Citron Analysis, an funding analysis agency identified for locating brief alternatives, posted a tweet on Monday that it expects Geo Group Inc GEO to profit from america’ present migration challenges. The inventory traded up greater than 5% on Monday following Citron’s tweet.
What Is Geo Group? Geo Group is an organization that owns and operates non-public prisons and psychological well being services. At present, Geo owns greater than 90 services in america and a further 4 overseas, in line with the corporate’s newest investor presentation.
The Burry Connection: Michael Burry, who like Citron is thought for shorting shares, can also be lengthy Geo. Geo is considered one of Burry’s largest holdings, along with Expedia Group Inc EXPE and Generac Holdings Inc GNRC. Burry purchased 200,000 shares of Geo throughout Q2 2023, bringing his whole holdings to round 600,000 shares in line with the latest 13F filings.
Learn Additionally: ‘The Large Quick’ Investor Is Going Large Quick: Burry’s 13F Says The Bull Run Of 2023 Is Over With 40,000 Places On The SPY, QQQ
What Is SmartLINK: Citron’s funding thesis on Geo relies on the corporate’s app ‘SmartLINK’ which is utilized by the U.S. authorities to trace tons of of 1000’s of immigrants in america. It prices the federal government about $5 per day per immigrant to make use of SmartLINK to trace immigrants, considerably cheaper than different measures. The app has grown tremendously all through the previous few years, from lower than 6,000 customers in 2019 to greater than 200,000 right now.
The app permits U.S. Immigration and Customs Enforcement (ICE) officers to speak immediately with immigrants and is a part of ICE’s “Options to Detention” program.
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