Business Description:
As of 1Q21 (March 2021)
Catalysts:
Moat with a single large competitor, CoreCivic (CXW)
Southern Border Crisis with increased apprehensions from ICE (under Department of Homeland Security - not affected by Executive Order)
Heavily shorted with 21% of shares outstanding short
Risks:
President Joe Biden issued an Executive Order, preventing the DOJ to renew its contracts with private prisons (Negatively affects revenues from BOP and USMS)
Negative public view
Private Prison population in decline
Banks unwilling to loan money to private prisons
Refinancing huge debt might be difficult
Cut dividends and might lose REIT status
Political risk
Financial Analysis:
Continue to the Full Analysis: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/35735563
