Medical Properties Trust: Ready To Catch A Falling Knife?

Oct. 24, 2022 4:37 PM ETMedical Properties Trust, Inc. (MPW)57 Comments
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  • As the tenth buy analysis on the SA platform, it does seem odd for MPW investors indeed, due to the catastrophic -56.42% plunge the stock had experienced YTD.
  • MPW may, again, attempt to paint a rosy Steward picture during the FQ3'22 earnings call on 27 October, with no one seemingly convinced thus far.
  • However, after weighing MPW's excellent B- dividend safety grade and improved profitability ahead, we reckon the pessimism had only welcomed extreme dividend hunters seeking 11.93% yields.
  • Naturally, this is assuming no tenant bankruptcies, no default issues, and no dividend cuts ahead. Wow, quite a mouthful.
  • The falling knife can be an extreme challenge to swallow, indeed, given the peak recessionary fears.

Man hold knife in the mouth and keep in balance wineglasses on it. concentration

Viktor Hladchenko/iStock via Getty Images

Investment Thesis

The issue with Medical Properties Trust's (NYSE:NYSE:MPW) tragic valuations is the probable bankruptcy of its largest tenant, Steward. The latter had infamously encouraged rumors of cash flow issues, due to the perceived inability to pay its

This article was written by

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I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

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.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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