Corrections Corp of America (NYSE:CXW)

CAPS Rating: 3 out of 5

The Company is an owner and operator of privatized correctional and detention facilities and prison operator in the United States behind only the federal government and three states.


Player Avatar greenwave3 (34.14) Submitted: 6/3/2010 10:22:31 PM : Underperform Start Price: $15.44 CXW Score: -41.33

Something about this industry rubs me the wrong way. Somehow this is worse than war profiteering since these companies profit from causing pain, misery, and starvation.

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Member Avatar JakilaTheHun (99.93) Submitted: 6/16/2010 10:33:06 AM
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I agree.

I've actually received more requests for a synopsis on this company than any other company out there, but I find myself morally opposed to the entire industry. And my theory is that if I dislike what a company does, chances are that a lot of other people do, too. That potentially means there are big risks.

The question here might be 'when will America's prison complex hit its apex'? The financial crisis actually creates more pressures to end the Drug War, which is one of the primary drivers of prison growth.

Guess I'm not going to red thumb this, because it's difficult for me to convince myself that America's misguided politicians will suddenly reverse course on this, but there's no way I could, in good conscience, green thumb it or invest in it.

Member Avatar thejatrain (< 20) Submitted: 11/5/2010 12:33:18 PM
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Totally agree. And the terrible truth is that the corrections officers union is a huge one that influences politicians and policy. Take a look behind the recent failure of Prop 19 in California and I guarantee these guys poured money into the opposition. Generally speaking, though, this is a business that benefits when people are incarcerated. That makes no sense and it's really an embarrassment our government allows it.

Member Avatar joezag (< 20) Submitted: 1/14/2011 5:52:03 PM
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This is a great Opportunity. It will make money mostly because the Government unions are destroying the Country's taxpayers.
These disagreements above are Political only.

Member Avatar gatzbp (89.54) Submitted: 5/20/2012 8:36:15 PM
Recs: 3

If you won't own a stock because you disagree with the morals, that should limit your universe well beyond Corrections Corp. Bank of America and Citi kick people out of homes... Goldman Sachs pays repeated SEC fines... Fast food industry helped facilitate the meteoric rise in diabetes. Apple w/Foxconn... list goes on. Many companies at some level of their organization do something you might consider unethical or 'mean' if you dig deeply enough.

CXW doesn't send people to prison; CXW doesn't incarcerate people. CXW deals with a problem created by others, which is the over population of prisons. From metrics, CXW prisons are less crowded than state run prisons and with better overall rated conditions.

I don't know how the stock will do but if you invest with real money, you should come up with better reasons.

Member Avatar KayakerRW (60.13) Submitted: 1/4/2014 9:28:18 PM
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Texas, Florida, and now Idaho are seeing the folly of turning over prisons to CCA. A number of Americans are becoming concerned about the push to criminalize behaviors that aren't truly dangerous to others or increase penalties just to increase the prison population so that companies such as CCA can make more profits. Perhaps in the next decade, the U.S. will no longer lead the world in the number of people imprisoned, and both the state and federal governments will realize that there are more cost effective ways of dealing with non-violent offenders than imprisoning them, especially in poorly run for profit facilities.

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