Undervalued and potential for a squeeze.

Submitted by Stonkstrader84 t3_yh8vtm in wallstreetbets

The Geo Group $GEO has 116.5 million shares outstanding. Of that, due to high insider and institutional holdings, only about 10 million are available for trading. 20 million shares short interest give it a 200% SI. $GME had SI of 150% at its high. Not saying my calculated setup is a guarantee for a squeeze but a good start. Daily price swings on low volume indicate that the stock is tight as hell.

Also, $GEO, while still heavily leveraged has underlying assets that give the company a fair share price of about $20, based on reproduction values of recent transactions. Not even included here is their subsidiary which is a cash machine.

It‘s basically one of a few stocks that will hold up during a recession, make their interest payments leverage less problematic relative to the increasing rates in general, and provide a big margin of safety, since the company provides enough FCF to deleverage and has enough assets to sell for deleveraging.

If you don‘t like the fact that GEO also operates correction facilities, spare me with your woke opinion, it‘s about making money.

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Humblegiant2552 t1_iucpx2h wrote

Squeezed already, people who keep posting this are in a cult

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VisualMod t1_iucjjhr wrote

>I completely agree. $GEO is a great company and a great investment. Their cash flow is very strong and their assets are very valuable. They have a lot of insider ownership and institutional ownership, which makes the stock more difficult to trade but also provides a lot of support for the stock price. I think $GEO is a great long-term investment.

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vegastrashy t1_iudcpou wrote

Maybe agree with the actual post next time? OP is promoting squeeze potential while indicating most of the stock is institutionally held. GEO had a good Friday but meh week. What OP isn’t showing, and after that post I’m glad he just quit, GEO owns a lot of its properties, a tricky valuation in declining times.

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BagholderBaggins t1_iud37bf wrote

1 in 300 die of covid nation shuts down. 1 in 300 serving time... there a stock for that. 2 million people locked up and the ones working are for pennies an hour. This isn't woke shit, it's fucked up. Puts cuz fuck this. Correctional facilities in the states are no better than re-education camps in China or gulags in Russia. Modern day slavery guys, I know Wallstreet has no place for morals but 2 million in the pen and you're going to invest in that?!

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usernamchexout t1_iuda92k wrote

> Puts cuz fuck this

Don't do that unless you actually expect it to be profitable. Buying puts purely out of spite doesn't affect the company and is a surefire way to lose money.

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vegastrashy t1_iudd375 wrote

As I understand their business, some of that is mental health incarceration. It’s necessary. Prisons are necessary. It’s the abuses associate with per body profits that need scrutiny.

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Working-Form1858 t1_iuez26a wrote

Yep because puts on profitable company that are growing is a ALWAYS a good idea.

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immortalis88 t1_iud3zw6 wrote

Very compelling. You just convinced me to buy some shares.

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telltruvision t1_iudgvnv wrote

No mention of supreme leader Burry the original buyer of GME is also in this geo now. I’m disappointed in this sub it’s gone to shit you all deserve to be a Wendy’s employee for life

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DA2710 t1_iudm3ow wrote

I don’t care what they do. But isn’t missing some fundamental elements of the thing your looking for?

Options…. Very little

Volume… not much to speak of

Cost to borrow … not significant

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Stonkstrader84 OP t1_iudrg5o wrote

It popped last year already within 2-3 days on big volume. People were all of the sudden there like out of nowhere. Don‘t know how but somehow the word spread. No idea of the magic behind it.

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bestplumper t1_iucovbk wrote

I put a bit money now 💴

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VisualMod t1_iucjj6n wrote

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>TL;DR: GEO has tight supply, high demand, low float and is heavily undervalued. We might see a squeeze to $15-20 or even higher.

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blutch14 t1_iue2893 wrote

REV had a small float as well and people where screaming it could go up big time. It just got delisted and is trading at 1 now lmao.

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SheepherderSea2775 t1_iue68rl wrote

Sounds like a pump and dump. If 10m shares are outstanding and the rest are owned by institutions. Looks like an institution is fishing for interest so one institution can dump their shares at the next possible rally.

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vegastrashy t1_iudbrnr wrote

Were you always an asshole or did it start with the last paragraph of that bullshit post?

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Stonkstrader84 OP t1_iudnmqc wrote

You think that comment boosts your ESG score?

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vegastrashy t1_iueasms wrote

Don’t care what that is. Was more interested in if you knew you were an asshole or not. I don’t like Trumptards, and I smell one.

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Stonkstrader84 OP t1_iuedusr wrote

If sharing my investment thesis makes me an asshole, guess I am one. Don‘t give two shits about Trump. And none about your opinion.

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Working-Form1858 t1_iuezjaa wrote

BAN for political bullshit.

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vegastrashy t1_iug00z3 wrote

Agreed. Ban OP for his Woke commentary. Then go fuck yourself.

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Stonkstrader84 OP t1_iuhdw3x wrote

Holy fuck you guys are probably the whiniest bunch of snowflakes this is awesome, if I had more time I would really just argue with you for fun.

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vegastrashy t1_iui48fn wrote

Classic case of, "Tell me you're a Trumptard without telling me you're a Trumptard."

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Stonkstrader84 OP t1_iui945g wrote

boohoo…please Mod…ban the bad man…he said woke and isn‘t nice to me…help Mod…img

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vegastrashy t1_iujgng1 wrote

Wasn’t the reaction you were looking for? That’d be two things you got wrong.

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