What’s Up DOC?
- I’m here today to share with you a real hunter and rabbit story, and actually more of a tortoise and the hare scenario.
- DOC is well positioned in 2018 with very little short-term debt, as the company termed out its short term debt with the 10 year publicly-traded bonds in December 2017.
- DOC maintains exceptional credit profile despite rapid growth.
- DOC is now yielding 6.2% and I consider that highly attractive, especially when you consider the enhanced credit quality of DOC’s portfolio.
- I am UPGRADING DOC from a BUY to a STRONG BUY.
What’s Up Doc? Is a Looney Tunes cartoon that was released by Warner Brothers Pictures in 1950 to celebrate Bugs Bunny’s 10th birthday that year. I’m sure many of you know the story: Bugs and Elmer Fudd are the classic duo of the Hunter versus the Hare, here the trailer…
Source: YouTube durece100
OK. Enough for the cartoons, I’m here today to share with you a real hunter and rabbit story, and actually more of a tortoise and the hare scenario.
Keep in mind, I have been a customer of DOC for quite some time, I flashed my BUY sign up over four years ago as I explained that “DOC seems fit and I’m satisfied that this Health Care REIT will benefit from the prospects and outperformance generated by strong external growth.”
As you can see, DOC was a top-performer (for me) in 2016, however, shares under-performed in late 2017 and year-to-date 2018. Oddly, DOC has under-performed many other high-quality REITs also in 2018 and now that year-end results are in the rear-view mirror, it’s definitely time for a checkup, hence the title to my article (of course I love Bugs Bunny too), “What’s Up DOC?”