I was aimed at bagholding $MPW hoping that the dust will eventually settle. However, I'm not longer sure that is a good idea.
From today's Bear Cave:
Viceroy Research published a case study concerning Medical Properties Trust (NYSE: MPW — $7.66 billion), a Birmingham-based REIT that owns hospitals typically in long-term sale-leaseback transactions. Specifically, Viceroy alleged Medical Properties Trust paid 3x market value for a neuropsychiatric hospital in Houston. Viceroy also alleged that Medical Properties Trust “capitalizes these absurd overpayments, and proceeds to borrow more money to make more uncommercial investments.”
Separately, Viceroy Research published an open letter to Mr. Terry Sparks, the PricewaterhouseCoopers LLP engagement partner responsible for auditing Medical Properties Trust. Viceroy “highlighted numerous uncommercial transactions which substantiate our belief that MPW round-trips revenues” and said it has “spoken with various whistleblowers… since the publication of our report.”
In October 2022, The Bear Cave published on Medical Properties Trust and highlighted that the company appeared to donate money to a church group attended by auditor Terry Sparks.
Older report here: https://thebearcave.substack.com/p/more-problems-at-medical-properties?utm_source=substack&utm_medium=email
The stock is down 40% in a year, with a yield of 9.07% and a valuation of Price/FFO 7x.
Do you think now is too late to sell and it is better for waiting or sell and go away?
submitted by /u/AdamovicM
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