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Strategies & Market Trends : Meditrust NYSE: MT
MT 37.86+1.1%3:59 PM EST

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To: WILLIAM C KLEMA who wrote (130)11/8/1999 6:15:00 PM
From: M. Frank Greiffenstein  Read Replies (2) of 233
 
Uncertainty rules!

William, we have to ask ourselves why the market turns up its nose at outstanding returns during a time of creeping inflation.

The only answer I can pull out of my rigid mind is the following: Fear of more skilled care company blow ups. Why should SHG be the only one? I am heartened by Congress raising Medicare payments 2 weeks ago. Will it be enough to keep those rent payments going, or are leases going to be renogiated.

I wish MT management would give more guidance. Why did they chose 50% as the lower limit estimate? Do they mean the worst case scneario by this (I hope!) or do they mean something else. They are buying MT stock with Form 4 purchases, so that is indirect evidence that they are serious.

RE: Breakup value. Ignore Yahoo! figure of $19 a share. Per Paine-Webber analyst, book value is slightly north of $12.

DocStone
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