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Non-Tech : Corrections Corp. (CCA) -- Ignore unavailable to you. Want to Upgrade?

To: Profi who wrote (82)	4/26/1998 8:58:00 PM
From: Tulvio Durand	Read Replies (1) \| Respond to of 91

CCA's last 5 yr EPS growth has been 76% per Zachs. 98/97 EPS was supposed to be 56.3%, also according to Zachs. The new projected growth rate of the merged company is 25%, according to the press releases. If growth rate is halved one should expect the PE of about 50, to be halved. Since the 'E' isn't going to double (they say that the union will be accretive to earnings, but there will be more total shares) I expect that the 'P' will be halved. It has already come down about 30%, so I see another 20% take down to around 20 or perhaps less, depending on how well the merger is accepted by the institutions. The institutions so far have not liked the idea of owning CCA as a REIT, and they might even be prevented in owning REITs by their prospectuses or articles of incorporation, etc. CCA could become a dormant stock without institutional ownership. I could be wrong, but I didn't want to gamble with my hard earned money. So I sold my entire position mid week. G/L Tulvio