Stocks for the two largest private prisons in the country has skyrocketed since Donald Trump’s victory…
According to Bloomberg.com
Corrections Corporations of America was up close to 40% as of 9:49 a.m. ET.
GEO Group, another prison provider, was up around 20%. Those moves mean the stocks have recouped some of the losses they’ve registered since August, when the Department of Justice said it would start phasing out privately run jails. Analysts say President Trump would be likely to reverse that policy, and see an added windfall to the companies stemming from the difficulty of implementing his deportation agenda.
“Private prisons would likely be a clear winner under Trump, as his administration will likely rescind the DOJ’s contract phase-out and ICE capacity to house detainees will come under further stress.” analysts at Height Securities LLC wrote in a note published this morning, referring to the Immigration and Customs Enforcement body by its acronym. Mass deportation of illegal immigrants would be likely to run into legal obstacles, “further necessitating a sizable contract detention population,” the analysts said.