Texas Prison Bid'ness

The GEO Group's stock continued to slide on Friday on concerns that the scandal and ultimate withdrawal of juvenile detainees from the company's Coke County detention center in Bronte, Texas might endanger to other contracts the company has in Texas. According to the Associated Press:

Shares of Geo Group Inc. dropped Friday on concerns that it may lose more contracts in Texas, while shares of other private prison operators rose.

The Texas Youth Commission canceled a contract with Geo Group Tuesday, following an audit that said conditions at the Coke County Juvenile Justice Center were unsafe and unsanitary. The center was the largest private juvenile prison in Texas, and brought Geo Group about $2 million in revenue per quarter.

On Friday, AvondalePartners analyst Kevin Campbell said Texas state legislators are considering a review of Geo's other contracts in the state.

The stock dropped $2.08, or 7 percent, to $27.76.

It's better news for CCA which has seen their stock prices grow in recent days, despite Williamson County possibly terminating the contract to operate the notorious T. Don Hutto detention center in Taylor this coming week. Again from the AP:

Corrections Corp. of America said it increased a contract with the state of California, and will provide housing for up to 7,772 inmates. It previously agreed to house 5,670 inmates. Shares rose $1.54, or 6.1 percent, to $26.85.

Cornell "stock rose $1.13, or 4.5 percent, to $26.19, and reached an annual high of $26.21."

You can always see the latest financial info for GEO group at: http://finance.google.com/finance?q=geo+group&hl=en&aq=t