Medical Properties Trust: The Market Forced Another Panic Sell Off - Stay Calm

Summary

  • MPW fell more than 40% from its August highs toward its October lows. As a result, its YTD total return has fallen to -50% as the market went into a selling frenzy.
  • Accordingly, the market took out lows stretching back to November 2016, causing significant panic among its investor base. However, we gleaned that MPW is now significantly undervalued.
  • We discuss why we believe the selling downside should consolidate unless the market expects a further de-rating is appropriate.
  • Coupled with a highly attractive valuation, with its NTM dividend yields above 10%, we reiterate our Buy rating.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Price crash and bear market

24K-Production

Thesis

Medical Properties Trust, Inc. (NYSE:MPW) has continued to underperform the broad market, as recent developments over the bankruptcy of its tenant Pipeline Health worsened the fears surrounding the sustainability of its rental base.

Before the recent collapse from its

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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