Tulvio,
I'm sorry if I confused you. I think WHC is a strong buy here, AS WELL AS CXC!! WHC hasn't missed a quarter yet, and has yet to do some of the positive things that CXC has (REIT, etc.). ALso, WHC is quickly coming to dominate the international market (it IS the leader overseas). FInally, since it's over 50% owned by the Wackenhut Corporation, it can get some cost savings ont hings CXC can't.
Having said all this, CXC has grown tremendously, has a higher margin than WHC, but paid for it this past quarter after their operating margins fell. However, CXC's momentum remains positive, and I rate it a strong buy right here. The only question I have in this whole industry is this:
Can these two companies, when each of them are significantly larger than they are now, continue to expand 5000-plus beds in a quarter (which at that time may not be that big a percentage increase) without getting completely screwed on the cost side??? I believe this question is the only thing that may get in the way of these two companies.
acey |
