"It’s important to note that today’s announcement relates only to Bureau of Prisons correctional facilities, which make up 7% of our business," says Correction Corp. of America (NYSE:CXW) in a note sent to StreetInsider.
The IG report used to buttress the DOJ's decision to end private prisons for the BOP has "significant flaws," says the company. "The findings simply don’t match up to the numerous independent studies that show our facilities to be equal or better with regard to safety and quality, or the excellent feedback we get from our partners at all levels of government."
After falling 46.9% in the regular session, the stock's higher by 23% in busy after hours action. GEO Group up 0.7% after hours following a 39.6% regular session decline.
Previously: Prison stocks defended at Canaccord (Aug. 18)
Previously: DOJ to end use of private prisons - Corrections Corp, GEO Group crumble (Aug. 18)