Youth Services shares skid $4.75, to $22

Maryland Watch

June 19, 1996

Problems at several big corrections companies are to blame for a nearly 18 percent drop yesterday in the stock of Youth Services International, the Owings Mills operator of correctional academies and programs for young people, an analyst said.

Youth Services stock dropped $4.75 to end the day at $22 on trading volume of 234,600 shares, compared with a three-month average daily volume of 154,463.

Phil Fisher, an analyst with Genesis Merchant Group Securities in San Francisco, said "nothing has changed at the company" to justify the decline. "I rate it a buy," he said.

Fisher said Youth Services' shares were hurt by problems at Wackenhut Corrections Corp. and Corrections Corp.

Shares of Florida-based Wackenhut have been declining in value since Thursday, when a Wall Street Journal article said it is one of the stocks many analysts consider overpriced.

Nashville-based Corrections' stock has fallen 22 percent since the disclosure last week of a Securities and Exchange Commission investigation into the activities of a newsletter that promoted the stock. It dropped $5.25 to $58.625 yesterday.

Pub Date: 6/19/96

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