM : Outperform Start Price: $15.82 CXW Score: +42.09

Outsourcing of prisons is a good efficient means to cutting costs. National.

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Member Avatar boiseidfool (93.52) Submitted: 2/19/2010 9:30:01 PM : Underperform Start Price: $15.37 CXW Score: -50.03

Private prisons. I’ve been watching this market, on and off, since 2007. There is a glut of private companies, including GEO Group (GEO), Corrections Corp. of America (CXW), Cornell Co. (CRN), Avalon Correctional Services Inc. (CITY.PK) and Civigenics, operating as a subsidiary of Community Education Centers, Inc. (CEC) in this overpopulated market. A US Census report said the prison population was growing at an annual rate of 4% rather than the 13% predicted by the Pew Charitable Trusts earlier this year. In 2007, Barron's said the lofty valuations of these companies were reasonable. With earnings growing at an annual pace of 20%, Barron's said that Corrections Corp. shares could jump to $30 from their current $27; GEO could rise to $35 from $28.50 as earnings rise more than 25%; and Cornell with an earnings rebound to an estimated $1.27/share next year from $0.82 this year could shoot up 40% from the current $26. Today the share value for these companies is $20.61, $19.17 and $20.19 respectively. The largest of these companies by both market cap and revenues is Corrections Corp. of America, which is based in Nashville, Tennessee. The next largest company is Geo Group Inc. based in Boca Raton, Florida. It has facilities in the United States, Australia, Canada, South Africa, and the U.K. Cornell Companies Inc. is a Houston, Texas company, which in addition to providing detention services, also provides educational services to detainees. Avalon Correctional Services Inc. is a micro-cap stock which trades on the pink sheets, and should be considered very speculative. It operates correctional facilities in Oklahoma, Texas, and Colorado. Civigenics, a unit of New Jersey-based Community Education Centers, Inc. is a competitor, too. Many states, including Idaho, Hawaii and Kentucky, have removed prisoners from the custody of private prisons based on budget cuts and contractor misconduct. California, a leader among entities with the highest number of offenders incarcerated in private facilities, is feeling significant fiscal pain at present. The state currently has about 10,500 prisoners incarcerated in private prisons and is considering moving up to 5,000 more into them. There is considerable angst about California’s relationship with private prisons, CCA in particular, due to a lack of competitive bidding. Read Capitol Weekly’s recent article for more details. There has been much press about the poor quality of offender care and security in these facilities. Due to increased fees for medical and psychiatric care, issues pertaining to overcrowding as a result of more punitive criminal justice policy, and high wages due to overtime, prisons are becoming an increased drain on state budgets. In 2001, the U.S. Bureau of Justice Assistance found that rather than the projected 20 percent savings oft-cited by private prison operators, the average savings from privatization was only about 1 percent. Most of that was achieved through lower labor costs. The study also found private facilities' small savings result from having staffing levels about 15 percent lower than in public facilities. This result in less security and more opportunity by ‘bad actor’ prison guards engaged in misconduct.

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