This is why they're all flocking to Arizona - they hope we keep increasing our incaceration rates....think about it. Don't let these vampires into your homes and communities. hey would just as soon incarcerate your kids as anyone else's - and will...
March 18, 2010
By Louis Navellier, Editor, Blue Chip Growth
Louis Navellier is one of Wall Street's renowned growth investors. Investing for over 28 years, he has earned a national reputation as a savvy stock picker and portfolio manager. The New York Times called him "an icon among growth stock investors."
According to The New York Times, for the first time since 1972 we have seen a reduction in the
And what’s more, that reduction isn’t just a tiny dip -- state prisons held 1.4 million people as of January 1, about 6% less than the year before. That’s a substantial drop-off that could signal continued trouble for these corrections companies.
Don’t get me wrong, this drop is good news for public safety advocates, our overtaxed criminal justice system and a host of others. But for investors who always thought publicly held prison companies were low-risk ways to make a bundle off the corrections system, it’s been a rude awakening.
Let’s look at each of these three prison stocks, and why they are each “sells” right now in my FREE Portfolio Grader stock ranking tool.
Prison Stock to Sell - Cornell Companies, Inc. (CRN)
Cornell Companies, Inc. (CRN) provides correctional, detention and rehabilitation services that are outsourced by federal, state and local government agencies. Its Abraxas Youth and Family Services division also provides residential, detention, shelter care, and community-based services for juveniles between the ages of 10 and 18. First Analysis Securities recently downgraded the
Prison Stock to Sell - Corrections Corporation of
Corrections Corporation of America (CXW) owns and operates privatized correctional and detention facilities in the
Though CXW’s fourth-quarter profit beat the Street in early February, the company announced a weak Q1 outlook with estimated earnings of 28 cents to 30 cents a share, compared previous estimates of 33 cents. Shares have been brutalized so far in 2010, losing 17% even while the market has been moving up, and it looks like more bad news is yet to come.
Prison Stock to Sell - Geo Group, Inc. (GEO)
The GEO Group, Inc. (GEO) provides government-outsourced correctional services for prisons, specializing detention and mental health. GEO is a truly global prison stock, with facilities in the
As of this writing, Louis Navellier did not own any shares of these stocks in personal or client portfolios.