# Medical Facilities Corp (DR.T)



## Flash (Nov 25, 2014)

Looking to get into one more Healthcare sector in Canada.
Found Medical facilities. The dividend payout looks very nice. The financials don't look very specials, and not sure why the recent drop as I didn't follow this company. Just came across it very recently.
As always wanted to see the input of some very knowledgeable members on this forum.
My term would be long term.

Cheers


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## gardner (Feb 13, 2014)

DRs business is mainly -- maybe entirely -- in the US. There's probably more private sector money to be made there.
They strike me as very REIT-like. No real bio-medical technology or anything, just facilities.


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## Synergy (Mar 18, 2013)

I for one don't view DR as a REIT. They earn revenues by the income generated from their specialty surgical hosptials. Great business to be in considering our aging population. I sold my shares a while back, locking in some profits before they evaporated. It was doing quite well in 2013 and the early part of 2014, then things started to fall apart. I still like the story but the chart was breaking down and the strong US dollar wassn't keeping them a float.


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## 299889 (Jan 5, 2015)

Ive been watching this for sometime now and I believe the reason for the dramatic drop in price is because they dropped there dividend from .09 to .07 in march and for such a small div thats a big change, they could be loosing profits or not making much or plan on picking up shares in a 5th hospital in the states.


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## Canuck (Mar 13, 2012)

eeehitscody said:


> Ive been watching this for sometime now and I believe the reason for the dramatic drop in price is because they dropped there dividend from .09 to .07 in march and for such a small div thats a big change, they could be loosing profits or not making much or plan on picking up shares in a 5th hospital in the states.


Where are you seeing that info regarding the drop in divy?

looks the same to me
http://www.newswire.ca/en/story/1505535/medical-facilities-corporation-announces-march-dividend

I think it's .0764 U.S which works out to .09 Canadian


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## Flash (Nov 25, 2014)

Yes, the dividend stayed the same throughout. It didn't rise tho throughout almost 5 years. Well actually it did increase by 0.0021 on 17/09/2012, but it's still practically 9c.

So yea, anyone knows more why the plunge in stock price? 

2014-12	2013-12	2012-12	2011-12	2010-12	2009-12	2008-12	2007-12	2006-12	2005-12
Net Income USD Mil	23 11 33 -15 -1 -1 20 -18 — -4
Earnings Per Share USD	0.56 0.37 1.16	-0.54 -0.05 -0.03 0.64 -0.64 — 0.21

These looks pretty good. I'm a rookie when it comes to reading financials but I'm pretty sure these 2 would be pretty relevant


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## GoLong (Feb 21, 2015)

Margins have decreased in the past which has investors worried. I don't follow it too closely but the reasoning for decreased margins is increased salaries and reduced credits received from insurance companies or something along those lines.


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## leeder (Jan 28, 2012)

Any issues with the dividend payout?


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## GoLong (Feb 21, 2015)

leeder said:


> Any issues with the dividend payout?


Payout ratio was only 85.2% for FY 2014. This was above estimates and above company's target of 80% and was higher than the 2013 payout of 84.3%.


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## TheArrow (Jan 13, 2014)

I just bought 100 shares, bad idea? Holding 1+ year


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## GoLong (Feb 21, 2015)

TheArrow said:


> I just bought 100 shares, bad idea? Holding 1+ year



Think it's a good company and the div. is definitely stable at this point (also no concerns over balance sheet imo). I'd just like to get a bit more information on the reimbursement headwinds...if you know much about it then I'd love to hear your thoughts. Margins seem to continue to be hit as a result of them. Hedges should start to roll of on FX, which will be very positive (they'll also roll out new hedges to replace expiring ones so will lock in solid pricing for 2016 as well). I was hoping it would dip below $16 to be honest lol.


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## jaybee (Nov 28, 2014)

I dipped my toe in the water on DR today @14.60. I've been been watching it for awhile, and I couldn't help myself!


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## My Own Advisor (Sep 24, 2012)

At 52-week low now.


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## jaybee (Nov 28, 2014)

Anybody know off-hand if DR's dividend is paid in US$ or Cdn$ ?


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## Synergy (Mar 18, 2013)

jaybee said:


> Anybody know off-hand if DR's dividend is paid in US$ or Cdn$ ?


They earn US$'s and pay out their dividends in CDN$'s. At least that's how it was when I was holding the stock.


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## jaybee (Nov 28, 2014)

Thanks Synergy. That's what I was thinking.


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## Flash (Nov 25, 2014)

I want to buy a few hundred shares, mainly for dividend.

Anyone can pitch in how sustainable these 9c shares are in present world volatility?


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## Flash (Nov 25, 2014)

No feedback?  thinking of pulling the trigger if it dips below 14.5. For a few moments it dipped under 15 today so it looks promising


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## londoncalling (Sep 17, 2011)

I am guessing it will get there and even lower if the macro continues.


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## mikeyrofl (Jul 12, 2016)

Is this a good value play rn?


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## smc_99 (May 17, 2017)

I'm not sure if it's a value play or not. Some of the recent decline in the stock is due to currency fluctuations (accounts for around 10% of the decline), as well as the recent CEO leaving without explanation. Reviewing the Financials the stock does look sound however. It sounds like further 'competition' is entering some of the areas in 2018, but this may just be to meet the demands of an aging population. It wasn't clear to me on review of the documents if the hospitals they own have any value (land, building, etc). It appears they are mortgaged as they pay amortization costs. 

My opinion is that it seems like an income play. Would be curious to hear other opinions


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## doctrine (Sep 30, 2011)

I owned this years back for a while and had a nice return, but eventually left because of lack of growth. Really, they're just paying too much out and can't grow the per-share business. There might be a play to buy it if it gets too low, but not buying the sustainable dividend model of it (yet anyway). The stock has gone nowhere in the last 5 years; they've grown revenue but income from operations has shrunk, and the stock reflects it.


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## john.cray (Dec 7, 2016)

Is anybody looking at DR for a new entry at those current levels?


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## Eclectic12 (Oct 20, 2010)

Waiting for lower prices to add more ... I'd have to check but seem to recall the last add at under $13.


Cheers


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## john.cray (Dec 7, 2016)

DR.TO is -30% on terrible earnings release today. I am glad I didn't initiate a position here.
Pure speculation at this point on. Payout ratio is 179.0% and probably a cut is coming.


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## john.cray (Dec 7, 2016)

Another -10% or so. According to https://www.fool.ca/2019/08/12/valu...ig-decline-this-stock-is-tantalizingly-cheap/ this represents deep value investment.
Does anyone else keep an eye on this one ?


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## doctrine (Sep 30, 2011)

As far as I can tell, their businesses are not running at a level that justifies the capital stock of the corporation; it barely sufficed years ago to fund its hefty dividend and now the business is starting to erode significantly. And they do not have the capital or capacity to change it. And may be having their shorts eaten by competitors in a potentially cutthroat and not-always-transparent medical industry with all sort of collusion and backroom deals between hospitals, clinics, insurance companies, and governments. Would avoid with extreme prejudice. The dividend will probably be gone within the year.


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