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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWall Street bets on prison growth from border crisis
There's a crisis on the U.S.-Mexico border, and Wall Street is betting that it will result in a boom for private prisons.Geo Group (GEO)and Corrections Corporation of America (CXW) are two of America's largest for-profit prison operators. They have thousands of open beds, and they have deep relationships with the federal agencies charged with doling out contracts to house undocumented immigrants, including children.
"It's highly likely that the federal government will have to turn to the private sector for help with this crisis. Both companies are extremely well positioned," said Brian Ruttenbur, an analyst at CRT Capital Group who covers the stocks of Geo Group and Corrections Corporation of America (CCA).
Investors are clearly seeing dollar signs. Shares of both CCA and Geo Group have spiked since the border crisis landed on front pages this summer. CCA has climbed 8.5% since July 30, and Geo Group is up over 7%. That's a lot better than the S&P 500's 1.5% advance over that time span.
http://money.cnn.com/2014/08/29/investing/border-crisis-prison-stocks/index.html?hpt=hp_t2
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Wall Street bets on prison growth from border crisis (Original Post)
IDemo
Aug 2014
OP
RKP5637
(67,111 posts)1. Making money at any cost to humanity. It's often a very sick place. n/t
annabanana
(52,791 posts)2. disgusting
prison for profit is a bad bad business for america
Laelth
(32,017 posts)3. Lovely. (sarcasm) n/t
-Laelth