2024-05-05 11:30:00 ET
Summary
- Medical Properties Trust stock saw a significant recovery in April, stunning the short sellers.
- Several positive catalysts drove the recovery, providing some respite for MPW stock investors.
- I discuss why these short-term solutions aren't enough to resolve the structural overhang over MPW stock.
- Notwithstanding the recent outperformance, MPW investors must be judicious about trying to chase further upside.
- I explain why watching the drama unfolding from the sidelines is wise.
Medical Properties Trust's Much-Needed Respite
Hospital REIT operator Medical Properties Trust, Inc. ( MPW ) received a much-needed respite in April 2024 as MPW continued the recovery from its January 2024 lows. As a result, it has lifted the buying momentum for MPW investors, suggesting short-sellers have taken a further hit. The potential for upside/downside volatility attributed to short-sellers is expected to persist, with MPW's short-interest rati o of more than 37% as of mid-April. Therefore, I assessed that bearish investors shorting a highly undervalued MPW stock haven't given up, believing the recent recovery isn't sustainable. My previous MPW article in February suggests the possibility of a value trap unless high-conviction investors have confidence that MPW's $2B liquidity plan could work out....
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Medical Properties Trust: Don't Celebrate Too Early