Mark Emkes’s shares were purchased at the average share price which was $17.2, for a total trade of $171,889. “The way it’s been left is we have a written commitment of interest to extend the contract.The option was to accept all terms and conditions as they were”.
Advertisement
The ruling only applies to federal prisons, which account for a relatively small percentage of America’s incarcerated.
Critics, however, have said these prisons are more violent as well as more expensive to run.Michele Deitch, a senior lecturer at the Lyndon B. Johnson School of Public Affairs at the University of Texas in Austin, said a growing push to shut private prisons will “increase the pressure” on individual states to restrict their use. Washington had to turn to private prisons since the number of inmates has quadrupled in the country since 1980.
But cracks in the plan emerged, with incidents of assault and other problems in private facilities piling up. If the contract had been renewed, it would have applied specifically to the GEO-owned D. Ray James Correctional Facility in Georgia, allowing it to operate until September 2018.
Yates says changes in federal sentencing guidelines should reduce prison populations still further in the coming years, reducing the need for contract prisons.
Corrections Corp., the largest USA owner of private prisons, owned or controlled 49 facilities and 25 halfway houses, and managed an additional 11 sites owned by its government partners as of June 30, according to its second-quarter regulatory filing.
The agency that is directly affected, the federal prisons bureau, accounts for 7 per cent of Corrections Corp.’s business, the company said Thursday.
The publicly traded companies of CXW and GEO were immediately slashed. In 2015, the Bureau of Prisons generated 11 per cent of the REIT’s revenue, or $190-million, according to its annual report. “We believe that this contract renewal is indicative of the BOP’s continued focus on quality as it evaluates its current privately-operated facilities”.
“This action by the Bureau of Prisons does not affect our recently released guidance for the remainder. of calendar 2016”, CCA Chief Executive Damon Hininger told analysts on a conference call. Those would have been worth $3.22 million if exercised at $27.22, Corrections Corp.’s closing price yesterday. The median estimate represents a 82.13% increase from the last price of 17.57. Breton Hill Capital Ltd., a Ontario – Canada-based fund reported 219,574 shares.
The U.S. Department of Justice announced Thursday that it plans to stop the use of privately operated prisons. Meliker has a “hold” rating on Corrections Corporation and a “buy” rating on Geo Group.
Advertisement
Thursday’s decision only impacts federal prisoners held by the Bureau of Prison.
