Why Iron Mountain Is Overvalued And Its Dividend Is Risky [View article]
I agree with the comments mentioned. The author's analysis is not necessarily wrong. Taking out the more recent two year activities (estimating here) of Iron Mountain the dividends are not sustainable. When these activities are added into the analysis, the increased payouts are part of the conversion process in order to obtain the REIT status. Another consideration is that future dividend payouts may contain a mixture of stock and cash. I would not be surprised if an all stock dividend is paid out at any time period. Now, should the overall market be terrified of such a issuance(a drop in IRM stock), I would refer many to Seth Klarman's synopsis of Telefonos de Mexico, SA in Margin of Safety.
Author's approach will get rid of weak dividend payers and may eke out better averages against other systems over time. It is that I prefer the focused Buffett, concentrated Munger, disciplined Fisher system.
Iron Mountain REIT Conversion Returns Value [View article]
The business cycles in the industry are recession proof with sustainable services which are difficult for customers to switch. Along the lines of Bloomberg and Microsoft products and service space.
Iron Mountain REIT Conversion Returns Value [View article]
Good investing!
Why Iron Mountain Is Overvalued And Its Dividend Is Risky [View article]
Author's approach will get rid of weak dividend payers and may eke out better averages against other systems over time. It is that I prefer the focused Buffett, concentrated Munger, disciplined Fisher system.
Iron Mountain REIT Conversion Returns Value [View article]