Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (71554)	11/12/2022 4:02:31 AM
From: Ditchdigger	1 Recommendation Recommended By Lee Lichterman III Respond to of 78751

Thanks for the link Lee. A $40m yacht conspiracy theory, an unregulated FTX wild west crypto market failure and name dropping Enron really doesn't change my opinion much regards MPW. Improving financials and a technical chart reversal is where my focus remains. That said, I've certainly been wrong many times before. Best regards.

To: Lee Lichterman III who wrote (71554)	11/12/2022 11:52:43 AM
From: E_K_S	Read Replies (2) \| Respond to of 78751

Re: MPW I follow the company and have owned a position for many years, sold most of my shares last year and only recently have started to buy again. MPW is a medical REIT. I own OHI a similar company and recently added DOC, another medical REIT. I understand that MPW has recently sold some/several marginal properties (specifically their hospitals in Connecticut) . It may have been because of management issues but I suspect it may have more to do w/ US reimbursement rates not covering operating expenses. The Company has total adjusted gross assets of approximately $21.1 billion, including $14.8 billion of general acute care hospitals, $2.2 billion of behavioral health facilities, $1.9 billion of inpatient rehabilitation facilities, $0.3 billion of long-term acute care hospitals, and $0.3 billion of freestanding emergency room and urgent care properties. activity from Q3 9/2022 Sale of eleven facilities to Prime Healthcare (“Prime”) and the repayment to MPT of various loans combined to contribute to a significant reduction in short-term debt in the third quarter; Expected acquisition by a subsidiary of LifePoint Health, Inc. (“LifePoint”) of a majority interest in Springstone Health OpCo, LLC (“Springstone”) that would result in an approximate $200 million loan repayment to MPT upon closing in the first half of 2023; and Agreement to sell three hospitals in Connecticut to Prospect Medical Holdings (“Prospect”) for an aggregate sale price of roughly $457 million in 2023. ---------------------------------------------------------------------------------- Many of the more sophisticated value investors here like to see management to have/own shares in the company and not own/manage subsidiary holding companies that transact/consult in many/all of these side deals. Many times these insiders do these deals at the benefit of their interests rather than those of the shareholders. Could there be 'cooked' books and/or transactions that benefitted the 'insiders' over the shareholders, possibly. These deals are huge. The thing to look at would be how they value the real estate (typically it is hard to use 'market' prices), the amount of debt/leverage and fees paid to the 'brokers/consultants'. It's the 'fees' that can add up especially if there is churning of the assets. Therefore, I like to hold a basket of these Medical Reits to avoid any specific company risk. I try to rebalance the basket every few years. I also can compare the performance (growing FCF, assets purchased/sold). OHI has been an excellent performer and that is one you might want to look at too.