Feb. 8 at 10:04 PM
$GEO Before the end of Trumps term, 1 of 2 things happen.
1) GEO bot BI in 2010 for
$425M. At the time, BI was doing ~
$60M in rev which equals a purchase price of 7X revenue. Standalone data is hard to come by but conservative estimates put BI's current revenue run rate at
$300M-
$500M. Using the same 7X multiple places a current value on BI of
$2.1B-
$3.5B. Using lower end of range (
$2B), GEO sells 49% of BI for
$1B & eliminates all their debt (cash on hand & 2+ years more of debt reduction will make up difference).
2) The Trump administration has pursued a policy of acquiring equity stakes or similar financial interests in companies as part of a national security strategy, particularly in critical sectors like semiconductors & rare earth minerals.
At maximum, a govt take over OR at minimum an equity stake. Either would vault GEO on an unprecedented run. The federal prison facilities are dilapidated and in dire need of capital & expansion. GEO represents a turn-key solution IMO.
PATIENCE
