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Strategies & Market Trends : Value Investing
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To: Harshu Vyas who wrote (72952)6/15/2023 4:55:49 PM
From: Paul Senior  Read Replies (1) of 78751
 
DLR. I relooked and reconsidered. The company provides a service that is necessary. The debt though really is so high that I have to wonder how they might muddle through with it all. Maybe it's a matter of increasing revenue -- charge more for new customers (assuming they get enough new customers) and/or charging more when current customers renew agreements.

There's a metric in here somewhere: What mulltiple of operating cash flow is reasonable to manage and sustain a level of debt or enterprise value? I've an idea what that max number might be, and it does look like DLR exceeds it.

Since the stock is up from where I bought it - with no additional positive news from the company that I see - that's something I consider now too. Perhaps as the media reported, the upward more is really AI related. Something that might not be positive for DLR for quite a while. Something not sustaining the stock price.

I'm going to sell my position (but keep a most miniscule stub). I believe you're more right in your conclusions and doubts about the company than I have been in my positive view. Many hanks for bringing DLR and your analysis back to my attention. Much appreciated.

====
Thanks for the kind words too about having respect for my investment experience. We old geezers appreciate some acknowlegement sometimes. -g-
I laughed when I the read my name was associated with "investment success". Ha. Yeah...maybe not so much success, but at least I'm still in the game.
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