1 week ago
Shares of US-listed CoreCivic Inc. and the GEO Group Inc., both known for investing in private prisons in the US, also known as "jail stocks", have nearly doubled in value since Donald Trump's election triumph last week, betting on his upcoming immigration policies.
Shares of the GEO Group have risen 87% since the closing of November 4, while those of CoreCivic have also risen 82% in value since then. Both the companies are now part of the so-called "Trump Trades", stocks who are seen as potential beneficiaries of Trump's policies over the next four years.
| Date | CoreCivic Returns | Geo Group Returns |
| November 5 | 3.30% | 6.70% |
| November 6 | 29% | 42.10% |
| November 7 | 25.60% | 13.60% |
| November 8 | 2% | 3.80% |
| November 11 | 6.30% | 4.40% |
The GEO Group invests in private prisons and mental health facilities in the US, Australia, South Africa, and the UK.
CoreCivic, formerly known as the Corrections Corporation of America, owns and manages private prisons and detention centers and operates others on a concession basis.
In his post-election win address to supporters, President-elect Trump had pledged to carry out the largest mass detention and deportation of immigrants in US history.
“We expect the incoming Trump administration to take a much more aggressive approach regarding border security as well as interior enforcement, and to request additional funding from Congress to achieve these goals,” George Zoley, the founder and executive chairman of GEO Group Inc., said on an earnings call Thursday.
GEO Chief Executive Officer Brian Evans added that unused beds at their facilities could generate $400 million in annualized revenues if filled, and the company has the capacity to scale up an existing surveillance and monitoring program to cover “millions” of immigrants for additional revenue.
“This is to us an unprecedented opportunity,” he said.
The executives also said they could scale up services they already provide for secure air and ground transport, potentially transporting hundreds of thousands of migrants.
These stocks had received a boost post Trump's 2016 election win as well.
(With Inputs From Agencies.)
