A 75% surge in just one week—wild enough for you? 🚀
🔥 Thanks to Trump’s election buzz and a strong earnings report, private prison stocks are back in play.
Want to know the logic behind the rally? Let’s dive in!
🎉 Congrats to @Pekaz for the 121% profit from $Geo Group Inc(GEO)$ !
👉 Got a winning strategy of your own? Share your golden trading tips in the comments below! 👇
🔎 What’s the deal with GEO?
GEO Group operates private prisons, a business model somewhat similar to hotels—charging based on occupancy days. Instead of payments from inmates, however, the U.S. government foots the bill. The company functions like a REIT, a unique structure common in the U.S.
Why is it a Trump concept stock?
👔 Republican Viewpoint: Republicans typically support private prisons, citing their efficiency and cost-saving potential. By scaling capacity to match demand, private facilities avoid the financial strain of unused beds—a frequent issue in public prisons. To Republicans, privatization means smarter spending and streamlined operations.
🌊 Democratic Viewpoint: Democrats often oppose private prisons, arguing that profit-driven facilities may compromise inmate welfare and rights. Concerns about corruption and abuse frequently arise. Under Democratic leadership, policies tend to reduce reliance on private prisons in favor of improving public alternatives.
How Do Private Prisons Generate Revenue?
Lower Operating Costs: Private prisons save money with simpler infrastructure and reduced staff expenses. For example, private guards often earn minimum wage, unlike their public-sector counterparts.
Inmate Payments: Wealthier inmates may pay for better amenities, such as electronics or reduced labor obligations.
Inmate Labor: Most inmates are required to work unless exempted by illness or disability. Tasks range from manufacturing military helmets to assembling household items, providing private prisons with low-cost labor for businesses.
Government Contracts: Guaranteed occupancy rates negotiated with the government ensure steady income.
After bottoming out at $4.90 during Biden’s term, GEO shares have surged back into the $25–$30 range, with speculation of even higher gains if Trump wins the presidency.
💬 Do you think prison stocks will break new highs under Trump?
Let’s talk below! 👇
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Comments
It’s definitely a Trump stock—completely reliant on gov and policies.
Thanks for explaining! Private prisons make money from both the gov and inmates.
Regret not paying attention to this stock earlier