Stockchase Opinions

Mike S. Newton, CIM FCSI Iron Mountain IRM-N TOP PICK Sep 27, 2010

Data storage. Very strong cash flow. Are going to take their physical business and digitize it. A classic value play.
$21.860

Stock price when the opinion was issued

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PAST TOP PICK
(Top pick Sept. 27/10, Up 47.45%)
WATCH

It falls under industrials. It is usually doing well from Aug. until May. The upward trend is broken and now he is looking at where to step in. Wait for it to show a little bit of strength.

BUY
They've gone digital from owning physical to digital record shortage centres. It's a REIT and pays a 5.5% dividend. The stock is up over 50% YTD.
BUY
Pays a good yield and is a consistent business.
BUY
A good, consistent business (REIT) and pays a 5% dividend.
BUY
Likes their recent pivot into data centres, but this stock has fallen a lot. They used to be a paper-management business (i.e. document shredding). In 2014, they became a REIT and soon moved into data management (away from paper) via several acquisitions. Data centres are a strong revenue generator and also moving into de-commissioning old work computers (to protect sensitive data on them). It's taken a while to turnaround, but last year they started to gel. Earnings grew 14% in 2021 and shares rallied 77% after. Now, they have over 25 million customers. Shares peaked in April, then tanked in the summer. Pays a 5.2% dividend yield, but it competes with 4.5% from 2-year treasuries 9s bond yield rise). Storage accounts for 64% of revenues, 36% from service. They target for 2025 $7.3 billion in revenues ($4.5 billion in 2021) which he finds possible. Valuation is cheap. Buy.
BUY
Down 3% this year. A REIT, they have transitioned into land for data centres. Also run a business that helps other businesses wipe out their old data. Shares pulled back in September after management said it will invest heavily in their ongoing transition. Shares have rebounded since then. Trades at 16x 2023 funds from operation, and pays a 4.9% dividend.
DON'T BUY

He liked it when they were paying a 3-5% dividend yield, but not at the current 2.5%. The stock has had too big a move up.

DON'T BUY

The concern is their exposure to budget cuts--they store paper documents for the US government. Could be a target by DOGE.