Company is heavily invested in a California hospital corporation that is controversial and maybe having some problems. Well known issues with a bankrupt hospital in Northern Cal driving the stock down. Any other issues?
Its hard to believe that americans actually believe there will be nationalized healthcare. America is practically broke, and there's very little political will in either party to fix the healthcare problem. Of course right wing self proclaimed conservatives claimed this would happen under clinton as well, just as they did for the last 40 years whenever this issue of failed healthcare reared its ugly head - the difference here is the AMA is starting to weigh in on the other side.
Why the sudden change? Well ask a doctor, they'll usually point out that corporate managed healthcare (privatization) has failed in every way possible to provide healthcare, and is now actually a drain both on the medical profession and the economy as a whole.
Keep touting privatization, and keep ignoring the customers and health providers, that way the revenue upside will drop to 0, its natures way of telling you that capitalist (or socialist) ideologues are profound idiots.
Prem Reddy has a history of success in turning around hospitals. Sounds like he got MPW to do something very decent for(ex)employees of the hospital that went under. Hopefully, our good will pays off and Prem Reddy's prior success continues in this facility.
I hope Aldag knows what he is doing in putting all his eggs in one basket with Prem Reddy and Prime. MPT is now in the hospital management business with Reddy in Redding, CA. Sounds like a desperate move to salvage a lsot investment.
I always try to keep an open mind about stock fundamentals and bearish (as well as bullish) scenarios, but lately, I think many stocks are being moved primarily by forced liquidations by hedgies and MFs that have nothing to do with price, valuations, fundamentals, etc. I used to think that when a stock went down, someone knew something I didn't know. That may be frequently true, but less so lately. Check back with me in 6 months or so, but I've been buying MPW at these prices.
Good luck if you are buying now. There may be nothing wrong with the company but I have seen so many similar instances where bad news eventually leaks out(too late for the investors of course) that I personally would rather wait it out and pay more but have the assurance that all is well.