2024-04-18 08:03:25 ET
Summary
- Medical Properties Trust stock has almost recovered after a dip in January, but it is still not a good long-term investment.
- MPW has announced a dividend of $0.15 per share and has sold some assets to improve liquidity. But it doesn't change the fundamental picture much.
- The company's performance and management compensation raise concerns, and there are allegations of a "Ponzi-like" scheme in a recent letter from senators.
- I wouldn't be surprised if the inevitable short covering leads to MPW going up 15%+ ahead of earnings. But then the future still looks bleak to me.
- I recommend speculators to get out of their long positions, selling into the strength (or maybe selling call options to get some premium).
Intro & Thesis
I have been covering Medical Properties Trust ( MPW ) stock here on Seeking Alpha since November 2022 and have been neutral on the stock since then despite the apparent cheapness of the company: Various details have puzzled me, such as management's actions as well as the internal issues with Steward (at the time, the Steward risks were just arising)....
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For further details see:
Medical Properties Trust: Your Chance To Get Out