GEO recently dropped around 25% , in my opinion mostly due to Biden statements about removing private prisons from government contracts during his term. I don't believe this will actually happen , especially taking into account the current divided government in the US (harder for Biden to pass bills).
What stands out to me with GEO is that it only recently underwent a pretty substantial news based drop and is trading at what I believe to be a discount (current P/E also less than share price). More importantly , after pretty much every election this stock rallies over 100% , I encourage you all to go back on trading view to see this for yourself . I believe we will see a similar 100% + rally with GEO in the next 4-6 months .
In addition to that , they also pay a 16% dividend and I like their revenue/income trends . They do have some slightly higher comparative debt/equity figures but due to the nature of their business model, they have the benefit of consistent income sources and will have no issues paying debt .
The one Analyst 12 month target available is $15 . I see greater upside, personally .
I have marked the chart with the prior 3 elections to demonstrate that GEO typically undergoes a rally post election.
Good luck ~
What stands out to me with GEO is that it only recently underwent a pretty substantial news based drop and is trading at what I believe to be a discount (current P/E also less than share price). More importantly , after pretty much every election this stock rallies over 100% , I encourage you all to go back on trading view to see this for yourself . I believe we will see a similar 100% + rally with GEO in the next 4-6 months .
In addition to that , they also pay a 16% dividend and I like their revenue/income trends . They do have some slightly higher comparative debt/equity figures but due to the nature of their business model, they have the benefit of consistent income sources and will have no issues paying debt .
The one Analyst 12 month target available is $15 . I see greater upside, personally .
I have marked the chart with the prior 3 elections to demonstrate that GEO typically undergoes a rally post election.
Good luck ~
Trade closed: stop reached
Stopped out today . I am going to watch this one from the sidelines for now ... maybe if it drops to a new low and consolidates ill re-enter , but for now i'll play it safe . Lots of other opportunities .Note
When this idea was published, I was hoping that democrats would not win majority of senate, but they did , Today Biden announced/(reminded us) they will not renew private prison contracts, now they have a little more power to see the bills through though . Although GEO has diversified fairly well, is not completely dependent on its prisons alone and has contracts that extend past even a two term Biden presidency.... I still would like to research who is better positioned for a loss of prison related income going forward. My initial research shows me that it seems to be CXW, which is a similar company and competition to GEO. If I find that CXW is better positioned for a loss of prison revenue and is indeed less dependent on these contracts than I may consider a hedge trade on the two CXW/GEO. I am going to research this more and provide an update later or perhaps a new idea if I decide to give the trade a shot .
艾力克~
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
艾力克~
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.