Despite assurances from our politicians that crime is decreasing, America’s streets are filled with violent anarchy and street-thuggery. The bottom line (for investors) is that many people walking the streets belong in prison, and there are not enough prisons currently to hold them.
The Geo Group stock gives investors the opportunity to help fund the private prison system while making themselves a quick buck at the same time. The best thing about such a stock is it can sometimes fare very well in a poor liberal crime ridden economy, unlike just about everything else, and the worse things get, the more prisons we need and the more the stock rises. Purchasing this stock is like short-selling America, but at this point that is a sensible strategy.
It has a great dividend of over seven percent. A nice juicy dividend is normally good and keeps provides a reason to hold the stock longer term to collect them. That discourages short term investors and short-sellers, who aren’t always helpful for the share price. It has traded between $28 and $38 a share over the last few years. It is currently is nearing a point of resistence around the $38 dollar mark, which means that it is currently at the high end of its trading spectrum. Buying in at this level would be best done through dollar cost averaging. If you can wait and buy on a dip below $30 this stock appears to have a lot of support below that level.
The negatives against this stock are that private prisons have their critics, and are not popular with a large swathe of voters. When politicians such as Hilary Clinton call it out and dog it, it has a negative effect on the stock. Then again, keep in mind that its support level is around $28 at the lowest, so if you able to buy near that level and wait a few months, the public will lapse again into sweet mental oblivion and the hubbub over private prisons will fall into the memory hole. At that point, the stock will rebound. Also keep an eye on any sign of the dividend being cut, which would take the share price down.
The gangster rap record labels and NFL are making money from the gangster culture, and so should you! When you see the USA making foolish decisions that will result in social decay, put on your investor’s hat and make some easy, legal cash from the corrosion they have caused.