In a memo signed February 21, 2017, but was released to the public late Thursday (February 23, 2017), the new U.S. Attorney General, Jeff Sessions, rescinded the order. Sessions decided not to phase out the use of private prisons by the federal government and that bodes well for prison stocks. In August 2016, less than an hour after the news broke, shares of Geo Group, Inc. ($GEO) and Corecivic (formerly known as, Corrections Corp. Of America) ($CXW) imploded over -35%, and -25% respectively. CoreCivic Inc. and Geo Group Inc., are some of the largest for-profit prison operators in the country. Geo Group hit a new record high and shareholders of both stocks are very happy the long term contracts are still in place.

Source: Forbes February 24, 2017 13:22 UTC