What is a bearish case for MPW REIT? Why is so cheap?
- Thread starter Kust
- Start date
What makes you believe it's "undervalued and cheap"?
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.
"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.
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I consider MPW for long term investment
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.)
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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.
UPDATE. I have found the bearish case for MPW - https://seekingalpha.com/instablog/...t-sub-prime-hospital-reit-50-percent-downside - IMHO very convincing. Great explanation why it is relatively cheap.
In this case, the problem is not competition but MPW accounting practices and growth strategy. See the link in my previous post.
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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]
