The Financial Collapse of 2001 Unwinding Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

Recommended by:

elmatador

To: elmatador who wrote (12851)	8/3/2024 2:55:50 PM
From: Elroy Jetson	1 Recommendation of 13781

Iron Mountain (NYSE:IRM) has lately been priced to take advantage of the huge demand for data centers. I was accustomed to the Iron Mountain REIT paying a 5% dividend and couldn't figure out how they could build more data centers without taking on a lot more debt, so I intended to sell. But with study, I've figured out their strategy. IRM is still managed by extremely smart people - which is not typical for "a warehouse REIT". The part of Data Center's that is in short supply is local electrical supply, with a five year waiting list to obtain new transformers from manufacturers to build or expand substations. Iron Mountain currently has 25 data centers and 1,400 warehouse locations around the world. For decades IRM has made great stride in reducing their electrical usage to reduce costs. As a result, almost all of their warehouse locations can greatly expand their electrical usage without making any investment or requiring changes or approval from their local utility, and virtually all of these facilities have current access to high-speed fiber networks. Just add more air-conditioning, and diesel or battery power back-up in their mammoth warehouses and they can greatly increase their revenues and profits. IRM is yet anoher AI/cloud "bubble stock" that's also a value stock rather than an over-priced bubble. With very little cost, no additional debt, and little lead-time Iron Mountain can convert current paper record warehouses, or a portion of each facility into data centers. No wonder the stock has zoomed to the point where the typically 5% dividend is now paying only 2.44% due to the increase in share price. I may still be selling IRM over the next two years to obtain our 358% capital gain paying little in the way of tax - but I'll be immediately buying back the shares. This way in the future I won't feel locked-in and could later sell IRM without facing untoward tax consequences.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next