Jeffrey Dow Jones
Hedge fund analyst, newsletter provider, research analyst, portfolio strategy

Privatized Prisons: Public Relations Nightmare But A Pretty Great Business

When Corrections Corporation of America (NYSE:CXW) hit my desk a few weeks ago, the first thing I said was, "you gotta be kidding me."

Privatized prisons?

I honestly had no idea such a thing was even real. But it's real, and as you'll see in minute, it's spectacular.

Once I got over my initial bemusement and befuddlement, I started thinking it through. As somebody who's spent more of his life than he probably should have studying economics, I love businesses in markets where there are few suppliers. Even if you've never picked up a textbook, you probably already know that monopolies (and oligopolies) are pretty awesome businesses. There's a reason why they're illegal.

But you know what else...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details