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CCA stock gets favorable outlook despite bad press; New stock ticker at TPB

Corrections Corporation of America (NYSE: CXW)'s stock is getting favorable review from stock analysts despite a string of seemingly bad news, according to a story in the Tennessean ("Analysts give CCA an upbeat outlook: Stock price doubles amid abuse reports," September 1),

Despite state budget crunches, reductions in beds at jails and controversy surrounding at least two detention centers, analysts and criminal justice experts say Nashville-based Corrections Corporation of America's financial forecast remains strong.

The story goes on to detail what would appear to be a host of bad news for CCA, including the allegations of abuse of Hawaii women at a Kentucky prison and the recent changes at the notorious T. Don Hutto detention center in Taylor, TX.

Those risks are real as CCA is embroiled in a federal lawsuit in Kentucky stemming from rape allegations at the Otter Creek Correctional Center in Wheelwright, Ky. An accompanying investigation involves 23 female inmates, including seven from Hawaii, who say they were sexually assaulted. Hawaii officials have said they are removing inmates from the CCA facility. CCA has asked for the lawsuit to be dismissed on procedural grounds.

Meanwhile, CCA's T. Don Hutto facility, which garnered national attention after reports of questionable treatment of immigrant families, will be converted to a female detention center, said company spokeswoman Louise Grant. "If there are any allegations, we rapidly move to take action," Grant said.

In another story ("Private prison firm to give back pay to guards," Kansas City Star, August 31), it has become public record, thanks to a legal intervention by our friends over at Prison Legal News, that CCA agreed in February to pay $7 million to employees to settle a unclaimed pay lawsuit by prison employees.

Nashville-based CCA is one of the three private prison corporations with publicly traded stock on the New York Stock Exchange.  The others are the Boca Raton, Florida-based GEO Group (NYSE: GGI) and Houston's Cornell Companies (NYSE: CRN). You can now follow the fate of the private prison corporations' stock in the stock ticker on the left hand sidebar of the Texas Prison Bid'ness website. 

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