GEO

Go Directly to JailReaders might care to capitalize on this nascent trend by looking into shares of commercial jails. Florida-based Geo Group (GEO:NYSE) comes to mind as a prominent up-and-comer in this field of endeavor, with some 53,144 “beds under management” (a polite euphemism borrowed from the folks in health care).GEO (GEO Group, INC.)


NYSENow, GEO is a bit smaller then most of the companies that I look at, with a market cap just a hair under $1 billion. But it is steadily improving itself by bringing more and more “beds” under management (14% in the last quarter alone). And, unlike so many other businesses, they are indeed thriving in this criminally competitive market.Net income is up 25% between 2007 Q3’s $12.7 million (25 cents/share) and 2008 Q3’s $15.9 million (31 cents/share). Profits over the same stretch rose 34 cents per share, beating expectations by 4 cents.It’s a fair bet that GEO will continue its growth without terribly much trouble, what with states coming up so short these days and need so obviously growing. The current share price as I sit to write is $18.90. Gains of 20% per quarter should be easy to maintain, and a double by summer is certainly not out of the question.

Turning Prison Into Profit (Without Going to Jail)

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