Medical Properties Trust Inc. (MPW)

Stock of the Day
Medical Properties Trust, Inc. (MPW) operates as a real estate investment trust (REIT) in the United States. The company acquires and develops healthcare facilities, and leases the facilities to healthcare operating companies. It also makes mortgage loans to healthcare operators secured by their real estate assets. The company’s facilities include rehabilitation hospitals, long-term acute care hospitals, regional and community hospitals, women’s and children’s hospitals, and ambulatory surgery centers, as well as other ancillary facilities.

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MPW – 15.15
A young lower priced stock that has had a few interesting down days but the overall trend has been higher. Volume has been increasing and major support seems to sit lower at the 200-d m.a. Shorter term entry area and support is near the 50-d m.a. but I would ideally want to enter near the 200-d m.a. after or during a nice consolidation phase.

The year over year earnings and revenue growth is what catches my eye with this young, lower priced stock. Further expansion and acquisitions will fuel future growth and this seems to be the model the company is taking.

The shares in MPW provided a 7.8% dividend yield which is above the 5.8% peer average.

2006 Return: 67%
52-week Range: $15.65 – $9.40

Estimate: 1.03

Q1: 0.20
Q2: 0.20
Q3: 0.22
Q4: 0.27 (E)
Yearly: 0.89 (E)

Q1: 0.14
Q2: 0.17
Q3: 0.14
Q4: 0.16
Yearly: 0.61

Revenue (millions):
Q1: 12.69
Q2: 13.16
Q3: 15.12
Q4: —
Yearly: —

Q1: 6.48
Q2: 7.24
Q3: 8.21
Q4: 9.62
Yearly: 31.55

Institutional Ownership: 66%
Market Cap (B): $0.615

Net Income:
2005: 19.6
2004: 22.4

2005: 59.1
2004: 42.7


Number of Institutions:
Money Market: 88
Mutual Fund: 133
All Others: 3

Top Holder: Cohen & Steers Capital Management, Inc.
2.2 mil shares or $33.5 million, 0.1% of portfolio
Total Equity Value of Portfolio: $20.5 billion

It’s a small company with a small portfolio but with growth, increased leverage and additional acquisitions, the stock has room to grow. My ideal entry is closer to the 200-d m.a. or after the first consolidation phase from new 52-week highs (as long as it holds support).

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