![]() ![]() I wonder whether it's necessary to devote an entire paragraph in the risk section to the factor that could potentially benefit the stock's price. According to Hedgeye's analyst, Rob Simone, the management of MPW acknowledged the heightened volatility in their most recent 10-K report mentioning a short squeeze: Some analysts here on Seeking Alpha have already written about the likelihood of this happening, saying that it's a positive sign that should lead to recovery growth in the stock. In itself, the story of MPW's short squeeze looks very strange. I continue to watch MPW from the sidelines, trying to find something more stable among thousands of other tickers where the risk-return ratio is better. I conclude that the probability of a short squeeze in MPW is highest right now, but the medium-term performance of the stock itself isn't related to this rather rare event. Today, I'm discussing a possible short squeeze in MPW, which has become one of the bulls' arguments for buying the stock on another dip. Since the publication of my first and second Neutral articles, the MPW's total returns to date are -27.97% and -8.06%, respectively - although the S&P 500 Index ( SPY ) gained 9% after the first publication. Moreover, the cash-on-cash yield was consistently low and was expected to remain so for the foreseeable future. At that time, it became apparent that the company had significantly underperformed compared to its industry peers, despite its initially enticing low price. In my most recent post about a month ago, I highlighted the potential pitfalls of relying on MPW's seemingly impressive dividend yield, cautioning against falling into the trap of a so-called 'high dividend' illusion. ![]() I have previously discussed the stock on two occasions. Medical Properties Trust ( NYSE: MPW) is perhaps the most controversial company, not only among its lesser-known peers but also among most of the other stocks covered on Seeking Alpha. Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate.I suggest income-seeking investors look for opportunities in thousands of other tickers, many of which appear far more stable than Medical Properties Trust.I think the company has a fundamental explanation of its ugly price action - and it's not about short sellers. MPW is still losing out significantly to individual industry peers, although the price looks cheap at first glance.In my opinion, as short positions gradually decrease over time, the stock's performance tends to align more closely with its underlying fundamentals and the behavioral patterns of existing shareholders.Indeed, the probability of a short squeeze in MPW stock is highest right now, but the medium-term performance of the stock itself isn't related to this rather rare event.MPW decided to devote an entire paragraph in its risk section (10-K) to the factor that could potentially benefit the stock's price - a possible short squeeze.
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