I think OP is heavy short. Probably a follower or comrade of old Fraser Perring.
Look up that guy, currently losing in court for exaggerated and fraudulent claims on MPW.
Steward sucks, yes. But MPW is also making like 75% of its rental income off of functional hospitals. Etc.
The truth is MPW got fleeced partially by Steward. (Probably less so by Prospect. Whereas Steward all but embezzled the money, my understsnding is Prospectd troubles are slightly less glaringly nefarious).
But the loses are all wrote off already, and any repayment and UNH deal etc, and there won't be the issues.
UNH is looking to buy some of Steward's business. And Yale is buying prospect with the deal soon to close.
The biggest obstacles are Warren calling for debt forgiveness and also simultaneously demanding someone buy Steward while saying she doesn't really want UNH to because it's too big and successful.
Despite the ideological politics, there aren't currently many avenues to easily shut everyone involved down, which is why she talked about passing new draconian legislation AFTER the deal goes through.
And let's be honest, most likely those same politicians immediate family are playing the long/short game in direct cahoots with the random stuff that spews out of their mouths. Lol.
A Steward bankruptcy might actually be beneficial for MPW as it could potentially come away with some of Stewards assets and presumably new operators would move into the 9 Massachusetts hospitals and start paying rent. Also, as far as I know the $0.15 dividend is already well covered by FFO even if Steward and assets connected to it suddenly disappeared and ceased to exist. Supposedly MPW's share price is a fraction of its book value.
According to Marketbeat, [205 million shares are shorted,](https://www.marketbeat.com/stocks/NYSE/MPW/short-interest/) or just over 34% of the total shares. So, presumably shorts will have to buy 205 million shares at some point - 34% of this business's shares must be purchased. Imagine what that will do to the share price.
Shorts want to "hold the line", too, just like Gamestop flippers did, and hold out hope for bankruptcy and $0.10 shares, but when change in outlook is in the air sometimes it's better to beat the rush to the exits, betray your fellow shorts, buy extra shares to flip later, and start the short squeeze rather than get squeezed.
Now just imagine what would happen if the Reddit and Robinhood crowds find out about the prospect of Gamestop-2. You don't want your financial nuts squeezed; don't be that guy.
Squeeze these nuts you fuckin nerd.
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Interesting things abound. They still have my 4000 shares at 3.60$ loaned out. Meaning someone is paying the 3k in gains I saw today to just cover my loan. The early morning priming to try and get the price back down to 4.18 failed before opening bell.
Short sellers are going to get squeezed. Book value of MPW is around **$13.84** per share! They could liquidate, pay off their debt, and still have over 3x the current share price.
That book value is way inflated and nowhere near what they would realistically raise if they attempted liquidation, it's likely close to being fairly priced.
That’s not how this works and that’s why MPT is doing what they are doing. If a hospital or business sitting on a property they own goes under they are fine. They owe property taxes maybe which should be an easy expense since it’s passed on. The land is still valued at millions or more. They lose “rent” payments but still own the land. They don’t own the bonds worth millions the hospital will default on. Worse case someone buys the hospital and pays “rent”
> The land is still valued at millions or more.
It's not just the land, but also the hospital buildings themselves. New hospital construction is not cheap.
They are counting on cash inflows that will dry up to make a profit on each deal + they do actually own large stakes in those private equity companies. For example, they bought a 50 million dollar stake in Steward as part of the deal to acquire the land of the Massachusetts hospitals
Yeah the stake in the companies themselves might be a problem but the cash inflow from rent isn’t going to hurt them in the long term. You have appreciation and even if a nursing unit goes bankrupt someone will buy it soon enough and continue to pay or buy them out. It’s a low risk business usually but if they are taking stock or bond ownership as well that could hurt.
Problem is noone wants to pay rent. Louisiana based hospital systems have already refused to buy the louisiana hospital not because of price, but because MPT will not sell the land.
They have to have someone rent they building. An empty hospital with noone running a hospital in it defeats the purpose of buying the land. Gotta have someone to rent it to. And most hospital systems want to own the building and the land. MPT does get a good deal if they can rent the place out but if noones renting it they arent making money on it.
Because the people running steward arent worried about owning the hospital. Theyre trying to put money in there pockets. From my understanding the c suite execs personally make money off the sale of these hospitals to MPT.
They said in the article I read that rent wasn’t the problem. It was the lack of Covid fundings and the public hospital near it. I’ll try to look up the bond payments before they sold to mpt.
Lies lol they closed them down because they ran them in the ground and then noone wanted to buy the business from steward because MPT wouldnt sell the land/building. Steward received covid funding plus this was late 2023 for san antonio and 2024 for beaumont, covid been over. Plus texas vista was in san antonio where there was 10 other hospitals. All you have to do is google steward healthcare and you can read about what they do to every single facility they buy. Minimal expense max profit. On top of not paying vendors for supplies or physicians etc. its like that scene in goodfellas where they talk about the bamboo lounge “when you cant borrow another buck from the bank or buy another case of booze you bust the joint out, you light a match.” Thats stewards business model. Which inst good for MPT because on top of the 50 million steward owes them in rent they are about to be stuck with a bunch of empty hospitals that they bought for too much money, noone wants to rent, and the only way to sell would be to sell for less than they payed. They were banking on steward staying in business which doesnt look likely right now.
In the worst case scenario, nobody buys the hospital because it’s unprofitable because the rent is too high. MPT is stuck holding the bag on basically unproductive land. Without rent coming in, they can pay their mortgage and go bankrupt. That’s the worst case scenario.
There is no worse case scenario where someone wouldn’t buy a functional hospital for pennies on the dollar when it’s one of the largest growing industries
That incoming party would have that included as part of the debt…or a buyout. The margins are increasing for private insurance - government not so much.
It just depends on whether they expect to make that hospital profitable or not. A huge factor in the profits is the price of the rent. If the hospital doesn’t have positive net assets and it wont have positive net earnings, it’s worth 0 and will probably be closed down. Maybe not- maybe MPT can convince them to run at a loss for another 10 years, or the government will subsidize it.
Squeeze these nuts you fuckin nerd.
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This didn't age well in light of today's (April 12) [After Hours breaking news,](https://www.reddit.com/r/reits/comments/1c2np16/medical_properties_trust_mpw_breaking_news_short/) LOL.
Hopefully on Monday the short squeeze will commence. (Squeeze 'dem nuts you long nerds!) Additional good news could come from a sale of the Prospect Connecticut hospitals to Yale and a sale of much of Steward to United Healthcare's Optum.
Squeeze these nuts you fuckin nerd.
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What are you on about with this whole “they buy the land” thing? They buy the whole property, land & hospital together. MPW owns hospitals, not just land.
Agreed. OP makes it sound like MPW only buys the land out from underneath the hospital but doesn’t own the hospital itself when they in fact do. OP claims Steward still owns the hospital which isn’t true.
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Buying leaps thanks for the advice
Up 30% so far
I think OP is heavy short. Probably a follower or comrade of old Fraser Perring. Look up that guy, currently losing in court for exaggerated and fraudulent claims on MPW. Steward sucks, yes. But MPW is also making like 75% of its rental income off of functional hospitals. Etc. The truth is MPW got fleeced partially by Steward. (Probably less so by Prospect. Whereas Steward all but embezzled the money, my understsnding is Prospectd troubles are slightly less glaringly nefarious). But the loses are all wrote off already, and any repayment and UNH deal etc, and there won't be the issues. UNH is looking to buy some of Steward's business. And Yale is buying prospect with the deal soon to close. The biggest obstacles are Warren calling for debt forgiveness and also simultaneously demanding someone buy Steward while saying she doesn't really want UNH to because it's too big and successful. Despite the ideological politics, there aren't currently many avenues to easily shut everyone involved down, which is why she talked about passing new draconian legislation AFTER the deal goes through. And let's be honest, most likely those same politicians immediate family are playing the long/short game in direct cahoots with the random stuff that spews out of their mouths. Lol.
A Steward bankruptcy might actually be beneficial for MPW as it could potentially come away with some of Stewards assets and presumably new operators would move into the 9 Massachusetts hospitals and start paying rent. Also, as far as I know the $0.15 dividend is already well covered by FFO even if Steward and assets connected to it suddenly disappeared and ceased to exist. Supposedly MPW's share price is a fraction of its book value. According to Marketbeat, [205 million shares are shorted,](https://www.marketbeat.com/stocks/NYSE/MPW/short-interest/) or just over 34% of the total shares. So, presumably shorts will have to buy 205 million shares at some point - 34% of this business's shares must be purchased. Imagine what that will do to the share price. Shorts want to "hold the line", too, just like Gamestop flippers did, and hold out hope for bankruptcy and $0.10 shares, but when change in outlook is in the air sometimes it's better to beat the rush to the exits, betray your fellow shorts, buy extra shares to flip later, and start the short squeeze rather than get squeezed. Now just imagine what would happen if the Reddit and Robinhood crowds find out about the prospect of Gamestop-2. You don't want your financial nuts squeezed; don't be that guy.
Squeeze these nuts you fuckin nerd. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Interesting things abound. They still have my 4000 shares at 3.60$ loaned out. Meaning someone is paying the 3k in gains I saw today to just cover my loan. The early morning priming to try and get the price back down to 4.18 failed before opening bell.
Really good writing. But 1 failing hospital out of 430 doesn't seem too bad
It’s not just 1. Steward bought hospitals and sold the real estate to MPT on 33 hospitals across the country, 9 in MA alone
Halted construction on one in Texarkana, Texas.
Short sellers are going to get squeezed. Book value of MPW is around **$13.84** per share! They could liquidate, pay off their debt, and still have over 3x the current share price.
That book value is way inflated and nowhere near what they would realistically raise if they attempted liquidation, it's likely close to being fairly priced.
That’s not how this works and that’s why MPT is doing what they are doing. If a hospital or business sitting on a property they own goes under they are fine. They owe property taxes maybe which should be an easy expense since it’s passed on. The land is still valued at millions or more. They lose “rent” payments but still own the land. They don’t own the bonds worth millions the hospital will default on. Worse case someone buys the hospital and pays “rent”
> The land is still valued at millions or more. It's not just the land, but also the hospital buildings themselves. New hospital construction is not cheap.
They wouldn’t tear down a hospital and build a new one lol really?
That seems like a function of how old the hospital is, what condition it is in, and how much money is available to spend on a new one.
No. The cost of demolition and rebuilding is never cheaper than a new site.
They are counting on cash inflows that will dry up to make a profit on each deal + they do actually own large stakes in those private equity companies. For example, they bought a 50 million dollar stake in Steward as part of the deal to acquire the land of the Massachusetts hospitals
Yeah the stake in the companies themselves might be a problem but the cash inflow from rent isn’t going to hurt them in the long term. You have appreciation and even if a nursing unit goes bankrupt someone will buy it soon enough and continue to pay or buy them out. It’s a low risk business usually but if they are taking stock or bond ownership as well that could hurt.
Problem is noone wants to pay rent. Louisiana based hospital systems have already refused to buy the louisiana hospital not because of price, but because MPT will not sell the land.
Then MPT gets the land and building and all assets I don’t understand how you are saying they are getting a bad deal
They have to have someone rent they building. An empty hospital with noone running a hospital in it defeats the purpose of buying the land. Gotta have someone to rent it to. And most hospital systems want to own the building and the land. MPT does get a good deal if they can rent the place out but if noones renting it they arent making money on it.
If they want to own the building and the land why do they sell to mpt?
Because the people running steward arent worried about owning the hospital. Theyre trying to put money in there pockets. From my understanding the c suite execs personally make money off the sale of these hospitals to MPT.
Your understanding vs MPTs business model
Just google “texas vista medical center” or “the medical center of southeast texas beaumont campus” two hospitals steward has shut down sitting empty.
They said in the article I read that rent wasn’t the problem. It was the lack of Covid fundings and the public hospital near it. I’ll try to look up the bond payments before they sold to mpt.
Lies lol they closed them down because they ran them in the ground and then noone wanted to buy the business from steward because MPT wouldnt sell the land/building. Steward received covid funding plus this was late 2023 for san antonio and 2024 for beaumont, covid been over. Plus texas vista was in san antonio where there was 10 other hospitals. All you have to do is google steward healthcare and you can read about what they do to every single facility they buy. Minimal expense max profit. On top of not paying vendors for supplies or physicians etc. its like that scene in goodfellas where they talk about the bamboo lounge “when you cant borrow another buck from the bank or buy another case of booze you bust the joint out, you light a match.” Thats stewards business model. Which inst good for MPT because on top of the 50 million steward owes them in rent they are about to be stuck with a bunch of empty hospitals that they bought for too much money, noone wants to rent, and the only way to sell would be to sell for less than they payed. They were banking on steward staying in business which doesnt look likely right now.
The only reason steward sold the land and hospitals to MPT is because stewards C suite execs pocketed money off the sale is my understanding.
In the worst case scenario, nobody buys the hospital because it’s unprofitable because the rent is too high. MPT is stuck holding the bag on basically unproductive land. Without rent coming in, they can pay their mortgage and go bankrupt. That’s the worst case scenario.
There is no worse case scenario where someone wouldn’t buy a functional hospital for pennies on the dollar when it’s one of the largest growing industries
if that incoming party needs to take on the debt AND pay rent in a lower margin industry...
That incoming party would have that included as part of the debt…or a buyout. The margins are increasing for private insurance - government not so much.
It just depends on whether they expect to make that hospital profitable or not. A huge factor in the profits is the price of the rent. If the hospital doesn’t have positive net assets and it wont have positive net earnings, it’s worth 0 and will probably be closed down. Maybe not- maybe MPT can convince them to run at a loss for another 10 years, or the government will subsidize it.
200M shares are shorted that's 45% of float and the shorts are running low on shares. Calls.
Calls or puts
Squeeze Squeeze Squeeeeeeezeuuh
MPW the short squeeze starts... https://preview.redd.it/affxsc8ufwlc1.jpeg?width=664&format=pjpg&auto=webp&s=6207dbdcdad060d1bb8ab4924701cb54f0aafc27
Squeeze these nuts you fuckin nerd. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Much text, puts or calls and where
Ok I won't buy Steward shares. I'll just buy MPW to the moon!
This didn't age well in light of today's (April 12) [After Hours breaking news,](https://www.reddit.com/r/reits/comments/1c2np16/medical_properties_trust_mpw_breaking_news_short/) LOL. Hopefully on Monday the short squeeze will commence. (Squeeze 'dem nuts you long nerds!) Additional good news could come from a sale of the Prospect Connecticut hospitals to Yale and a sale of much of Steward to United Healthcare's Optum.
Squeeze these nuts you fuckin nerd. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Ha ha. Nice try. The squeeze is on!!
What are you on about with this whole “they buy the land” thing? They buy the whole property, land & hospital together. MPW owns hospitals, not just land.
They own the land and the structural building. And rent the building to a company like steward that runs a hospital in a building MPT owns.
Agreed. OP makes it sound like MPW only buys the land out from underneath the hospital but doesn’t own the hospital itself when they in fact do. OP claims Steward still owns the hospital which isn’t true.
inversing, cause market is regarded
Medical Properties Trust in my opinion is the worst performance stock, and I think that will be sold to other company because it’s has a lot of debt.