Medical Properties Trust: The Case For A Turnaround (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Portfolio rent coverage metrics are improving and may continue to do so, aided by Medicaid budget cuts which may lead to more funding for acute care hospitals, benefiting MPW's portfolio.
• MPW is rebuilding via new hospital tenant additions that have good financial standing. This can lead to a recovery in revenues along with improved cash conversion that is already happening.
• MPW stock's valuations are attractively placed at a deep discount, both vs its comps and vs its own historical trading multiples.
• Relative technicals vs the S&P 500 suggest a reversal in the works, but the current levels carry some risk for buys.
• High fixed debt proportions are a headwind risk in a higher-for-longer rates environment, particularly given MPW's high leverage levels.

Read the full article here.