The latest polls don’t look good. After looking like it might pass earlier in the election cycle, California’s historic Prop 19 — which would legalise Marijuana — is now trailing.
But it’s not over yet, and there are important business implications.
We’ve already told you some of the ways to make money from the coming legalization of pot (Tobacco names like RJ Reynolds would probably capitalise well).
But what if the measure goes down?
Check out Corrections Corp of America — the biggest owner of private prisons.
As Mike Riggs at The Daily Caller notes, CCA has given money to Democratic candidate Dianne Feinstein, who inexplicably and appallingly opposes Prop 19. Because the legalization of weed result in a lot fewer arrests (not just for pot, but also for real crimes that deserve incarceration), this company has a lot to lose.
Last year, hedge funder Bill Ackman presented a bull case for this company, arguing that a huge boom in this area was imminent..