|SoTM Bull's Eye Report - Today's Most Compelling Buy |
Thursday, May 2, 2013
At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.
| Medical Properties Trust Inc ||MPW || Specialized REITs || 8.6 || +26.22% || $15.50 |
Why We Like The Stock:
Medical Properties Trust Inc (MPW) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Specialized REITs have been strong in the intermediate-term, as evidenced by MPW's competitors CubeSmart (CUBE), Sovran Self Storage (SSS), and Sunstone Hotel Investors Inc (SHO). While it's not always easy to buy extended stocks, MPW has performed during this bull market and rarely pulls back for a buying opportunity. Currently, however, MPW has done just that. The stock is about $0.90 below its mid-April highs of $17, and is in the process of "filling the gap" created on April 12. As a short-term trade, we would give this stock a short leash, setting our stop at the 50-day moving average ($15.50), with a price target of $17. It's not an ultra high-reward opportunity, but with a tight stop it has relatively low risk. With this bull market potentially peaking and just about everyone calling for a sloppy summer, it's best to play it on the safe side.
|We Would Be Buyers: |
At the current price (~$16.12).
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|Company Profile: |
Medical Properties Trust, Inc. is a self-advised real estate investment trust (REIT) focused on investing in and owning net-leased healthcare facilities across the United States. The Company conducts all of its business through MPT Operating Partnership, L.P. It acquires and develops healthcare facilities and lease the facilities to healthcare operating companies under long-term net leases. It also makes mortgage loans to healthcare operators collateralized by their real estate assets. As of December 31, 2011, its portfolio consisted of 62 properties: 55 facilities (of the 60 facilities that it owns) are leased to 20 operators with the remainder in the form of mortgage loans. Its owned facilities consisted of 25 general acute care hospitals, 19 long-term acute care hospitals, eight inpatient rehabilitation hospitals, two medical office buildings, and six wellness centers. On January 4, 2011, it acquired the real estate of the 19-bed, Gilbert Hospital.
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.
At the time of publication the editor and affiliated companies own the following positions: None
Note: Positions may be bought or sold while this publication is in circulation without notice.
Medical Properties Trust Inc - Last 3 Months
Medical Properties Trust Inc - Last 12 Months
Medical Properties Trust Inc - Last 5 Years
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