America has 5% of the planet's population, but 25% of its prisoners. This should be good news for the private prisons that absorb the spillover from our congested federal and state penitentiaries, but, alas, the recession has ruffled the economics even of law and order. Cash-strapped states seeking to cut the cost of housing inmates are mulling drastic measures, ranging from quicker paroles to earlier releases. Not only have the headlines alarmed some citizens, they have frightened investors as well. As a result, private-prison stocks are selling at unusual -- and untenable -- discounts. The three biggest companies are Corrections Corp. of America (CXW), which controls 39% of private-prison beds, Geo Group (GEO), which runs 25%, and Cornell (CRN), with 10%. While their stocks have rebounded this year, they still trade at 12 to 18 times what each is expected to earn in 2010 -- compared with multiples pushing 30 before the budget crisis.

P/E of 12

Meets/exceeds my earnings, balance sheet, and cash flow criteria(s).

Corrections Corp. (ticker: CXW), for example, at its recent price around $25, was trading at about 24 times its estimated earnings for this year of $1.04 a share, well above the 20.5 of the S&P 500. The company's earnings, however, look to be growing around 20% annually, helping to justify the price. If the shares keep their current P/E, the price could jump to $30.

Private prison operator...benefites from the over population of US jails

Growth Not leveraged to the subprime.....etc
Average : 28

with the rise in crime and the over crowding of jails , correction corp. will benifit from this.

Making money off the guys who stole your car, smoked a rock and squeezed your wife's ass at the 7-11. And they pay the help jack-shit to guard these degenerates! Criminal behavior in America is a bottomless pit. The exploiter calls it "Manna from Heaven off Willie and Bubba".

Good Chart

crime

I don't think the dems are big into private prisons. I hear these things cost more money than gov. operate facilities