MHi_292 (@Valueformoney) on getquin

3Mon·

$MPW (-1.67%) has probably reached a significant deal with Steward to settle the insolvency issues, and this was also approved by the court yesterday. The share price is really soaring today - has the knot now burst?

9 Comments

Chris@market_genius_221

3Mon

Insolvency is fully priced in here.
The book value is around 0.4, which means that the properties and cash are worth more than double the price.
Since all debts for 2024 & 2025 have already been serviced or can be serviced and MPW has come to an agreement with Steward and already has new tenants for the majority, the issue of insolvency is a thing of the past. The new agreements will lead to a reduction in rent until 2026, after which a significant increase in income is likely.

The judge still has to give his approval and then the issue is over.
In the peer group, a tripling of the share price would certainly be possible over the next two years.

The interest rate cuts will also be a positive factor.
I think that the short sellers will now close out in the near future.

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