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Non-Tech : Corrections Corp. (CCA)

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To: Tulvio Durand who wrote (44)1/8/1998 4:54:00 PM
From: Acey  Read Replies (1) of 91
 
I'm not sure why there is this weakness. I'm not worrying, though, since the Dow has been slip sliding along the past three days, for the most part.

In terms of CXC, Genesis Group (a research firm) upgraded CXC to BUY from HOLD on Jan. 6th and raised 1998 EPS estimates from $0.98 to $1.05. THey believe the stock is undervalued based on its P/E to EPS growth rate. (I never put much faith in that, or any other, valuation measure)

Still, this suggests that CXC has its costs under control for this quarter, and apparently will for the rest of this year.

Overall, I view this as a nice buying opportunity, although I still rate WHC a HOLD here, as its momentum isn't as strong as I'd like it.

Acey
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