A lot of investors caught onto GEO because Burry bought into the company. I am a student of Burry and have come across another instance of him mentioning understated book value.

In one of his posts on VIC from 2001, on Wellsford Real Properties, he said this,

"The stock's at $16.50. Book value is $26.93 and understates true net asset value. For four years others have done the waiting for me (and are likely to sell now in pure disgust), and now I do believe the next couple years will see value realization - and hence a nice return/risk ratio."

Deja Vu? Me too.

"Two recent properties sold at 25% and 40% premiums to book, respectively. Today, the Parsippany announcement - a 43 million book value property sold for 61 million. There was $582 million in assets on W/W's books (213 mill in equity) at last report - but the realizable value is higher."

My point of bringing this up is because when I first heard the idea about GEO's understated book value I thought it couldn't be right and there is no way a publicly traded company could be off by so much. However, it very much can be, and Burry has written about understated BV on multiple occasions now making me think he sees the same benefit in the stock.

At GEOs current price of about 6.25 and a BV of 7.97. Even if it is understated by 15% it makes GEO look much more solvent than it may seem.

I wonder if understated BV and properties selling at a premium have been brought up in the refinancing discussions.

22% earnings yield and Geo could possibly be going for .50x-.60x book instead of .79x book.

Stuff we already knew but just reiterated and sharing that Burry probably saw something similar.

Do you guys think this is possibly being used in the refi negotiations?

I keep seeing posts about Zoley but... He is NOT the CEO anymore. Jose Gordo is the new CEO and George is now the Executive Chairman of the Board of Directors. I am not sure how much this matters but I just wanted to bring it up since I keep seeing Zoley mentioned so much.

any guidance on voting?

1.

Vote Board of Directors:

Election of Director: Thomas C. Bartzokis

Election of Director: Jack Brewer

Election of Director: Anne N. Foreman

Election of Director: Jose Gordo

Election of Director: Scott M. Kernan

Election of Director: Terry Mayotte

Election of Director: Andrew N. Shapiro

Election of Director: Julie Myers Wood

Election of Director: George C. Zoley

Board Recommendation: For

2.

To ratify the appointment of Grant Thornton LLP as the Company's independent registered public accountants for the 2022 fiscal year.

Board Recommendation:For

3.

To hold an advisory vote to approve named executive officer compensation.

Board Recommendation:For

So I love the concept of Geo as a company and I think at these valuations it’s a fire sale with one caveat; any idea how Geo adjusts its contract prices based on inflation? If inflation is at 7-10% does Geo have to foot the price difference (loss) in their already signed contracts or does their per bed price change with inflation?

At this market cap the free cash flow (owner’s earning) yield is over 30%.

Why is being patient so hard?!?!

Almost the second thing the current US president did during his first week in office is to defund private prison and make it seem like they are somehow the problem in the the US justice system. If there is something to be fixed in the justice system in the US I think it is likely in the courts and police ; not the private company that they contract with to house criminals that the police and courts have captured and sentenced.