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The GEO Group, Inc. Message Board

  • please_be_civil please_be_civil May 19, 2000 11:22 AM Flag

    Quicken Evaluator Shows

    that the valuation of this stock seems insanely
    low. I understand that they have had problems at a few
    facilities and that they have reacted with what seems to be
    a good plan to address these issues at the top
    level, and by openly admitting there are problems. But
    considering the number of new facilities they are working on
    and the current numbers it is almost unbeleiveable
    that the stock has been pounded so bad.

    market cap for this stock is now down to $143 million.
    Nearly equivalent to it's total assets. It has a P/E of
    6.7 compared to an average in the industry of 28.6,
    in the sector of 73.5 and the S&P of 29.

    As I
    said, I understand that there has been some bad news.
    But they are adding more facilities which means even
    more revenue, and their current revenues are already
    at record-breaking levels. What is to stop the
    insiders or the company from simply buying back this stock
    and taking it private? At these prices I think this
    is a real possibility. Any thoughts?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I am buying at this level. I think that the
      market has oversold this company based on the negative
      public scrutiny. With such a strong balance sheet, the
      company can learn from its errors, and ensure proper
      administration at its facilities. Insurance will cover most of
      the legal costs from the lawsuits.

      Good luck
      to WHC longs!


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