Medical Properties Trust: Is It Safe to Buy the Dip?
Medical Properties Trust (NYSE: MPW) stock is trading at a little more than a $1 higher than its 52-week low, and its dividend yield is an enticing 14%. However, the real estate investment trust (REIT) is facing multiple issues with struggling tenants and a recent short-seller attack. The stock is down more than 62% in the past year, and so far in 2023, it is down more than 27%.
The healthcare REIT said on March 30 that it was suing Viceroy Research, calling the short seller's allegations about the company baseless. (A short seller hopes to profit when a company's shares decline.) The company is seeking compensatory and punitive damages from Viceroy, which has published 11 different articles slamming Medical Properties Trust this year alone, saying the REIT is overstating its assets and will have no choice but to cut its dividend.
Given the concerns about Medical Properties, is it safe to buy the stock now that it's selling for only roughly 5 times earnings, or would investors be attempting to catch a proverbial falling knife?
Source Fool.com
