Medical Properties Trust (MPW) Has Never Looked Better
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- čas přidán 16. 05. 2024
- My Portfolio: / dividendbull
There's been a lot of news surrounding Medical Properties Trust recently, with two events going on with this company's stock. The first and still ongoing story involves a major short squeeze of MPW by users of WallStreetBets and followers of the online influencer Roaring Kitty. On Tuesday this group resurfaced after a several year hiatus and began buying aggressively into many of the most shorted stocks in the market. While this originally included just Gamestop and AMC, it's also resulted in people buying into other companies that have been heavily shorted, including Arbor Realty Trust and Medical Properties Trust.
What happens is that these people intentionally buy heavily into the most shorted stocks in the market in order to trigger a short squeeze. If done successfully, it results in the share price of the stock soaring, and individuals and organizations shorting the stock experience significant losses. On Tuesday, the share price of MPW shot up by as much as 11% during the trading day, only for it to fall back down on Wednesday. As of the making of this video, it's still an ongoing battle, and it's uncertain how things are going to end. MPW and ABR aren't getting the attention GameStop and AMC are from these people.
The second and far more important story involves Steward Healthcare, MPW's largest tenant, declaring bankruptcy last week. It was a move that wasn't too surprising, as Steward had been under a lot of pressure for years because of the pandemic and poor management. On May 6th the company released a statement regarding the restructuring of Steward Health, stating they approved the funding of $75 million in debtor-in-possession financing.
*DONALD NATHAN SCOTT.*
I'm up 15% with MPW. I'm holding them for the long haul. I think, in the LONG TERM, things will work out for the company and it can be a part of my brokerage account,
I think it will be $8 to $10 by the end of the year.
Been averaging down, happy to accumulate
Steward is 20% of their assets, but only 2-3% of their revenue. The hospitals have an estimated value of over $4.5 billion dollars, if sold. Even more, if good operators take over the lease. Hardly a company on the verge of bankruptcy, with 400+ other hospitals around the world that are paying just fine. Never mind, the 1 billion from the recent sale of just 5 steward hospitals in Utah, and 1 billion from steward from the sale pf their physicians network. Steward declared 9 billion in debts in bankruptcy court, of which 6.6 billion was to MPW. MPW effectively owns Steward, or at least controls the bankruptcy. As it stands now, they have about 7 billion in assets, after debt. Their market cap is around 3 billion. That is a hell of deal.
Thank you for your time in sharing so much information with us. Much appreciated
Just reinvesting dividends for now
Let the Shorts keep attacking, and I'll keep buying at these low prices.
I like MPW as a long term investment. I have been averaging down and currently in slight profit. I'll keep buying as the price currently has a huge margin of safety based upon physical assets owned.
I bought into this at 3.07 so I'm feeling really good even though they reduced the dividend. With a 19% dividend at the reduced rate I am super optimistic about this holding in my portfolio. the Share price has been volatile but it seems to have higher highs and lower lows so far. The news is consistently good and the management has been pretty focused on getting things taken care of with their problem tenants. As of today it closed at 5.01. I plan to hold this as long as they pay a solid dividend.
The dividend was already reduced before it got to $3
Finally someone was talking about this i was waiting for someone
I agree with pretty much everything you said. It’s a small holding of mine. I have been adding over the past 9 months and have brought my cost basis way down. If the company can get it together, this will be a real home run. If not, I will cry for 3 seconds and take my lumps (and my tax losses) and move on. Good clip 👍
It's about time MPW got off it's shackles
This is my worst stock I hold right now. It is getting better and I think it will be fine once the dust settles.
Why don’t you sell covered calls in the meantime?
Nice video. I picked it up at Rock Bottom, sold some shares and now have 150 free shares, retaining a 16% dividend on initial investment. It is also my best performer, but this was all luck and i take it with a grain of salt.
I bought $1600 at 10/share. Down 50% ish, $800, but +100% in shares via divs.
I'm tempted to buy another $800 at $5 to get my losses under 25%.
Thanks for this info. I haven't really kept up on this.
You got 1600 in dividends already?
Not out of the norm, depending on when he bought they were paying close to .30cents a share
Sounds a lot like my story with this one. I got it down into the mid $6s, by buying when it was under $4. Good luck everyone !
@@howardwylie1620 My cost basis is 3.65 per share at 1000 shares. Now at 1032 shares with 32 shares from reinvested dividends. Not a bad deal.
Share price tanked within days of me buying it - bag holder extraordinaire.
I admit that I am a bag holder on this one. Literally a couple days after i bought it last year it tanked badly and has not recovered back to my cost.
And it doesn't look like it will anytime soon.
@@christmas10023 Soon is a relative term.
same here, unfortunately
I am averinging down since a year now reinvesting my dividends and some more on the dips. To me we hit the bottom already. Shorting hospitals business is not the right thing. I hope the shorties will be squeezed out soon.
Good analysis. I clipped out of this early on, but am getting interested in picking up again.
Love the video
Thanks
Off topic but I wanted to ask about nfe new fortress energy bought in an I think it’ll be a good hold an they have a good dividend an management
Great video.
With around $120k invested in Alphabet stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.
I own 4164 shares. I cant see any other possible way to own hospitals as retail investor. I dont have billions of dollar buying a hospital.
One of my favourite game a kid was Theme Hospital, thats why i bought it.
Mine was Monopoly. That's why I owe 8000 👅
Revux leadership team is stacked with industry experts.
Revux partnerships are a testament to its credibility.
Thank you
@dividendbull you see acre dividend cut?
Diamond hand is back
Id be interested to see what you think on jef, and vts
MPW is my largest position. I bought 500 shares in January right before the big drop. I had to make a decision and I decided to buy at a lower price. Between the dividend and selling covered calls my cost basis is around $ 3.50. I started my investing journey last December so hopefully in time my exposure to MPW will lessen. Currently own 1340 shares.
Just can't let it go.
Revux market entry timing couldn't be better.
Looked better at $3/share. That's where I bought it, and sold it at $4. Thought I did well, but wish I'd kept it.
Just wait and see how you feel when it reaches $15 a share.
Thats why he hates trying to time the market
Prospect didn’t pay last 2 months according to MPW conference call. It’s only 6% of tenant rent diversification but is a bad principle if keep going.
Can you cover UNIT I would like you take on it .more of an infrastructure bet
I do like MPW and need more Healthcare REITs in my portfolio, but I'd like to see where this bankruptcy takes them. My money is going to other REITs like ADC and EPR for now.
By the time we know what the bankruptcy does to MPW it will be too late
@@MdesougiSteward is the worst…corrupt af! I worked in one of their 7 hospitals in MA. I’m not sure how the proceeds from bankruptcy works, but the state is suing them and also threatening charges against management. It might be a ok REIT…. I honestly have no idea and don’t own any of them. Just be careful with your money - especially since criminal types are involved here.
Revux community-driven approach is what crypto needs.
Revux has the potential to outperform many in the current market.
Thank you.
I DCA down to $5.35/share including past dividends from MPW. I've added additional shares when it dropped to $3.35 totaling my shares to 10K in my portfolio. Thereafter, it dropped some more to $2.95. But I was happy it went back up. I was attempted to get out when it past the $5.35 mark but I'm in for dividends. I'm not going buy any more MPW but am not going to sell either. With 10K shares, every one cent move is $100. Last dividend of $0.15 was $1,500.00.
LOL ...I just sold this. I bought it around $3 and took profits. Its still not challenging to find undervalued REITS that pay yields as high as MPW.
I may buy it back in the low $4s., though.
Thanks for posting!!
It's not going back to the low 4s.
I had a few hundred shares. When it tanked I bought 3 times as many shares at the bottom. I broke even last month and got the hell out.
Sorry, but retail can't buy the quantities that caused this, especially not overnight when the stock shot up to high numbers. This is part of a basket of heavily shorted stocks and that's how it was exposed.
I am glad I managed to sell my 1600 shares of this crap at $6.25.... my average price was $4.3.
the company just loses money quarter after quarter
Healthcare is no easy buisiness.
They are drowning in debt. They intended to rise $2B to this year, with a good part of that groom Steward, which sold a business to pay off its loan to MPW. Are those funds stick in bankruptcy court if did MPW get the money. It’s a high wall of de t .
i'll consider it in the low 4s. i'm not gonna trust a meme short squeeze
This is not a meme stock. It's a legitimate business empire.
I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
As a new investor it's always great to hear from a person who has gone through all the difficult times and come ahead of it. What are some strategies i can employ to be successful?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
I have 300 shares of MPW, which is my strictly speculative play.
I have 190 shares and I'm down I brought it around $10
There was/is a lot of negativity around MPW, for me it smells like an opportunity 🤓
Hold on 2 it
"on 2"?!?
I'm just glad that they let up off of mpw 😂 I'd it runs 1-300% in 1-2 days I have to sell it's just apart of my investment strategy so I can't break the rules but I'm trying to accumulate more shares to run the wheel while collecting divis
I would like to sell covered calls but I'm a little too high on my cost basis.
@@howardwylie1620 I sold puts for my entry, what's your average?
@@howardwylie1620 I have 300 @ $4.47i sold calls on the last run up 3 itm $6 and bought puts. This has been a cash cow for me so far, I'm gonna sell 2 more puts this week hopefully we get atleast two red days to raise the premium some
Revux responsiveness to community feedback is impressive.
Is MPW still 10x levered?
I am Down 42% on this stock.
That's when you average down.
Integration possibilities with Revux are endless.
I hear you but MPW management have made some poor decisions in the past. When Steward was in the earlier stages of financial crisis, MPW management went ahead and lent them even more money. Also, a company selling off assets to pay off debt is rarely a good sign.
🙀
It’s a REIT though, selling properties as the note comes due and using the proceeds to buy more properties is the name of the game. Any REIT with low debt probably isn’t making money.
@@misternobody9801But it isn’t using the proceeds to buy more property. As I point out, it is selling them to pay off debt.
@@winston7751 They used less than $700 million of the $1.6 billion in sales this year on debt and that was future debt paid in advance. Their next debts due are now in 2026. So this appears to be positioning for upcoming purchases because what happens between now and 2026? 20% of their rent revenue that’s been missing from Steward for 18 months is restored as new tenants take over by Sept 30th. At least $693 million in Steward write-offs is refunded back to MPW by then as well. Interest rates will certainly be more favorable by 2026 for refinancing loans then and they still have nearly a billion dollars in cash today to take advantage of this summers 30 hospitals being auctioned off by Steward. All while still collecting the 80% of revenue from the other facilities. What does this do to a company’s AFFO/NFFO by the end of Q4? It also leaves a lot of wiggle room for dividend increases, stock buyback, global expansion, etc over the next 18 months. We should remember they approved a $500 million buyback last year that was not executed due to the unfolding Steward / Prospect fiasco. So this is certainly something I’m watching for in 2024.
Diving into Revux, the more bullish I become.
I sold my shares when it jumped 20% at 5.40 at break even, i think most of the bad news is either over or priced in already so I’m thinking of getting back in but I’m still not to keen on the management so I’ll probably wait a bit longer to get a clearer picture of how to story will play out
I think mpw could be included as meme stock but just that short interest percentage isn't high enough yet.
A little over a third of its shares are shorted.
The short interest is plenty high enough.
I wonder how many more Stewards they lease to. Prospect Healthcare, another opaque private capital venture they lease to, owes the state of CT 67 mil in unpaid taxes and are under investigation from the state AG while trying to sell their CT holdings to Yale Healthcare. Too risky for me..
“this didn't just start with the filing of bankruptcy. They've been marketing these hospitals for at least five or six months. But we do expect, without specifying which hospitals, go when, we do expect that a meaningful amount of Steward exposure will be moved away to new operators before the end of September.”
Isn’t steward filing for bankruptcy?
When it is announced that Steward (the Tenant) is going to be replaced, this thing will fly.
@@jeffolson5828 idk, this is definitely going to be an anchor on them for a few years. CTO had the same issues with movie theaters shutting down.
Yes, that’s why the stock has gone up 40% since January. MPW benefits greatly from this Steward bankruptcy.
All REITs, no matter who, are going to suffer over the coming years. Fed Rates can not come down, no matter what happens. It’s an inconvenient truth.
It's a bubble just like it was in 2008, it will burst at some point, again, just like it did then.
Monotonous tone. Boring. Good info tho.
12:55 PM EDT, 05/16/2024 (MT Newswires) -- Medical Properties Trust (MPW) said Thursday it received a noncompliance notice from the New York Stock Exchange for not meeting the timely filing criteria for continued listing on the exchange.
The company has six months from May 15 to regain compliance by filing the quarterly report with the US Securities and Exchange Commission, Medical Properties added.
The company said the delay is due to its financial ties to Steward Health Care System, which filed a bankruptcy petition days before the quarterly report was due
The trust said it needs to perform additional review procedures and its accounting firm, PricewaterhouseCoopers, requires additional time to complete its interim review of the quarterly report.