By Daria94 @Adobe Stock
Aparna Narayanan of Investor’s Business Daily reports that Trump has vowed to crack down on crime and illegal immigration, and private prisons and detention centers were seemingly one answer to overcrowding. Narayanan writes:
Geo Group (GEO) and CoreCivic (CXW) surged again on Monday after a huge rally last week spurred by earnings and elections. CoreCivic stock and Geo stock extended gains after President-elect Donald Trump picked immigration hardliner Tom Homan as his top border official. […]
CoreCivic stock scored a 29% election and earnings breakaway gap last Wednesday. It jumped above a 16.54 buy point in the biggest volume since shares began to consolidate in June, MarketSurge shows. The prison stock soared nearly 88% last week before paring the weekly gain to 69%. […]
Many investors credited Trump’s win for the initial rally in the prison stocks. Trump vowed to crack down on crime and illegal immigration, and private prisons and detention centers were seemingly one answer to overcrowding.
This was a sharp reversal from former President Barack Obama’s order to phase out private prisons. In February 2017, then Attorney General Jeff Sessions turned the green light back on for private prisons. […]
Both Geo stock and CoreCivic languished for much of the past year before breaking out to highs this week amid the elections and earnings.
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