MFCSF - Medical Facilities Corporation: Revisiting My 'Hold' Rating

2024-04-08 11:55:41 ET

Summary

• Medical Facilities Corporation changed its payout model from monthly to quarterly dividends, causing the author to sell their stake at a loss.
• The company has seen some recovery, but I do not believe it is worth investing in due to its sub-par dividend and lack of institutional credit rating.
• I estimate a share price of $6.50 for the company, but still does not recommend buying it.

All stated amounts are in Canadian dollars except where otherwise stated.

Dear readers,

Over 4 years ago, I sold my stake in Medical Facilities Corporation (MFCSF), a monthly (at the time) paying dividend company out of Canada. They had reported 4Q19 in my last article and changed their payout model to a quarterly, as opposed to a monthly, sort of payout model. While the company has seen significant change since in the short term, I will argue that it has not yet recovered to levels where I held it - but to be frank, I sold my relatively small stake at a loss.

Stake size doesn't matter in the context of my analysis. Whether I lose in a $1,000 or $1,000,000 position shouldn't matter to you - because any loss or any profit is equally unacceptable or great, since you as a reader may have entirely different sizing....

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