GEO: The 'apish' case for owning this humane stock
Okay, people, first things first: GEO has a mind-bending Short Percent of Float of 34.53%.
The Speech
When was the last time we invested in something that could truly make us smile, based on our good acts and judgement, before we go to bed each night?
As most of us already know, the U.S. faces a problem with millions of innocent people being stuck in prison. The government is now pushing hard to get people out of prison and back into the workforce. This process is humane; it truly serves as a force for good in that prisoners deemed innocent can be brought back into society expeditiously and in an equitable manner. Further, this is backed by Congress, due to upcoming changes in federal drug classification laws via a bill introduced last week called the MORE Act of 2021. Millions of prisoners will be freed. The cool news is that this whole process of actually helping people can yield a profit. Who will the federal government turn to, and could this entity become a Monopoly for this process of freeing innocent people?
Fundamentals
Enter 'GEO'. GEO aspires to be the world's leading provider of evidence-based rehabilitation across a diversified spectrum of community reentry services. GEO's mission is to develop innovative public-private partnerships, with government agencies around the globe, that deliver high quality industry leading rehabilitation and community reintegration programs to the men and women entrusted to its care. The GEO Group is the first fully integrated equity real estate investment trust (Healthcare-based REIT) that does this, and it truly serves as a force for good. Now, let's look at some of the fundamentals.
GEO has a forward P/E ratio of only 2.60. It's PEG ratio is 0.26, which takes into account the stock's expected earnings growth rate. Another notable valuation metric for GEO is its P/B ratio of 0.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. Based on these metrics and many more, GEO holds a coveted Value grade of 'A'.
GEO sticks out to me specifically, in addition to it being a 'humane' investment, but that it has a fair price around $7 that all investors can afford. The market cap is 'primed for growth, which is currently below $1B.
Additionally, GEO has established Environmental Safety Goals (ESG):
-To provide development opportunities to our workforce and to instill an organizational culture rooted in diversity, inclusion, and respect.
-To advance environmental sustainability in the construction and operation of our facilities by investing in energy conservation measures and following independent Green Building certification standards.
-To implement best practices that follow recognized global Human Rights standards and respect the dignity and basic human rights of all individuals in our care. GEOgroup.com has a ton more information.
TL;DR: GEO stock is worth owning. Millions of innocent people are stuck in prison due to minor infractions. Due to new policy proposals, millions will soon be free. GEO rehabiliates them back into society so that they can contribute, raise families, and pay taxes. GEO is actually a rare 'humane' stock based not only on ethics, but it has solid fundamentals. GEO may especially benefit from upcoming federal drug law reclassifications in the MORE act of 2021. Why GEO is so targeted by shorts (SI: 34.52%) is unknown, and brings to question the true motive of anyone with a vested interest in bringing a well-intentioned company like this down.
AI
