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No. of Recommendations: 1
S&P updated the long-term credit rating of GEO today. From Fidelity:
05/25/2021 9:30 AM EDT
S&P RATING DOWNGRADE
DOWNGRADED TO CCC ON 05/25/21

03/24/2021 10:30 AM EDT
S&P RATING DOWNGRADE
DOWNGRADED TO B- ON 03/24/21

The agency is anticipating a debt transaction or a default or something else adverse. (GEO hired "advisors" recently given its liquidity issues.) We'll see what happens. GEO may be a value trap... or quite the steal, on debt and/or equity. The 6's of 2026 are approaching 19% YTM and selling at 60% of face!
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No. of Recommendations: 1
Here is the latest SA article from a writer that's been very pro-GEO, both in terms of common stock and bonds. The article was published PRIOR to the most recent executive order from the new administration. Now that the EO is out, there is a lot of lively discussion in the comments:
https://seekingalpha.com/article/4399997-geo-group-this-11-y...

Worth having another look at this issuer in light of recent news and price drop across all of its bond chunks outstanding! May or may not be a good entry point.
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No. of Recommendations: 0
GEO Group's long-term common holders are not happy. Esp. those that opened or added to their positions between 2017 and 2019. But I think there is still value in bonds and may be in the common too at these levels ($5.60/share). The 6's of 2026 are selling with YTM of 15%+ right now. Something to think about. I'm sure one of the biggest issues for GEO is how to navigate the executive order and what the business will look like if leases are not renewed.

FWIW, I closed part of my small bond position after really nice gains to use proceeds elsewhere.
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No. of Recommendations: 1
S&P updated the long-term credit rating of GEO today. From Fidelity:
05/25/2021 9:30 AM EDT
S&P RATING DOWNGRADE
DOWNGRADED TO CCC ON 05/25/21

03/24/2021 10:30 AM EDT
S&P RATING DOWNGRADE
DOWNGRADED TO B- ON 03/24/21

The agency is anticipating a debt transaction or a default or something else adverse. (GEO hired "advisors" recently given its liquidity issues.) We'll see what happens. GEO may be a value trap... or quite the steal, on debt and/or equity. The 6's of 2026 are approaching 19% YTM and selling at 60% of face!
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