Before President Trump's election victory last November, the operators of private prison were on the death row as Obama's administration was planning to phase out the use of private prisons. And if Hillary Clinton was to be elected, the same policy could continue. This is why the two private prison related real estate investment trusts, CoreCivic(CXW) and GEO Group(GEO) had both seen their stock dropped to multi-year low of $12.99 and $16.26 respectively, representing 63% and 61.5% discount within a few months.
However the tide shifted in November with Republican's complete victory over the Presidency, House and Senate. As President Trump is expected to favor private prisons, hot money begins to flow into these two private prison stocks and both have gained over 100% since their 52 weeks low.