What is a bearish case for MPW REIT? Why is so cheap?

Discussion in 'Fixed Income' started by Kust, Jul 30, 2021.

  1. Kust

    Kust

    MPW owns hospital buildings, about 5% dividend yield, and it increases gradually.
    It seems to be about 20-25% undervalued to compare with other REITs.
    What am I missing?
     
  2. What makes you believe it's "undervalued and cheap"?
     
    murray t turtle likes this.
  3. Kust

    Kust

    Hospitals seem to be less risky than offices, retail etc. 5% dividend yield is obviously better than 1,5-4% yield of most other REITs.
     
  4. "Dividend yield" can be difficult as a measuring tool. If the price drops the dividend yield rises... at least temporarily... until the board adjusts the dividend to reflect "current/projected" conditions.

    If you're a trader of "swing" duration or longer (which you should be), dividend yield is likely moot and should not be a consideration. That said, there is chart support @ $19.80/$20.00... even down to $19.00, should you care to play a long.
     
    Last edited: Jul 30, 2021
  5. Kust

    Kust

    I consider MPW for long term investment
     
  6. ET is a trading website.... you know, "Elite TRADER"? (Good traders don't pay any attention at all to "dividend yield", as it's not important.)
     
    Last edited: Jul 30, 2021
  7. iprph90

    iprph90

    Hospitals are not a sure bet: If you consider the rapid growth of urgent, immediate care, diagnostic centers that have popped up in recent years.
    High deductible insurance has created a huge market for lower cost health care services.
     
    murray t turtle and zdreg like this.
  8. Kust

    Kust

  9. Kust

    Kust

    In this case, the problem is not competition but MPW accounting practices and growth strategy. See the link in my previous post.
     
  10. %%
    REITs are known for underperforming, as a sector, many years.
    SOMEONE called up Dave[REALTOR, radio show] Ramsey; why is RE a good investment + so many lousy REITs bad??
    Too many fees.[And even a good company can be a lousy stock]:caution::caution:
     
    #10     Aug 12, 2021