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Monthly Reports -- APA - WHC- UPS



 1. Report on Wackenhut Corrections Corporation  (WHC)
  September 16, 2000
  TO:  HPD Investment Group
  FR:  Nancy Montague
  For  September meeting

  1. (market price/share as of close of market, 9/14/00 - $9.6875)
  Shares owned:  105
  Market price:   $1017.19
  Cost basis:        $1730.13  ($16.48/share, averaged for two separate
  purchases plus commissions)
Unrealized dollar loss:  ($720.94)


  2. Research - 3 Strong Buy; 2 moderate buy

4 Press - (nothing recent;  I believe I forgot to include this last month).

  InfoTrac Web: General BusinessFile ASAP.

   Source:  Forbes, August 7, 2000 p70.

    Title:  Boys Will Be Boys.(Wackenhut Corrections Corp.)(Brief
            Article)(Company Profile)
   Author:  Mark Tatge

 Subjects:  Social services industry - Management
            Prison management companies - Management
Companies:  Wackenhut Corrections Corp. - Management
Locations:  United States
 SIC code:  8322

Electronic Collection:  A63607853
                   RN:  A63607853


Full Text COPYRIGHT 2000 Forbes, Inc.

WACKENHUT CORRECTIONS, the nation's number two private prison operator,
insists it does not have an image problem.

Sure, there have been stabbings, riots and sexual assault indictments at
Wackenhut-run lockups. But this stuff happens at prisons, the company says.

Maybe, but investors have reason to wonder. Once a Wall Street darling,
Wackenhut, with 48 prisons and 1999 revenues of $438 million, has fallen
hard. Wackenhut's stock is down 65% in the past year from a high of $21.
There's probably no better sign that Wackenhut is hurting than its recent
hiring of Los Angeles crisis p.r. man Michael Sitrick. He's the guy who
helped Food Lion
battle ABC and wrote the book Spin: How to Turn the Power of the Press to
Your Advantage" (see "Gotcha!").

"There are violent people in these prisons. This isn't summer camp," says
Sitrick. "Are these guys [Wackenhut] any better or worse than public
prisons?"

That's a switch. This, after all, is the industry that several years ago
said it would do a better job than the public sector: Not only will
taxpayers save a bundle, but they'd teach government something about
managing hooligans.
Easier said than done. In Texas, 12 former Wackenhut employees have been
indicted on charges that they raped or had sex with female inmates at a
state jail in Austin. Texas officials have taken control of the lockup. In
Louisiana, the U.S. Justice Department sued Wackenhut, alleging that guards
were beating young boys, throwing gas grenades into their barracks and
holding them for long periods in isolation. Wackenhut, which surrendered the
prison, disputes the allegations.
And if that wasn't bad enough, two prisons in New Mexico that Wackenhut was
hired to run were plagued by stabbings and deaths last year. State police
were rushed in when 300 inmates rioted. Wackenhut blames the state for
sending it rival gang members who had scores to settle.

Wackenhut Chief Executive George C. Zoley says that such problems are all
part of running prisons. "If someone wants to get in a food fight at one of
our prisons there is very little we can do to stop that," he says. "We have
had some operational issues at our higher security prisons, but those issues
have settled down."

Wackenhut, 56% owned by Wackenhut Corp., the Palm Beach Gardens, Fla.
Security firm, has added an ombudsman, an investigative arm, cameras to
monitor its prison staff, and regional vice presidents to monitor
facilities. All this costs money, which is one reason why expenses have been
rising faster than revenue at Wackenhut.

About 60% of the cost of running a prison is labor. Wackenhut and the
industry leader, Corrections Corp. of America, have had more than their
share of problems because they ineptly managed the prisons, among other
things hiring poorly trained guards. At one CCA prison in Youngstown, Ohio,
for example, six prisoners escaped after finding out motion detectors
weren't working.
All this bad publicity comes when voters are pressuring elected officials to
spend less on prisons and more on education. Crime is down, and the trend is
toward keeping drug offenders and nonviolent criminals out of jail.

Recognizing this, Zoley is steering Wackenhut toward opening higher-security
prisons paying more per prisoner--a daily average of $44.58 per inmate, up
from $38.43 in 1996. But that's no panacea for a weak bottom line;
high-security prisons cost more to build and operate. Moreover, accounting
rules now dictate prison companies' expense salary and training related to
opening a facility up front rather than spreading them over time. Which is
one reason why earnings are suffering. Wackenhut's revenues rose at an
annual
compound rate of 39% between 1994 and 1999, while profits grew even faster
at 58%. This year earnings will be flat at $1 per share. For the
growth-stock fans Wackenhut used to have, that's criminal.
                                -- End --

  Report on Apache Corporation (APA) -- September 16, 2000
  TO:  HPD Investment Group
  FR:  Nancy Montague, For Sept meeting

  1.  (market price/share as of close of market, 9/14/00 - $63.6250)
  Shares owned:  22
  Market value:   $1399.75
  Cost basis:        $774     ($35.19/share, inc. commission)
  Percent gain:   Unrealized gain:  $625.50

  2. Research - 11 Strong Buy; 14 moderate buy; 2 hold  -- As you all
  know, the price of oil is still very high.  OPEC is standing mostly firm,
  while making some conciliatory gestures.  It hasn't cracked yet.   Also,
the price of Natural Gas is only going up, as well.
 3. PRESS
A. Monday September 11 12:39 PM ET
Oil Stocks Rally After OPEC Sets Hikes
NEW YORK (Reuters) - Oil service and producer stocks, including Tidewater
Inc. and Exxon Mobil Corp., rose in midday trading on Monday after OPEC
announced an increase in production, bolstering the outlook for profits.
With crude prices hovering near their highest levels in a decade, the
Organization of Petroleum Exporting Countries announced a production hike of
800,000 barrels a day, or 3 percent.
Drillers and oilfield equipment suppliers jumped on the news, helping to
send the Philadelphia Stock Exchange oilfield services index up 4.6 percent
to an all-time high of 142.37, surpassing the previous record high of
142.03, set on Sept. 6.
``People who weren't in oil stocks are now all trying to get in. That's
driving up the price,'' said Joe Williams, a money manager with Kansas
City-based Commerce Bank Investment Management Group. ``There is not that
much stock available.''

B. Thursday September 7, 11:36 am Eastern Time
Apache Corp CEO says 2000 earnings to beat estimates
NEW YORK, Sept 7 (Reuters) - Apache Corp. (NYSE:APA) Chairman and Chief
Executive Raymond Plank said Thursday earnings for this year would soundly
beat Wall Street estimates on roaring crude oil and natural gas prices.
Appearing at the Lehman Brothers CEO Conference here, Plank said he expects
the oil exploration and production company to earn about $5.50 per share for
2000. Analysts expect earnings of $4.86, according to First Call/Thomson
Financial.


 Report on United Parcel Service (UPS)
September 16, 2000
 TO:  HPD Investment Group
 FR:  Nancy Montague
 For  Sept meeting

  1. (market price/share as of close of market, 9/14/00 - $55.4375)
  Shares owned: 32 @ Market price:   $1968  [purchased March 27]
  Cost basis:    [ original price 63  ea] $2024 + $8 commission = $2032 =
  $63.5 each
  Unrealized loss:  $258


  2. Research - 3 Strong Buy; 10 moderate buy   5 Hold

  3. PRESS
RESEARCH ALERT - United Parcel raised to strong buy
NEW YORK, Sept 13 (Reuters) - Morgan Stanley Dean Witter said on Wednesday
it raised its rating on United Parcel Service Inc. (NYSE:UPS) - news
</n/u/ups.html>) to strong buy from outperform.
-- Has an $80 target on the shares.
-- Further details were not immediately available.
-- Shares of UPS closed at $53-1/2 on Tuesday, above a low of $49-1/2 but
below a high of $76-5/8.