Summary
- Omega and MedEquities Realty announced a merger agreement under which Omega will acquire all of the outstanding shares of MedEquities.
- MedEquities was simply not getting traction and has turned into a “value trap”.
- This new deal provides Omega with the right momentum to start the year, and closer to an upgrade in the elite SWAN club.
- This idea was discussed in more depth with members of my private investing community, Rhino Real Estate Advisors. Get started today »
Some of you may recall that last February 2018 I downgraded shares inOmega Healthcare Investors (OHI) from a SWAN to a SALSA. As readers know, to be considered a SWAN – stands for “sleep well at night” – the company must exhibit all of the ingredients of a high-quality enterprise.
Although I had to downgrade the company I explained that “I'm sticking with Omega… because I'm a value investor. That simply means that sometimes I have to go against the herd and even risk being called a dummy. Buying stocks when they are cheap has been the best way to build wealth in the stock market, and companies that are on sale reap the highest returns.”
Let me put this bluntly, I have earned my stripes on Seeking Alpha for digging deep into research, not writing click bait articles, but deep level research that can assist investors with protecting their hard-earned capital at all costs.
While many analysts and investors were fearful of Omega (over a year ago), I became more fixated on the underlying fundamentals, recognizing that eventually the company’s share price would normalize, and eventually return to its SWAN status.
Source: Yahoo Finance
