Stock to Sell #3 – Corrections Corporation of America (CXW)
Corrections Corporation of America (CXW) is a REIT that owns and operates correctional and detention facilities and prisons in the U.S. It recently lost contracts for facilities in Texas and Mississippi, and that could have a negative impact on earnings and puts its $1.92 dividend (6% yield) at risk.
The stock fell from a high of $39.90 in May to just above its 200-day moving average at $30.95 in only seven weeks. It has closed below its bullish support line and threatens to break lower under the pressure of steady selling. Sell this high-yielder if it closes under the 200-day moving average since there is little support below that important line.