GEO Private Prison Stocks Suffer
NEW YORK -
Shares of Geo Group Inc. dropped Friday on concerns that it may lose more contracts in Texas, while shares of other private prison operators rose.
The Texas Youth Commission canceled a contract with Geo Group (nyse: GEO - news - people ) Tuesday, following an audit that said conditions at the Coke County Juvenile Justice Center were unsafe and unsanitary. The center was the largest private juvenile prison in Texas, and brought Geo Group about $2 million in revenue per quarter.
On Friday, AvondalePartners analyst Kevin Campbell said Texas state legislators are considering a review of Geo's other contracts in the state.
3 comments:
If there were stock issued in the Colorado state prison system, it would be going up. The state announces the building of a $165 million prison for which there is no need, according to the agency that is building it. Yes, they sent some prisoners to Oklahoma, but they have been keeping and misclassifying drug offenders, which they also say are 1/3 of their population...and do not give them necessary drug rehag. Not the show a video type of drug rehab they do now, real rehab.
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