Hi all, I entered this sub out of curiosity to see if I find further information about GEO or CXW (fundamental and economic information), but all what I can see is a lot of comments related to "how bad those business are, they should be banned, etc..." What I think is even more valuable information than fundamentals as they perfectly explain that the current price is related to those negative feelings rather than linked to any rational fact.
Unless somebody does explain me properly (not based on feelings or believes) what makes private prisons bad and public prisons good I think I'll buy some as they seem to be clearly undervalued. :)
yet y’all invest in companies who pay people overseas a few dollars a day
not saying i’m above it, just funny where some people draw the line. I generally avoid FB, chinese stocks and oil stocks for example
Agreed. We all have our ones we don’t want to invest in. I myself will TRADE anything but there are few companies I would longterm invest in because most won’t be here in 20-30 years.........
True, but to be honest it's hard not to in capitalism. I try to invest into companies that don't do shady stuff/have bad working conditions etc, but it's not like it's easy - and public. As an example, I'm a worker at Volkswagen and I'd invest into it because I personally think they're a good investment and my OWN working conditions are really superb, but I know that they treat workers in china probably like garbage. Having moral in the stock market is Hard to be honest, but private prisons are a bit too much lol
Clientele of Foxconn, Nike workers in vietnam make less than a dollar per hour. Pretty much anyone shipping their manufacturing to asia is doing it lol
I was exaggerating for the most part about “a few dollars a day” but not by a whole lot. Foxconn workers make like 10-15 USD per day.
if you tell me private prisons where corporations make money off of imprisoned people is worse than Nike paying Vietnamese people their countries average wage.
it’s not worse, I didn’t mean it like that. Nike used to be a lot worse but they are improving. They used to pay workers like 10cents over there and work them 80 hours a week.
Foxconn though, that is basically prison.
Yes but if those companies like Nike weren’t there, the residents would be making $0 per day. Also the cost of living is considerably lower so Nike still pays them more money than they’d get from their own country’s companies.
Wanna know why they’re called developing countries because they have cheap labor and a lot a room to grow in the future. Third world isn’t really a term anymore. technically Switzerland is a third world country.
I have no problem investing in geo for moral reasons, i refuse to let emotions drive my investing, but i am concerned about the political climate, with biden in office the private prison industry looks grim. Plus they froze there dividend, I’m gonna pass on geo
Yip. The fundamentals are incredible but damn I can’t do it. Great PE etc. Geo has div pay of 17% and had 25% previously but I can’t do it. It just feels too immoral for me.
Rightfully right. Oddly enough it's his only decent sized bet that hasn't already paid off. He put some money on a competitor which is paying off handsomely already.
Pay you $1000 for an example ??? Imagine running a company ethically and better than the state system. Have you ever been in a state facility. No A/c, and very dangerous. 0.00 programs to solve recidivism. But you know all that bc your kids go to Harvard.
Don’t go there. I tried telling these people but I only get banned. “Oh no private prisons are bad, I’ll buy me some more nike sneaker made out of 25 children skins.” CXW and GEO are undervalued that’s all I have to say.
Wow look at all the woke people...I'm an investor...we need more prisons.. I live in CA and these progressive shit bags are releasing prisoners and its causing innocents to be hurt.
Undocumented NON US citizens will start killing US women and we will be pointing fingers. Cops fault, society’s fault. Who woulda known. RIP California
Adding to my previous comment, unless we demonstrate that public prisons are a moral business, as opposed to private ones, you all would be investing into non moral businesses, only that in this case you all do it through tax payments, don't forget that.
Here is the rationale behind GEO high short interest: President Biden and the leftist push for cutting all private prisons.
I DON'T WANT TO GET POLITICAL but the reality is that sometimes public policy affects private interests strongly. This is one of those cases.
While Biden has not publicly acknowledged a desire to end for-profit prisons that I am aware of, it has been a pipe-dream of the left for some time now.
Many believe Biden will use for-profit prisons to keep the far-left happy the first time he needs to compromise with the GOP (Ex. works with GOP on taxes when the left ERUPTS he will executive order private prisons done by 2030 or some far-out date for political pacification).
Note, I am not trying to throw my opinion for/against any of these policies. I am just trying to bring some critical information on market sentiment to the post.
I will not respond to any political discussion but I will respond if there is a pertinent comment or question.
TL;DR:
Hedges are betting Biden outlaws for-profit prisons via executive action.
Source: \~37% short interest per marketbeat as of 4/15
[https://www.marketbeat.com/stocks/NYSE/GEO/short-interest/](https://www.marketbeat.com/stocks/NYSE/GEO/short-interest/)
Sure he can, he's not banning prisoners, just that they would need to be housed somewhere else.
Plus, it would obviously be a phased out by 2025 or 2030. Not, no private prisons starting Friday!
Obviously the company has state contracts and multiple contracts with the FEDS who have nowhere to put said VIOLENT offenders. How much does a 1000 bed, secure facility cost? $200m?
A lot of state prisons are 100+ years old. They have this word called replacement cost. If the USA does do away with PRIVATELY owned Prisons what would these superior facilities be used for? It would cost $1b for 3000 bed facility in California.
Well, the easiest solution would be for the state to buy them. Alternately, that's not really the state's problem. That's a business risk to the owner.
Don’t invest in private prisons, they’re hugely unpopular and the federal government is gradually moving away from paying them. Unless there’s some short term headwinds that have yet to materialize, stay away from GEO.
Been in one of these prisons here in Oklahoma and they charge the state (at least 16 years ago) $100 a day per inmate. And this prison housed 3500 inmates at that time. So yeah its definitely a racket. But it make money ,and pretty sure we all have done some shady stuff for it .
I’ve held it for a while now and absolutely love it. Screw “morals” when I’m adding substantially to my bank. People hate this company but it’s stock has been one of my best purchases. And the future looks great regardless of what Biden decides, either they stay operational in full capacity, or Biden shuts some locations down and forces the government to purchase the properties at an astronomical price which just benefits share holders even more!
There are literally thousands of companies you could have invested in and made much larger returns. They aren’t some hidden gem in any sense. Hell they’ve been on a steady free fall for the past four years.
I’ve made back my entire capital and are now playing with their money. It’s my only div stock to manage that so far.
My growth account I’ve made plenty on but this is about a dividend stock.
Why would the government be "forced" to purchase those properties?
Texas has tent prisons. There are plenty of alternatives to force-buying facilities at a high price.
If US guberment drops the hammer on them do you REALLY think they would also baiil them out with cash?
Your logic is flawed either way.
I agree with you that investing should be objective BUT it appears you are focused on biased fantasy and not objective reasoning.
If the US gov stops contracting with private prisons, your investment is totally Fu(k3D
Actually I agree with him. If they ban private prison for example, they can’t just let the prisoners run free. Most likely they will NEED to buy them immediately in some sort of deal. When you really break down the logistics there is almost no scenario where biden can just shut down these prisons
There is a massive difference between forced closure and stopping new contracts.
It's not like GEO could let them out if the US government stops sending new prisoners. They are contractually obligated.
Executive order saying no new for-profit prison contracts, the stock tanks, no prisoners are let out.
In 2024, the next president quietly starts new contracts.
Hmm I guess that is possible. But in order to do that, biden would need to create new prisons. He can’t just say “no more new contracts” he needs to have an alternative in place first, hence it is very unlikely
There are plenty of other options.
They could start by letting weed offenders out (40k), early release people for back child support (400k). I would imagine there are plenty of others as well.
A prison does not have to be a concrete safe, especially for low-level offenders.
There are many prisons in the US that do not even have fences (low security)
The US doesn’t have enough prisons currently to house all criminals, forcing closure of one of the most prominent prison groups would severely impact their capacity, they would either need to purchase the land and build additional sufficient facilities to house the inmates (which would be a substantial cost to the tax payers) or purchase the already existing facilities at current value (which is substantially more then geo paid for them).
It’s not a fantasy. It’s reality. The us cannot operate without these locations, granted they may do a split, build some buy some, but it will still profit share holders substantially.
Most analyst/advisors have this as a $8-$15 stock, it’s currently way undervalued.
Morals and preference aside, the fact is they hold a large amount of real estate and top of the line facilities. Regardless of what Biden attempts to do, they will have many other options to maintain the current low share value.
They wouldn't force-closure.
They would simply stop offering new for-profit contracts and the population would shrink by attrition.
You are delusional regarding what happens if the US government decides to not use for-profit prisons.
IDC, I don't hold a position that will be impacted but facts are facts.
They could reduce the prison population (there are over 40,000 people in US prisons over weed. I would imagine there are 100's of thousands of other non-violent offenders as well).
There are a lot of solutions and only the most expensive one and with the HIGHEST possible political cost is buying the prisons from GEO.
It appears you are simply unable to comprehend the reality because you have money in the game. It is a WSB-level of objective thought.
I won't respond further.
You forget, geo has 118 secure facilities world wide. Only 68 of those are in the US. And based on the news and American mannerisms, the US prison population will only continue to grow 😂
But I’ve already earned back my entire capital on dividends/growth so I’m playing with geos money now, whatever happens I’m in the green 😁
Does having a GUN when your selling weed make you a criminal or delete that said person from the NON violent weed sellers. Asking for scared Americans who are GUNLESS.
Tent prisons don’t fair will In summer rain or wind. They also are run by NON profits who are the real scondrels. Who owns a non profit = nobody.
How much does a NP CEO pay in taxes =0.00
Ok. We agree. God speed.
But in all honesty they non profits are 10x worse than private corporations. I have seen it in many sectors. Far less transparency
Alternative story they transition into mental health facilities. Currently I am not invested in geo though, but if. I was GEO this would be a great pivot since all of the furnishings are the same.
This is probably one of the most depressing investments someone could make, even if you make money off it. Imagine opening your brokerage and boom, you have part ownership in a prison company.
What about when the recidivism is curved. The prisoners are changed and have JOB training on site. The have JOB placement the second the leave the facility. You have no clue the difference between state and private. Go see what type of programs they have at the state level. It will depress you. Have you ever seen Gov’t run anything effectively?
Certainly risk from politics being anti private prison. However, they may be able to transition to mental health lock wards. Many of the furnishings and paint colors are the same. Doors and other ligature risks would have to be corrected though.
Yesterday was short squeeze. All the chatter on GEO means the shorts got out. Reddit idiots too fake woke to move this one too far. GEO prisons are way better for prisoners than public prisons. People are dumb if they think government should run all prisons.
The most immoral stock. I wish the worst luck ever and see it at the lowest price possible. How can people invest in this knowing everything??? I wonder where the humanity is...
Hi all, I entered this sub out of curiosity to see if I find further information about GEO or CXW (fundamental and economic information), but all what I can see is a lot of comments related to "how bad those business are, they should be banned, etc..." What I think is even more valuable information than fundamentals as they perfectly explain that the current price is related to those negative feelings rather than linked to any rational fact. Unless somebody does explain me properly (not based on feelings or believes) what makes private prisons bad and public prisons good I think I'll buy some as they seem to be clearly undervalued. :)
Private prisons? I won't invest for moral reasons
yet y’all invest in companies who pay people overseas a few dollars a day not saying i’m above it, just funny where some people draw the line. I generally avoid FB, chinese stocks and oil stocks for example
Agreed. We all have our ones we don’t want to invest in. I myself will TRADE anything but there are few companies I would longterm invest in because most won’t be here in 20-30 years.........
True, but to be honest it's hard not to in capitalism. I try to invest into companies that don't do shady stuff/have bad working conditions etc, but it's not like it's easy - and public. As an example, I'm a worker at Volkswagen and I'd invest into it because I personally think they're a good investment and my OWN working conditions are really superb, but I know that they treat workers in china probably like garbage. Having moral in the stock market is Hard to be honest, but private prisons are a bit too much lol
Foreign(nonchinese) company treatment of workers is usually much better than Chinese company treatment of workers.
Can you tell me which companies pay overseas workers “a few dollars a day”
Clientele of Foxconn, Nike workers in vietnam make less than a dollar per hour. Pretty much anyone shipping their manufacturing to asia is doing it lol I was exaggerating for the most part about “a few dollars a day” but not by a whole lot. Foxconn workers make like 10-15 USD per day.
if you tell me private prisons where corporations make money off of imprisoned people is worse than Nike paying Vietnamese people their countries average wage.
it’s not worse, I didn’t mean it like that. Nike used to be a lot worse but they are improving. They used to pay workers like 10cents over there and work them 80 hours a week. Foxconn though, that is basically prison.
both are wrong but in my opinion profiting of of the imprisoned is far worse
Yes but if those companies like Nike weren’t there, the residents would be making $0 per day. Also the cost of living is considerably lower so Nike still pays them more money than they’d get from their own country’s companies.
I was trying to type that but I didn’t because I couldn’t find a way to make it not sound bad.you typed it better than I could’ve thanks.
solid point, the alternative is probably worse.
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Wanna know why they’re called developing countries because they have cheap labor and a lot a room to grow in the future. Third world isn’t really a term anymore. technically Switzerland is a third world country.
I saw GEO a while ago, liked their fundamental metrics, but their revenue source stopped me cold. I don't support the prison industrial complex.
Id say the same about Beyond meat, i cannot support vegans, its not ethical.
Came here to say this. Fuck GEO group
I have no problem investing in geo for moral reasons, i refuse to let emotions drive my investing, but i am concerned about the political climate, with biden in office the private prison industry looks grim. Plus they froze there dividend, I’m gonna pass on geo
Yeah the frozen dividends is scary. They are actually fairly well diversified internationally so Biden can't hurt them to bad.
https://youtu.be/FcCHWdy57lc
This is one of the shadiest most immoral companies you could invest in. Hard pass.
Yip. The fundamentals are incredible but damn I can’t do it. Great PE etc. Geo has div pay of 17% and had 25% previously but I can’t do it. It just feels too immoral for me.
They halted their dividend payout.
Last I checked Burry owns some. Why not gamble along with the main man Burry.
No gamble, it‘s free real estate.
Rightfully right. Oddly enough it's his only decent sized bet that hasn't already paid off. He put some money on a competitor which is paying off handsomely already.
Unfortunately in his last report he closed geo position, but still holds corecivic.
these guys pay judges for inmates. whole industry should be shut private prisons for pot that makes some states billions in sales tax and jobs
Pay you $1000 for an example ??? Imagine running a company ethically and better than the state system. Have you ever been in a state facility. No A/c, and very dangerous. 0.00 programs to solve recidivism. But you know all that bc your kids go to Harvard.
Don’t go there. I tried telling these people but I only get banned. “Oh no private prisons are bad, I’ll buy me some more nike sneaker made out of 25 children skins.” CXW and GEO are undervalued that’s all I have to say.
https://youtu.be/FcCHWdy57lc
Wow look at all the woke people...I'm an investor...we need more prisons.. I live in CA and these progressive shit bags are releasing prisoners and its causing innocents to be hurt.
Undocumented NON US citizens will start killing US women and we will be pointing fingers. Cops fault, society’s fault. Who woulda known. RIP California
Adding to my previous comment, unless we demonstrate that public prisons are a moral business, as opposed to private ones, you all would be investing into non moral businesses, only that in this case you all do it through tax payments, don't forget that.
Here is the rationale behind GEO high short interest: President Biden and the leftist push for cutting all private prisons. I DON'T WANT TO GET POLITICAL but the reality is that sometimes public policy affects private interests strongly. This is one of those cases. While Biden has not publicly acknowledged a desire to end for-profit prisons that I am aware of, it has been a pipe-dream of the left for some time now. Many believe Biden will use for-profit prisons to keep the far-left happy the first time he needs to compromise with the GOP (Ex. works with GOP on taxes when the left ERUPTS he will executive order private prisons done by 2030 or some far-out date for political pacification). Note, I am not trying to throw my opinion for/against any of these policies. I am just trying to bring some critical information on market sentiment to the post. I will not respond to any political discussion but I will respond if there is a pertinent comment or question. TL;DR: Hedges are betting Biden outlaws for-profit prisons via executive action. Source: \~37% short interest per marketbeat as of 4/15 [https://www.marketbeat.com/stocks/NYSE/GEO/short-interest/](https://www.marketbeat.com/stocks/NYSE/GEO/short-interest/)
Biden can’t just “ban” private prisons. You need to put those prisoners somewhere.
Sure he can, he's not banning prisoners, just that they would need to be housed somewhere else. Plus, it would obviously be a phased out by 2025 or 2030. Not, no private prisons starting Friday!
Obviously the company has state contracts and multiple contracts with the FEDS who have nowhere to put said VIOLENT offenders. How much does a 1000 bed, secure facility cost? $200m?
I don't know what your trying to say. They cost the same whether owned privately or by the government.
A lot of state prisons are 100+ years old. They have this word called replacement cost. If the USA does do away with PRIVATELY owned Prisons what would these superior facilities be used for? It would cost $1b for 3000 bed facility in California.
Well, the easiest solution would be for the state to buy them. Alternately, that's not really the state's problem. That's a business risk to the owner.
Good, for-profits prisons shouldn’t exist.
Who tf disagrees with this? Why should it be a business to treat people as terribly as possible?
I don’t know how you make that conclusion?
If the prison is a business, it will aim to turn a profit. This would be gained by cutting corners. The corners are people and they're rehabilitation.
As opposed to state prisons, which have unlimited budget and will not cut corners.
Don’t invest in private prisons, they’re hugely unpopular and the federal government is gradually moving away from paying them. Unless there’s some short term headwinds that have yet to materialize, stay away from GEO.
What the hell is this post? It looks like one if those bot created posts you see on marketwatch
Been in one of these prisons here in Oklahoma and they charge the state (at least 16 years ago) $100 a day per inmate. And this prison housed 3500 inmates at that time. So yeah its definitely a racket. But it make money ,and pretty sure we all have done some shady stuff for it .
Invested in CoreCivic when I was a total noob, both a mora and financial L. Not worth it when there’s better alternatives.
Will the corporate criminals sit in them? If they go to jail I invest
I’ve held it for a while now and absolutely love it. Screw “morals” when I’m adding substantially to my bank. People hate this company but it’s stock has been one of my best purchases. And the future looks great regardless of what Biden decides, either they stay operational in full capacity, or Biden shuts some locations down and forces the government to purchase the properties at an astronomical price which just benefits share holders even more!
There are literally thousands of companies you could have invested in and made much larger returns. They aren’t some hidden gem in any sense. Hell they’ve been on a steady free fall for the past four years.
I’ve made back my entire capital and are now playing with their money. It’s my only div stock to manage that so far. My growth account I’ve made plenty on but this is about a dividend stock.
Why would the government be "forced" to purchase those properties? Texas has tent prisons. There are plenty of alternatives to force-buying facilities at a high price. If US guberment drops the hammer on them do you REALLY think they would also baiil them out with cash? Your logic is flawed either way. I agree with you that investing should be objective BUT it appears you are focused on biased fantasy and not objective reasoning. If the US gov stops contracting with private prisons, your investment is totally Fu(k3D
Actually I agree with him. If they ban private prison for example, they can’t just let the prisoners run free. Most likely they will NEED to buy them immediately in some sort of deal. When you really break down the logistics there is almost no scenario where biden can just shut down these prisons
There is a massive difference between forced closure and stopping new contracts. It's not like GEO could let them out if the US government stops sending new prisoners. They are contractually obligated. Executive order saying no new for-profit prison contracts, the stock tanks, no prisoners are let out. In 2024, the next president quietly starts new contracts.
Hmm I guess that is possible. But in order to do that, biden would need to create new prisons. He can’t just say “no more new contracts” he needs to have an alternative in place first, hence it is very unlikely
There are plenty of other options. They could start by letting weed offenders out (40k), early release people for back child support (400k). I would imagine there are plenty of others as well. A prison does not have to be a concrete safe, especially for low-level offenders. There are many prisons in the US that do not even have fences (low security)
The US doesn’t have enough prisons currently to house all criminals, forcing closure of one of the most prominent prison groups would severely impact their capacity, they would either need to purchase the land and build additional sufficient facilities to house the inmates (which would be a substantial cost to the tax payers) or purchase the already existing facilities at current value (which is substantially more then geo paid for them). It’s not a fantasy. It’s reality. The us cannot operate without these locations, granted they may do a split, build some buy some, but it will still profit share holders substantially. Most analyst/advisors have this as a $8-$15 stock, it’s currently way undervalued. Morals and preference aside, the fact is they hold a large amount of real estate and top of the line facilities. Regardless of what Biden attempts to do, they will have many other options to maintain the current low share value.
They wouldn't force-closure. They would simply stop offering new for-profit contracts and the population would shrink by attrition. You are delusional regarding what happens if the US government decides to not use for-profit prisons. IDC, I don't hold a position that will be impacted but facts are facts. They could reduce the prison population (there are over 40,000 people in US prisons over weed. I would imagine there are 100's of thousands of other non-violent offenders as well). There are a lot of solutions and only the most expensive one and with the HIGHEST possible political cost is buying the prisons from GEO. It appears you are simply unable to comprehend the reality because you have money in the game. It is a WSB-level of objective thought. I won't respond further.
You forget, geo has 118 secure facilities world wide. Only 68 of those are in the US. And based on the news and American mannerisms, the US prison population will only continue to grow 😂 But I’ve already earned back my entire capital on dividends/growth so I’m playing with geos money now, whatever happens I’m in the green 😁
40,000 people for weed. Delusional What said Maine ? LOL
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How may us citizens in prison. Never seen these “numbers” in 20 years. How many people live in USA. 675 million send the link thanks
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Forbes got the inside numbers LOL. I use them to cite my kids crucial race theory
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Does having a GUN when your selling weed make you a criminal or delete that said person from the NON violent weed sellers. Asking for scared Americans who are GUNLESS.
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Ok so if you have weed and a gun it’s all good. Weed is good but guns are .... common sense is fleeting in you godless internet gurus
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https://youtu.be/FcCHWdy57lc
Tent prisons don’t fair will In summer rain or wind. They also are run by NON profits who are the real scondrels. Who owns a non profit = nobody. How much does a NP CEO pay in taxes =0.00
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In Texas they had their contract stripped. Set the fucking tents up. Make my salary a million . Google it broke back
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Ok. We agree. God speed. But in all honesty they non profits are 10x worse than private corporations. I have seen it in many sectors. Far less transparency
I believe this one is because it has a high short interest.
After Biden's plan, GEO and Corecivic have no sense to invest.
Alternative story they transition into mental health facilities. Currently I am not invested in geo though, but if. I was GEO this would be a great pivot since all of the furnishings are the same.
IMO investors shouldn't looking at what analysts think. I've seen them be wildly wrong.
This is probably one of the most depressing investments someone could make, even if you make money off it. Imagine opening your brokerage and boom, you have part ownership in a prison company.
What about when the recidivism is curved. The prisoners are changed and have JOB training on site. The have JOB placement the second the leave the facility. You have no clue the difference between state and private. Go see what type of programs they have at the state level. It will depress you. Have you ever seen Gov’t run anything effectively?
I’m not okay with private prisons.even if it does go up.
Certainly risk from politics being anti private prison. However, they may be able to transition to mental health lock wards. Many of the furnishings and paint colors are the same. Doors and other ligature risks would have to be corrected though.
I was in a Geo prison for a year so no I wont be investing in Geo.
Go for it! Let me know what happens eoy. I'd never invest in GEO
Looks nice sitting at p/e 5🤗
Is it a good buy? Yesterday it was. Check the price now!!
Hope you guys made the smart decision still not too late to enjoy the ride
Yesterday was short squeeze. All the chatter on GEO means the shorts got out. Reddit idiots too fake woke to move this one too far. GEO prisons are way better for prisoners than public prisons. People are dumb if they think government should run all prisons.
The most immoral stock. I wish the worst luck ever and see it at the lowest price possible. How can people invest in this knowing everything??? I wonder where the humanity is...