Are prison stocks a secure pick? - Apr. 30, 2004: "Attracted by an expanding prison population and an overcrowded penal system, investors have sent shares of Corrections Corp. of America and Geo Group soaring over the last year. Both stocks now trade at or near multi-year highs.
'The prison population really never stops growing,' said Irving Lingo, chief financial officer with Corrections Corp. 'Even if the growth rate slows, the real issue is that inmates are coming into systems that are already overcrowded.'
Throughout the last decade, the U.S. prison population has grown by 3.6 percent annually to 2.2 million people -- or one in every 143 residents -- at the end of 2002, according to the Bureau of Justice Statistics.
That may be a scary statistic if you're a student of sociology, but it points to a nice 'customer base' if you're Corrections Corp. or Geo Group."