GEO Group Stock Analysis

Business Description:

• As of 1Q21 (March 2021)

Catalysts:

• Moat with a single large competitor, CoreCivic (CXW)

• Southern Border Crisis with increased apprehensions from ICE (under Department of Homeland Security - not affected by Executive Order)

• Heavily shorted with 21% of shares outstanding short

Risks:

• President Joe Biden issued an Executive Order, preventing the DOJ to renew its contracts with private prisons (Negatively affects revenues from BOP and USMS)

• Negative public view

• Private Prison population in decline

• Banks unwilling to loan money to private prisons

• Refinancing huge debt might be difficult

• Cut dividends and might lose REIT status

• Political risk

Financial Analysis:

Continue to the Full Analysis: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/35735563