2024-03-08 18:07:20 ET
Summary
- Medical Properties Trust has experienced a solid price advance since January on lighter-than-expected volume. Shorts may be rethinking their positions.
- The company's business model remains diversified with over 400 hospitals owned worldwide, making it less susceptible to recession damage.
- MPW is clearly undervalued on price to sales and book value, with a high dividend yield of 13%, making it an attractive long-term investment.
- Any good news from the company or decision by short sellers to cover could produce a large bounce in price.
My last Medical Properties Trust ( MPW ) article in December here , suggested a price rebound or bounce was in order, after steep losses all year. The idea was a price basing pattern was evident, and a short squeeze could develop without warning to push the price +30% to +50% higher. Alas, only a minor +10% to +15% gain appeared, before succumbing to more bad news regarding it problematic tenant Steward Health Care System ....
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For further details see:
Medical Properties Trust: Down, But Not Out (Rating Upgrade)