This is crazy. After last night’s election, a private prison’s stock has gone up! The Huffington Post has reported that after Donald Trump’s victory was declared, stock prices went up significantly for America’s two largest private prison contractors. CoreCivic is the nations largest private prison contractor. It’s stock up by 58% and GEO Group, the second largest contractor’s, stock raised by 28%.
The raise in the stock has been attached to two things. The first theory is America is showing its blatant resistance to the Obama administration and it’s desire to do away with the use of private prisons. The other being that people seem to think private prisons will be more useful seeing how Trump is shamelessly for barring illegal immigrants. The Huffington Post wrote,
The recent arrival of thousands of Haitian migrants at the U.S.-Mexico border, along with the ongoing influx of tens of thousands of Central Americans fleeing violence, has led U.S. Immigration and Customs Enforcement to renew a family detention center contract with a CCA facility in Dilley, Texas. ICE is also contracting a new immigrant detention center with CCA at a former federal prison facility in Cibola County, New Mexico.
“ICE officials have been vocal in recent months about increased needs based on increased apprehensions at the border,” Damon Hininger, chief executive of CCA, said during an earnings call on Thursday. “It is with great pride that we have been able to accommodate these developing needs.”
Contracts with ICE accounted for roughly a quarter of CCA’s federal business last year ― the largest share from a single agency. The U.S. Marshals Service, which in recent years has taken on a far larger role in detaining migrants who face criminal prosecutions, accounts for 16 percent of CCA’s federal contracts. Though the U.S. Marshals Service is part of the Justice Department, it was not required by the Aug. 18 memo to phase out its use of private prison contractors.”
Crazy!
Source: TSR
