People keep asking why Burry invested 35% of his portfolio in private prison operator $GEO

Prisons are one of the greatest real estate opportunities in today's market & $GEO has a monopoly on them all

Pair that w/ immigrant trackers, they print pure cash

Here's how 👇👇👇

First let's dig into the current valuation of $GEO

At a share price of $9.51, $GEO has:

Market cap - $1.1B
Debt - $2.5B
Cash - $91M

Giving the company an enterprise value of $3.0 billion, You're pretty much buying $GEO for $3B

& $3B is cheap for a prison. Why? Because of all the real estate $GEO owns

They own hundreds of prisons in the United States totaling 56,200 owned beds

These prisons are held on the balance sheet w/ a historical cost of $2.3 billion, but they're worth much much more than that

The cost to replace and rebuild prisons has only gone up & with inflation these costs continue to increase

Private buyers of prisons value the real estate on a per bed basis

Prisons sell from anywhere from $100K/bed to over $350K/bed