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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: alan who wrote (6151)	1/14/1999 4:25:00 PM
From: TRIIBoy	Respond to of 18998

The goods on MediTrust (MT): CEO in 1996 and 1997 went out fo control "diversifying" its healthcare assets. It bought a racetrack, La quinta Inns and some golf courses. Also sold a forward contract at $32 per share (Bad move). This CEO leveraged the company to its eyeballs. Well, they threw him out and now the Bass Brothers are in charge (Thomas Taylor is their representative). They are selling the $1 billion in assets (already sold $600 million) including the golf courses and racetrack. Then they are splitting the company in two health care and lodging (La Quinta). They also just reduced their dividend to $1.84 a year from $2.48 (untenable). The reduction in dividend saves them $90 million a year. Also they have settled half the forward contract and will settle the rest with a preferred offering by Merrill. Once this offering is done look for the Merrill analyst to pound the table. So what you have is a company that sells for below break-up value has a 13% yield, massive insider buying, pro-active management, and a value event when the company splits itself.