The United States House of Representatives approved a $92 billion bill mandating GPS tracking for non-detained aliens. This move could spike Michael Burry‘s $5 million bet on Geo Group Inc (NYSE: GEO), a dominant GPS tracking device company.
As reported by the “Michael Burry Stock Tracker” account on X (Twitter) on November 1, the bill approval is bullish news for the GPS tracking sector. Notably, the Geo Group controls 87% of this sector and will absorb the largest share of the U.S. government’s new expenses.
Notably, non-detained aliens, individuals in the U.S. without documentation but not in custody, will now require mandatory GPS tracking, which will be purchased within the pre-approved budget of $92 billion.
Moreover, the bill comes amid a surge in illegal immigration in the country. In this context, the well-known short-seller and editor of Citron Research, Andrew Left, shows a bullish bias towards GEO.
Michael Burry is another relevant financial personality who bets on an increased performance for the GPS-leading company. Burry reportedly holds a $5 million position in GEO stocks.
GEO stocks price analysis
Meanwhile, GEO stocks are already trading above a previously strong price resistance tested in both May and October 2023. This is the stock market signaling another bullish bias toward the GPS company.
At the time of publication, GEO was changing hands at $8.97 per share. Notably, the mentioned resistance was at $8.88 per share, and it could be tested as a support in the following days before continuation.
Nevertheless, the new bill rises amid controversy on the humanitarian spectrum. A report covered by The Guardian in 2022 pointed to GPS tagging immigrants as an act of “psychological torture,” which violates privacy rights.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.