Bill Ackman was the closing speaker at the Value Investing Congress in New York City.
In his speech, he stated that he likes Corrections Corporation of America and went as far as to say that it is undervalued. He also went as far as to say that it is "one of the best real-estate businesses in the world".
Ackman cited CXWs low capital expenditures and primary client (the US government) as the reasons for his liking the company. There are also examples of overpopulation, like in California’s prison system which provides room for growth opportunities.
Ackman thinks that CXW's stock is worth $40-$54 based on a sum of parts calculation. CXW recently closed at $25.11, providing a current 37%-53% margin of safety.
Corrections Corporation of America is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. CXW currently operates 65 facilities, including 44 company-owned facilities, with a total design capacity of approximately 87,000 beds in 19 states and the District of Columbia.
CXW will release its 2009 third quarter financial results after the market closes on Wednesday, November 4, 2009.
Ron Baron owns 301,532 shares as of 06/30/2009, which accounts for 0.04% of the $11.99 billion portfolio of Baron Funds. It is assumed that Bill Ackman is currently buying.
In his speech, he stated that he likes Corrections Corporation of America and went as far as to say that it is undervalued. He also went as far as to say that it is "one of the best real-estate businesses in the world".
Ackman cited CXWs low capital expenditures and primary client (the US government) as the reasons for his liking the company. There are also examples of overpopulation, like in California’s prison system which provides room for growth opportunities.
Ackman thinks that CXW's stock is worth $40-$54 based on a sum of parts calculation. CXW recently closed at $25.11, providing a current 37%-53% margin of safety.
Corrections Corporation of America is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. CXW currently operates 65 facilities, including 44 company-owned facilities, with a total design capacity of approximately 87,000 beds in 19 states and the District of Columbia.
CXW will release its 2009 third quarter financial results after the market closes on Wednesday, November 4, 2009.
Ron Baron owns 301,532 shares as of 06/30/2009, which accounts for 0.04% of the $11.99 billion portfolio of Baron Funds. It is assumed that Bill Ackman is currently buying.
