US private prisons pinned a lot on Trump’s policies, but crime didn’t pay in 2017
New York — Investors who bet on private prison operators as big winners from US President Donald Trump’s tough line on crime and illegal immigration are looking back at a bruising year of high hopes and disappointment. Some, however, say the stocks still offer good value, even though an anticipated windfall under the Trump administration has so far failed to materialise. They say the two listed operators — GEO Group and CoreCivic — stand to win contracts from states struggling with prison overcrowding, such as Kansas and Oklahoma, and have plenty of room to accommodate new demand. Valuable properties owned by the two companies, which operate as prison real estate investment trusts (reits), and long-term federal contracts with minimum revenue guarantees also make them attractive, they say. The administration’s proposals to bolster the US Immigration and Customs Enforcement (ICE) agency could help in the future, though it is still unclear how much new money it will bring. "People are ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.