May. 9 at 12:08 PM
$GEO GEO owns 50K beds of which 6K are in play. Zoley craftily outlined why the 6K beds are worth more (perhaps significantly) than the
$130K per bed generated from the Lawton sale.
6K beds represents 12% of their total bed count. Using
$170K per bed as a reasonable price, would fetch GEO a cool
$1B in cash. More importantly, the market will extrapolate that the value of thier remaining 44K beds would be 44K X
$170K =
$7.5B or
$57.00 per share. Add in GEO’s subsidiaries, equipment and 18K person workforce and you can derive at a full and fair value of
$70.00 per share, easily validating Zoley’s statement regarding GEO being an attractive investment opportunity.
While political risks remain, GEO represents value in a market absent of value.
