Iron Mountain, Inc. (NYSE:IRM)

Dominant position in document management space, solid margins, stable recurring revenues, decent forward price multiples. Outperform all the way.

Iron Mountain will do extremely well. As US healthcare converts to EMR in the setting of HIPPA, their services will be in demand. They shred and discard confidential paper information. They are everywhere I turn in the hospitals and offices. They will be even more in demand in Europe. Iron Mountain has this market wrapped up and confidently stored ;-)

Berkshire Hathaway just dumped it.

i agree with warren

undervalued

Following WEB Stock has taken a beating lately, might be a good entry point. Overall ecomony continues to be sensitive to bad news and investors are scared growth is years away. Market seems to be confirming this outlook.

As of Q1 2010, Buffet is accumulating IRM. Seems like it might have a slight edge on the S&P.

Warren Buffet buy

Steady grower. Nice track record. Good business.

Information ALWAYS has to be stored.

Why do they call it Iron Mountain?

Because "Plastic Trashcan" just didn't have the same ring to it.

Overpaying a company to haul off your documents will be recognized as such by clever corporate management looking to reduce costs. As a hedge, try Office Depot - they sell something called "a shredder".

Expect a slowdown in the growth rate and the profitability here.

Stock is down sharply from 52 week high, largely based on 1 quarterly earnings miss. Revenue growth is on target and this company is largely recession proof.

I know the name, I know the brand, I work for the gov't and we use them. They will rebound.

Negative:

1. Company appears to be lagging behind in electronic data storage, which will likely prove to be a significant long-term problem. EDS purchased by HPQ is the beginning. Expect the other 100 pound gorillas of tech to follow.

2. All the other consulting/value add services will come under increased competition in the longer-term due to large multinationals focusing in on services.

3. Limited resources to compete against larger more established competitors.

Positives:

1. Short-term they should be all right, since some of their niches are hospitals, governments organizations, accounting, legal, insurance, etc. However, even the US govt & hospitals, while about 15-30 years behind the Silicon Valley will one day figure it out and go digital (sometimes I'm not sure though).

2. Have established a good brand, serious continued reorganization is needed though.

3. Buffet.

This stock hit it's valley a couple weeks ago and is starting to gain strength. Invest in preventing ID theft...Solid

it's taken a hit over the last few months, but they are in the middle of a company re-org. that should cut costs

Fair Value Estimate

$31.00

Consider Buying

$26.40

Consider Selling

$40.70

Aggressive acquisition strategy. Dominant leader in its industry. Great reoccurring revenue business model.

High cost for competitors to enter the fray, high cost for businesses to switch to a new vendor as well. Good long-term clients and new growth in Europe.