You say you have a lot of analytical smarts, but you give no basis for your projection of $35 per share. At that price the yield would be barely over 5%, way below MT's peers in the medical and hotel sectors.
The way is see it, MT will get to something in the $18-20 range, where the yield will be 9-10%. At that point I plan to take profits, so please enlighten me as to why it should go higher!
If the Hilton thing works out fine but explain your thoughts on that buy please. I think MT has done a lot better job in restructuring than PAH has.One guy downgrades MT and the stock drops 11/16. What a joke. I would much rather go with MT than PAH.By the way. Has PAH decided on a dividend yet or is it still quarter to quarter.Also MT can always raise the dividend Val.You didn't sell MT to buy PAH did you? Just a thought.
I have bought into both MT and PAH and have sold neither to this point. Since MT has bitten the bullet and has a very credible restructuring under way, I see MT as a fairly secure holding with appreciation to the 18-20 level as almost a sure thing. The value could go higher after the split.
On the other hand, PAH clearly has deeper troubles and just how they get out of them is still not clear. I view PAH as a speculation, hoping the values are there, perhaps in the $10-12 range. This target is not the result of any deep analysis (which I may try when I get some time), but just a guesstimate obtained by taking a discount from the $18 book value as of a year ago or so.
I don't understand the downgrading of MT, especially to a 'market underperform' -- I agree with you about that. I think it presents a 'buy' opportunity and I am trying to persuade my wife to buy some. She keeps asking why it was downgraded and I tell her that analysts are just human beings with emotions and complex motivations and that for some reason this one just got t'd off with management. Happy investing.
A yield projection of 5% in 12-18 months based on a price of $35. assuming no change in dividend payout will be exceptional and in line with the projected yields of other REITs in similar industries compared with a below 4% yield in long term T-bonds, 18 months from now.
Don't ask me how I know this because I'm afraid to tell you.