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I have 31 consecutive profitable trades of 15% or better. How is this possible? Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. Many of these stocks are still at very reasonable valuations. Afraid of buying stocks at their highs? Think of it this way: a new high is really a future floor for companies with solid financial underpinnings. Quantitative momentum modeling makes it easy to identify stocks that can continue this upward momentum trend. Why does this happen? It's really very simple..ask me about what investors and cows have in common. I am $$$ MR. MARKET $$$. I AM HUGE!!! Bring me your finest meats and cheeses. You can join in on the fun. Register for free and you'll be able to post messages on this forum and also receive emails when $$$ MR. MARKET $$$ makes his own trades. ($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
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  1. #1

    Default GGI Sold ==> 65 Winners in a row for $$$MR. MARKET$$$

    I am HUGE!! The Patriots are HUGE! Today I sold GGI (old ticker was WHC) at a price of 29.75. Thatís a gain of 23%. Can you do that? You? You?? YOU???

    Ok, Iíll admit that it took me over a year to sell it, but the S&P 500 was up only 6.4% over the same period. That means that $$$MR. MARKET$$$ is the Patriots, and the market is Peyton Manning.

    That means that I have 65 consecutive profitable trades of 15% or better. That is insane. Thatís like holding the Colts to 3 points. I am the greatest stock picker on the planet!! No one can hold a candle to me. Well, they can hold it, but I would blow it out.

    So another $$$MR. MARKET$$$ pick will be coming soon. Iíll run a dump tomorrow, but I wonít share my picks unless you tell me how great I am.

    $$$MR. MARKET$$$

    http://www.mrmarketishuge.com


    ================================================== ==

    01-09-2004, 01:10 PM
    mrmarket
    Administrator Join Date: Sep 2003
    Posts: 944

    WHC ==> The NFL Playoffs winner

    ďHope is a dangerous thing. Hope can drive you crazy.Ē
    - The Shawshank Redemption

    Remember the Longest Yard (Mean MachineÖ.Mean MachineÖMean Machine)? Cool hand Luke (mmmmÖ..eggs)? Monsterís Ball? What do all these flicks have in common? No not Halley Berry's hot ass. They are all prison movies and every one knows that prisons are big money. Now that they are in the private sector itís money, more money!

    Today I bought WHC (Wackenhut Corrections) at 24.11. I will sell it in 4 to 6 weeks at 27.73. Hereís why I like WHC:

    WHCís stock is up 187% in the last 12 months yet its PE is only 9.2 (including the one time earnings gain). Bargains galore! You like price momentum?? WHCís R^2 for the last 12 months is 0.95! Thatís a Rembrandt! Also take into account the stocks beta of 1.08, which indicates that if the market continues to climb, WHC will go right along with it. If the market stumbles, however, WHCís low PE and rock solid cash flow will protect its downside. Why? For now, though, the U.S. penal system continues to put away more people than it has room for which would continue to provide some steady returns for investors for a while.

    Even more interesting is if we assume initial earnings of $47.5 million grow at a rate of 15.00%, and we discount those future earnings at a rate of 15.00%, we arrive at a net present value for the company's next 10 years of earnings of $475 million. To account for potential earnings beyond the 10th year, we estimate a growth rate of 6.00%, a discount rate of 12.00%, and we arrive at a continuing value of $839 million. To complete the calculation we add these two figures together, subtract the long-term debt for WHC ($305 million), and divide by the outstanding shares (9.33 million) to get a per share intrinsic value of $108.13.


    The private prison operator should benefit from rising jail populations and state budget constraints. Who says crime doesnít pay? Wackenhut stands to benefit from these trends. WHC controls approximately 22% of all beds under private contract. WHC is also pursuing contracts for 1,000 mental health beds (Juicy Fruit?) in multiple states, and should be well positioned-to win some of this new business.

    Tough-on-crime state and federal sentencing laws keep offenders locked up for a long time. Current demographics are also bullish for the corrections industry. Convicted criminals 18 to 24 years old make up a big percentage of new inmates. Just watch what ďthe TerminatorĒ does in California, where a lot of new criminals reside!. ďTalk to the hand!Ē. New convicts don't have enough beds: The federal system was 33% overcapacity last year. And with states and the federal government financially strapped, the public prison-building spree of the 1990s is a thing of the past. Private-sector corrections outfits such as WHC can run prisons for 10% to 15% cheaper than the government can. Actually the real secret is that they water down the mashed poatatoes. This reduces their food budget. Quite frankly, outperforming the government isnít overly difficult.

    Demographics will also likely contribute to inmate population growth. Males between the ages of 18 and 29 are more likely than other groups to be locked up. Their number, which shrank from 1991 to 1996, has jumped to 14 million today from 12.6 million in 1997. A half million more are expected by 2005. We can always put these prisoners on a plane and send them to Afghanistan and Iraq, but thereís no guarantee that they wonít find their way home.

    WHC has seen their top line revenue growth expand 20% per year. While companies in other industries are forced to cut back to hold up their earnings, WHC just watches the money pile in. All this over a P/E of 9.2. Itís a growth company, itís a value company, itís a candy mint, itís a breath mint. Seriously, its 15% Return on Equity speaks for its successful model.

    I prefer WHC over the other corrections for profit companies because Wackenhut Corrections is the only outfit with significant operations outside the U.S. This gives WHC a leg up to export their business model to other countries facing similar increase in demand. You think itís all Pollyanna oversees? WHC has 49 facilities in the U.S., Australia, South Africa, New Zealand, and Canada, with a potential capacity of 38,000 beds.

    WHC performed the financial steal of the century last July. (steal / prisons bahaha I murder me). Prior to July 2003, the company was a 57%-owned subsidiary of Group 4 Falck, a Danish security and correctional services company, which acquired The Wackenhut Corp. (WHC's former parent) for $33 a share in cash in May 2002. In July 2003, Wackenhut Corrections repurchased all 12 million of its common shares owned by Group 4 Falck. Management knows that their future cash flows will be HUGE and with the stock trading at a steep discount, they felt this would be a handsome investment combined with the fact management now has more freedom to pursue its own strategy. The reward to shareholders will be tremendous, as the EPS will skyrocket despite the increase in LT debt. Itís like buying a summer house on the water that you canít afford. If the interest rates are low enough, the equity on the appreciation of the asset will cover your interest expense.

    Before we get to wacky about the Wackenhut name, you need to know that they will be changing their name to the GEO Group. When I was in college, I had a friend named Geo. He was wicked little but he always liked to get in fights. Once on Locust Walk, he got punched in the head by one of the defensive tackles on the football team and he went flying down Locust Walk. I guess you had to be there. Anyway, Geo is a millionaire now.

    WHCís third quarter numbers were HUGE. Hereís what the head warden had to say. George C. Zoley, Chairman and Chief Executive Officer of WCC, said, "We are very pleased with the strength of our 2003 third quarter operating and financial performance. Third quarter 2003 has been an exciting and invigorating period for WCC. We feel that we are well positioned to pursue further growth and continue to enhance shareholder value." How do you like those original statements? He should have said, ďBad boys bad boys whatcha gonna do?Ē but what heís really saying is ďBook em Danno..lock em up and throw away the key and donít forget to pay the warden on the way outĒ.

    I am HUGE!!

    http://www.mrmarketishuge.com
    __________________
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$

  2. #2
    Join Date
    Mar 2004
    Location
    Baltimore
    Posts
    258

    Default

    Congratulations once again $$$Mr. Market$$$.


    Earnings, earnings, earnings ... it's the mantra!

    You are HUGE!
    Happy investing,
    Dave

    My opinion is worth no more than the price you paid for me to give it.

  3. #3
    bombpg Guest

    Red face Hilarious, Great and Huge

    Mr. Market, you are clearly hilarious, great and HUGE. I am an 82 Penn grad who can't wait to see the Eagles spank the Patriots. Found your link through my investment in CMN. Hope that is a good one for both of us. Good luck (except with the Patriots!).

  4. #4
    Join Date
    Nov 2003
    Location
    ohio
    Posts
    8,930

    Default

    Mr. Market,
    You are so huge , GGI puts a Mr. Market photo outside the prison walls after the bars, gates, armed guards, electrified razor wire. No one has made it past the Mr.Market photo. They wet themselves and dejectedly walk back to their cell.
    billyjoe

  5. #5
    Join Date
    Dec 2004
    Location
    Keystone Heights, Fla.
    Posts
    448

    Default

    65 in a row is definitely HUGE. I eagerly await the next WINNER you pick!

  6. #6
    Join Date
    Nov 2003
    Location
    austin tx
    Posts
    189

    Default lesson learned

    I have nothing but bad memories on this one, I cut bait for a loss, had no faith, lesson learned. - congratulations Ernie, this is simply unbelievable -the photon
    The Photon

  7. #7
    Join Date
    Apr 2004
    Posts
    7,173

    Default

    HUGE
    .
    .
    .
    .
    .
    .
    .
    .
    say no more!

  8. #8
    Join Date
    Sep 2003
    Posts
    4,909

    Talking oops

    looks like I could have taken another buck and a half if I had just waited for your exit first... still, I'm not going to sneeze at a 15%+ gain. $$MM is the Master! He is HUGE!!!

    I can't wait for your next pick, Ernie, let's hit a home run on this one!

  9. #9

    Default

    Quote Originally Posted by jiesen
    looks like I could have taken another buck and a half if I had just waited for your exit first... still, I'm not going to sneeze at a 15%+ gain. $$MM is the Master! He is HUGE!!!

    I can't wait for your next pick, Ernie, let's hit a home run on this one!
    I would have sold when you did, but I was out getting a sandwich. That sandwich made me fat in more ways than one.
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$

  10. #10
    Join Date
    Sep 2003
    Location
    TONAWANDA N.Y.
    Posts
    1,215

    Wink You Are The Best

    Fantastic Terrific Super Stupendous Prodigious Marvelous Great
    Oh Hold It I Was Looking In The Mirror.

    Mr. Market Is Huge
    Ray Long

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