Thursday, January 21, 2010

Corections Corp Corrects!

Corrections Corp (CXW), one of our larger holdings, has been really taking it on the chin for the last two weeks.  CXW is the nations largest private prison operator. It's a great business concept and I still believe they will do very well over time.

The main reason for the quick sell off seems to be questions about whether some of the state contracts, the income from which had been built into future revenue assumptions, will be renewed.  This is enough of a 'fly in the ointment' to cause us to quickly exit.  Could have/should have done it a week ago, and we may be selling at a short term bottom, but there are enough companies with solid no questions stories for us to own.  We don't need unknowns like this now.  We're out.  Sorry.

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