MPW Dividend looking strong. Stock up 6%

 Medical Properties Trust revealed that a bankruptcy court approved Pipeline Health's assumption of the master lease. As a result of the court's approval, MPW will receive all the rent accrued through the first half of 2023.

MPW will also fund an additional behavioral facilitty within the Coast Plaza Hospital. It will earn rent at the lease rate once completed.

MPW's top tenant, Steward Health Care System is showing signs of producing sustainable free cash flow while improving it's operational plans.

Dividend is looking more sustainable.

 

MPW Update

 Some of the company's tenants are facing financial chalenges.

One customer has filed for Bankruptcy.

Outlook is improving with greater reimbursement from medicare and private payers.

Dividend Yield - 9%

-29% on the investment.

Bought Alico Inc $ALCO @ $32.375

 Florida based.

Alico operates as an agribusiness and land management company.

The company operates in two segments:

Citrus segment - cultivates Citrus trees to produce citrus for delivery to the citrus markets.

Land Management - cultivating and leasing land outlying Collier, Glades and Henry Counties. Has 74,000 acres of land situated in 8 counties in Florida.

Buying Medical Properties Trust MPW @ $18.065

 The company focuses on leasing facilities to hospital operators.

Owns 435 facilites with 44,000 licensed beds in USA, Australia, Colombia and Seven European countries.

Has increased dividend for 8 consecutive years.

Buying Etsy (ETSY) @$224.60

 Etsy operates a global marketplace where people can buy and sell unique goods online. Etsy can be seen as the "Amazon for artisans" and is a place people go to buy "one of a kind" special products.

- Etsy has been on my watchlist for a while. There was a lot of hype around the company during the hight of the pandemic, so I held back. But the company has proven that it's numbers go with the hype and is consistently performing.

- Etsy has a market cap of $28B which tells me it has much room to grow in the super hot e-commerce sector.

- The company has 5.2 million active sellers. Sellers are the number to follow since they will tend to be very loyal to the platform.

- According to a 2020 survey, 88% of Etsy buyers say that they find on Etsy items that they can't find anywhere else.

- Also consider that people are trying to turn away from China made products and move towards supporting artisans in their own countries.

- Etsy is focusing on new markets. Particularly - U.K., Canada, Germany, Australia, France and India, representing a $1.7 trillion addressable market opportunity.

- Recent acquisitions of Depop (2nd hand fashion) and Elo7 (Brazilian market place) are great moves in my opinion.

- I love "Platform Businesses" for their flywheel effect. More sellers create more products, bring more customers who increase total merchandise volume - all maintained with a steady spend on technology and R&D.

- P/E of around 60 is high, but not unheard of in this space.

- One of my favorite ratios to look at is the 'Return on Equity' = ROE. Simply put this shows the return the company make on it's market cap, excluding debt. Etsy's ROE is a fantastic at 91.44%

- CEO Josh Silverman is very impressive. Has previously served at American Express, was CEO of Shopping.com and Skype.

- Etsy is part of my E-commerce position which includes Amazon, Pinterest, Riskified, Berkshire Grey, Fiver and Amazon.

 

Selling Acuity Ads @$7.42 (4.58% Gain)

 After Apple came out limiting data that 3rd party ad platform can use to track customers, it seems that the space is cooling off.

I have two positions in this space - The Trade Desk (TTD) and Acuity Ads (ATY).

- The Trade desk is a bigger company, more established and set to continue to grow. I'm still very bullish on the space in general but think one position will suffice.

- In choosing which position to sell, I have no doubt - hold the big player.

- Selling ATY with a small gain and making room for my September investment.

Selling McCormick (MKC) @ $87.07 (41.49% Gain)

 Selling McCormick to make room for a more aggressive investment. I bought McCormick at the hight of the pandemic after it took a hit together with so many other quality stocks. 

- The investment turned out profitable but this portfolio is about driving more aggressive returns so I'm exiting this position.

- I love this company as a long term investment in a solid portfolio.