Four Prison Stocks Worth Locking Up in Your Portfolio?

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Prison Stock?

[dropcap]B[/dropcap]y No means are we endorsing setting up an e-trade account and purchasing some good ole prison stock. If you did you would be owning a good bit African American males by any other means. This is Capitalism at its finest. But we have to remember it’s business not personal. A cold inhumane system devised without the fail safe of melanin.

One naively would think that if why not make money of the robbers, murders, drug dealers, etc. One would, but if they knew the details of the system that led to the incarceration in the first place may understand the slight of hand. Not far from where I live, there are signs that enforced a non cursing zone. Updated black codes I call it. So if you’re caught so called cruising a police has probable cause to search your car… hmmm. I wonder what legislation led to the determination of whose neighborhoods these would be put in.

Just something to think about where the majority of the incarcerated are African Amercan Males, the same during slavery. You have to wonder about this and other updated black codes that are right under our noses and most don’t even notice. It’s no accident. The actual article is as follows.

 

It seems like not a week goes by where we don’t hear about a celebrity, a sports figure, a business person, or a politician going to jail. For the last several days, we’ve been bombarded with news about Paris Hilton going to jail. So is there a way to make money off these jailbirds? There are actually several publicly traded companies that provide prison services to governments.

Here are a few that you should thoroughly research before letting them into your portfolio:

The largest by both market cap and revenues is Corrections Corp. of America (CXW), which is a company with over 40 facilities that is based in Nashville, Tennessee. It has a P/E of 34, and a PEG of 1.8. Its revenues were up over 52% year over year on a revenue gain of 11.5%.

The next largest company is Geo Group Inc. (GEO), which is based in Boca Raton, Florida. It has facilities in the United States, Australia, Canada, South Africa, and the U.K. It has a P/E of 36, and a PEG of 1.7. The stock trades on the NYSE.

Cornell Companies Inc. (CRN) is a Houston, Texas company, which in addition to providing detention services, also provides educational services to detainees. It has a P/E of 28, and a PEG of 2.5.

Avalon Correctional Services Inc. (CITY.PK) is a micro-cap stock which trades on the pink sheets, and should be considered very speculative. It operates correctional facilities in Oklahoma, Texas, and Colorado.

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