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Prison Stoxxx

2,812 Views | 10 Replies | Last: 7 yr ago by BlackGoldAg2011
Waltonloads08
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AG
http://blogs.barrons.com/stockstowatchtoday/2016/08/18/prison-stocks-is-selloff-a-buying-opportunity/

buying the selloff, both GEO and CXW.

These guys arent going anywhere.

(I should also say that this is just my opinion, and any stock that just lost 40% of its value is high risk.)
Waltonloads08
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AG
In

CXW @ 17.08
GEO @ 19.79
RogerEnright
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Not close at all to this topic. Do you think the DOJ is posturing?
Waltonloads08
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AG
quote:
Not close at all to this topic. Do you think the DOJ is posturing?


I think they will fail to end their use of private prisons. That, and most of their business is not on the federal us govt level.
RogerEnright
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Interesting.
AgCPA95
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AG
Jumped in yesterday afternoon. Both are up 9-11% pre-market.
Waltonloads08
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AG
Yup, and I dont blame anyone for taking the money and running. I'll hold for the time being.

aggiesq
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AG
i started watching GEO after this thread got posted. this is freakin crazy



quote:
GEO Says U.S. Rescinded a Contract Extension
8 minutes ago - DJNF
Shortly after private-prison operator GEO Group Inc. tried to rebuild investor confidence by announcing a contract's extension by the Federal Bureau of Prisons, the government rescinded the extension.
The moves came a day after the government said it would phase out its use of private prisons over time, which slammed the stocks of publicly traded prison operators on Thursday.
GEO initially released a statement Thursday morning saying the contract for the D. Ray James Correctional Facility in Georgia would extend through September 2018.
But an hour and a half later, the company's stock was halted as it released a new statement saying that the government had rescinded its extension and that discussions between GEO and the Bureau of Prisons were ongoing. GEO said it expects to receive a new modified contract to operate the facility.
The facility currently houses 1,949 inmates, making up only a fraction of the 87,000 beds that GEO operates.
Shares rose 15% Friday morning after the halt was lifted. They closed down 40% on Thursday.
GEO and fellow private-prison operators are holding conference calls today following the Justice Department's decision Thursday to phase out its use of private prison
so DOJ says they're phasing out these deals, then company says BOP just renewed a deal, then company says BOP pulled out.

wow
Waltonloads08
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AG
Left hand of the DOJ doesn't know what the Right hand is doing.

Shocking for the federal govt, I know.

My belief is that they would like to end private prison use, but its not realistic and they are just trying to get better terms in the next go-round.
BlackGoldAg2011
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AG
quick update question here. I got in on both of these stocks towards the beginning of this thread. Geo seems to have come up a bit and stabalized a nice little bit above where I got in. CXW though has continued to slide downwards. any thoughts on why this downward slide has continued. with their announced dividend amounts it is a very attractive stock to continue to hold if it is not going to continue to fall to zero. So what is y'all's sentiment on this stock. still a good bet long term or grab the dividend and dump it? Or continue to pick up shares as prices keep falling to prep for a bounce back?
kylewhitener
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Any thoughts on this after last week's events?
BlackGoldAg2011
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AG
My thoughts are I made a killing on Wednesday by continuing to buy in as they fell last month. Not sure if i would keep buying at this point though.
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