tag:blogger.com,1999:blog-8597101.post8897536023995228173..comments2024-03-15T05:45:01.402-05:00Comments on Grits for Breakfast: Texas, other states should decline Corrections Corporation of America's offer to buy prisonsGritsforbreakfasthttp://www.blogger.com/profile/10152152869466958902noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8597101.post-8873893402511858652012-03-10T17:40:37.823-06:002012-03-10T17:40:37.823-06:00Agree with Anon 7:57. Why would anybody go for it...Agree with Anon 7:57. Why would anybody go for it? Who wouldn't buy a business if somebody guaranteed them a profit for 20 years? It's hard to figure out. Gotta be something more than is meeting the ol' eyeball here.Donhttps://www.blogger.com/profile/00341616417168200955noreply@blogger.comtag:blogger.com,1999:blog-8597101.post-60658600246015844112012-03-10T09:48:08.711-06:002012-03-10T09:48:08.711-06:00I am sure tricky Ricky will have a substantial amo...I am sure tricky Ricky will have a substantial amount of stock in this company if that happens. Oh and he won't let that sway his decision on the matter either.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8597101.post-7769928088887367592012-03-10T07:57:10.734-06:002012-03-10T07:57:10.734-06:00I'm still pulling my jaw off the floor after i...I'm still pulling my jaw off the floor after imagining that any state official in their right mind would agree to this.<br /><br />If a state owns a prison and plans to keep it 90% full for the next 20 years, why in God's Name would would they sell it to a private prison company and lease it from them? If you own your house, would you sell it to somebody then rent it for 20 years?<br /><br />How stupid would you have to be to think this is a good offer? Oops! I forgot who is governor. Bet Texas takes them up on it. :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8597101.post-319956224652051032012-03-10T07:44:04.581-06:002012-03-10T07:44:04.581-06:00Yeah, but their strategy is to gin up short-term r...Yeah, but their strategy is to gin up short-term revenues with long-term debt when they're already overleveraged. (That's the only way they could purchase these new facilities.) That may make them the flavor of the month on Wall Street, but the fundamental trends driving the industry (mainly incarceration rates declining instead of rising) IMO aren't nearly as "favorable" for CXW long-term as one might have projected five years ago.<br /><br />Also, part of the recent rally had to do with <a href="http://gritsforbreakfast.blogspot.com/2012/01/obama-administration-hands-lucrative.html" rel="nofollow">changes in Obama Administration immigration policies</a> that had nothing to do with the fundamentals discussed here.Gritsforbreakfasthttps://www.blogger.com/profile/10152152869466958902noreply@blogger.comtag:blogger.com,1999:blog-8597101.post-51055333229360691012012-03-09T21:05:33.440-06:002012-03-09T21:05:33.440-06:00Scott, Correction Corporations of America stock (C...Scott, Correction Corporations of America stock (CXW) has risen 25% since January 1st. Someone is definitely listening to them.R Shackelfordnoreply@blogger.com