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Adam

Enjoy investing in undervalued businesses and watching them grow.

WASHINGTON, DC - JANUARY 25: U.S. Vice President Kamala Harris (R) looks on as U.S. President Joe ... [+] Biden speaks after signing an executive order related to American manufacturing in the South Court Auditorium of the White House complex on January 25, 2021 in Washington, DC. President Biden signed an executive order aimed at boosting American manufacturing and strengthening the federal governments Buy American rules. (Photo by Drew Angerer/Getty Images)

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News broke on Tuesday that President Joe Biden will end private prison contracts, which is something that President Trump signed into law shortly after he took office. Back in February 2017, I wrote this article on Prison Stocks Soar Under Trump As Jeff Sessions Okays Private Jails that outlined what happened. Now, President Biden is reversing that action and going back to how things were under the Obama Administration before Trump took office.

President Biden is using racial equality as the reason why he doesn’t want to renew the contracts with private prisons. This move should not be unexpected since it is one of several things that Biden is doing to unwind Trump’s policies.

Two Prison Stocks:

Back in 2017, I wrote about Geo Group Inc. GEO and Corecivic Inc CSX and both stocks fell after the news broke today. As of this writing, both stocks are down and remain in longer-term down trends.

Bottom Line:

Interestingly, these stocks have fallen over the past few years even with the government contracts. Anything can happen in the market but now that these contracts are not going to be renewed, investors are asking what’s next for prison stocks?

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Adam

Want to buy monster stocks early—before they breakout? Adam authors the very popular FindLeadingStocks.com report, where he helps people buy monster stocks – early. He

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