Public Storage (NYSE:PSA)

lowellfield (95.89) Submitted: 6/30/2008 12:40:18 PM : Start Price: $71.29 PSA Score: -80.96

Macro downturn will make people move less, lowering demands for storage. This may already be reflected in their slowing growth and declining margins. Also not crazy about the preferred-intensive capital structure, and a little suspicious that management is greedier than most (As Citi analyst pointed out on 1Q08 call, they paid themselves $25m for flipping half of the Shurgard acquisition they just made in 2006. That deal must have created lots of shareholder value, huh?) Plus there's a major premium to competitors, due probably to the fact that their balance sheet looks pretty clean unless you consider the 7% yielding preferred to be kinda debt-ish.