Locking Your Cash in Prison Stocks

Friday, 18 Jul 2008 | 7:04 AM ET

Prison stocks and waste management companies are the best places to lock cash in these turbulent times, due to their highly defensive value, Richard Wilson, fund manager at Threadneedle Asset Management told "Squawk Box Europe."

Wilson sees comfort and value in US prison stocks, like Corrections Corp. , which owns and operates prison correctional facilities in the US.

Lock Your Cash into Prison Stocks
During these turbulent times, investors find unusual stocks to get value. Richard Winsor from Threadneedle Asset Management likes prison stocks and waste management companies.

Waste disposal companies are also good to buy, as there have been two interesting bids in the waste disposal arena in the US in the last month, he said.

Republic Services initially bid for Allied Waste , then Waste Management , one of the biggest waste disposal companies, made a bid for Republic.

People are attracted by the stability of the cash flows, the M&A activity and the good investment prospects, Wilson told CNBC.

"Anything really with relatively stable cash flows," he said, adding that another 'safe' sector is tobacco.


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