An Incorrect Pick
Corrections Corp. (CXW) has had a great run over the 17 months. Shares of this company, a for-profit manager of prisons and juvenile detention centers, shot up from a summer 2011 low of $18.40 to close Wednesday at $35.42.
For all of 2012, earnings per share are likely to be flat with 2011 at about $1.54. Why has the stock moved so sharply? Corrections has announced its intention to convert to a real estate investment trust. That would allow for higher dividend payments than the current yield of 2.26%. It is for that reason alone that the stock has moved....242 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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