Private prisons, a "Trump trade," sink as foreign options emerge
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Shares in private detention center operators — once a core "Trump trade" — are quickly falling as the administration explores options to house deportees and other inmates overseas.
Why it matters: Companies like GEO Group and CoreCivic were among the biggest beneficiaries of a Trump victory, as the promise of mass deportations signaled a possible spike in demand for detention facilities.
Yes, but: The government has in recent days made moves to ship immigrants to Guantanamo Bay, Cuba, as well as held talks with the government of El Salvador about sending inmates to that country's massive prison.
By the numbers: Shares in GEO Group fell nearly 8% on Tuesday before climbing back slightly at Wednesday's opening.
- The stock more than doubled from Trump's election to Inauguration Day, but has fallen almost 20% since.
Shares in competitor CoreCivic fell almost 6% Tuesday, before also rebounding slightly Wednesday morning.
- The stock rose more than 75% from Trump's election to inauguration, but is off 18% since then.
The intrigue: Both stocks experienced a similar roller coaster ride in late 2016 and early 2017, when Trump first came to office.
- Both stocks rose more than 50% between his first election and inauguration.
- They both ended up losing about three-quarters of their value over the course of Trump's term.
