There big headlines news this week was that Michael Burry, famous for The Big Short, profiteer on the last housing crash in 2008, has sold off all his stocks and is presumably only holding GEO. According to Yahoo Finance, “The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom.“
Given the current circumstances around the world with wars, crime, climate change, unrest, migration and other mayhem it stands to reason that what we have seen in the past will only magnify as these situations intensify. While tragic and disappointing, it does present a possible investment opportunity. We took a look at GEO and were intrigued about the possibilities and may add it to our portfolio. The stock doesn’t seem to be paying a dividend which gives us pause but it has had an impressive growth streak and has recently corrected to unprecedented low levels. Michael Burry may be onto something here. Who knows, with severe labor shortages we may all become prisoners sent to work camps soon enough. We’ll monitor it. In the meantime stay tuned and stay solvent…