What Did You Buy Today?

[divmenow]

Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

[Otter]

(04-17-2020, 11:36 AM)stockguru Wrote: I shorted the SPY but played it a different way and just bought SPDN today. This way I don't have to full with options and will play the bounce from $25 to $33

I like this one and wont get hot hard. At these levels I thought it was worth a shot.

I went with SQQQ today, which is a similar fund geared towards shorting the NASDAQ index. With the TTM P/E on the NASDAQ above where it was on 12/31/2019 heading into a bunch of tech earnings next week, seemed like the right add on the speculative gambling side of the portfolio.

[fenders53]

(04-17-2020, 12:04 PM)Otter Wrote:

(04-17-2020, 11:36 AM)stockguru Wrote: I shorted the SPY but played it a different way and just bought SPDN today. This way I don't have to full with options and will play the bounce from $25 to $33

I like this one and wont get hot hard. At these levels I thought it was worth a shot.

I went with SQQQ today, which is a similar fund geared towards shorting the NASDAQ index. With the TTM P/E on the NASDAQ above where it was on 12/31/2019 heading into a bunch of tech earnings next week, seemed like the right add on the speculative gambling side of the portfolio.

Otter, when you get bored I think we need to launch a "shorting" thread.  On at least one occasion our conversations have caused others to jump in short the market and then get scared and bail literally a day or so later.  That's not how effective hedging is supposed to work.  That's certainly not my goal if I contributed to it.  I think it would be a service to our friends to discuss the many ways to short, and explain the pros and cons.  As you know it can be very simple or extremely complicated.  I'm no pro but I know what I am getting into when I launch a position.

[MikeWa]

(04-17-2020, 12:00 PM)divmenow Wrote: Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

I've been watching IRM for awhile now, but couldn't make my mind about it and pull the trigger.

My understanding is IRM is not a typical data center, but rather a storage facility for physical data, like paper documents, backup tapes and so on. Most companies will send their backup tapes off-site for a secure storage in case of a disaster, but not sure about paper storage. There must be some legal requirements for certain businesses and certain records to be stored as paper documents for a number of years, I am just not sure if the demand for this type of storage will grow.
Also with most companies moving their applications and data to the cloud, demand for offsite storage of digital media may decrease with time as well.

[fenders53]

(04-17-2020, 12:14 PM)MikeWa Wrote:

(04-17-2020, 12:00 PM)divmenow Wrote: Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

I've been watching IRM for awhile now, but couldn't make my mind about it and pull the trigger.

My understanding is IRM is not a typical data center, but rather a storage facility for physical data, like paper documents, backup tapes and so on. Most companies will send their backup tapes off-site for a secure storage in case of a disaster, but not sure about paper storage. There must be some legal requirements for certain businesses and certain records to be stored as paper documents for a number of years, I am just not sure if the demand for this type of storage will grow.
Also with most companies moving their applications and data to the cloud, demand for offsite storage of digital media may decrease with time as well.

I enjoy the back and forth here rather than IRM,MMM,KO buy,buy buy.  I've looked at IRM as well.  Paper document storage probably will exist for 50 years, but can you make any real money providing that service?  I have no clue.  I have built a half dozen computers from scratch but I sure as hell don't know how to value the business aspects of the components.  I hate it because tech will obviously outperform until we die.  Maybe that's why they make tech ETFs for people like me?

[Otter]

(04-17-2020, 12:11 PM)fenders53 Wrote:

(04-17-2020, 12:04 PM)Otter Wrote:

(04-17-2020, 11:36 AM)stockguru Wrote: I shorted the SPY but played it a different way and just bought SPDN today. This way I don't have to full with options and will play the bounce from $25 to $33

I like this one and wont get hot hard. At these levels I thought it was worth a shot.

I went with SQQQ today, which is a similar fund geared towards shorting the NASDAQ index. With the TTM P/E on the NASDAQ above where it was on 12/31/2019 heading into a bunch of tech earnings next week, seemed like the right add on the speculative gambling side of the portfolio.

Otter, when you get bored I think we need to launch a "shorting" thread.  On at least one occasion our conversations have caused others to jump in short the market and then get scared and bail literally a day or so later.  That's not how effective hedging is supposed to work.  That's certainly not my goal if I contributed to it.  I think it would be a service to our friends to discuss the many ways to short, and explain the pros and cons.  As you know it can be very simple or extremely complicated.  I'm no pro but I know what I am getting into when I launch a position.

Could do, and we could have plenty of discussion about roll yield (contango, backwardation), and how put option premiums respond to VIX, all the greek letters, etc., but it would all boil down to a single rule:

1. This is gambling. Only risk what you are willing to lose. The majority of options contracts expire worthless.

[fenders53]

(04-17-2020, 12:29 PM)Otter Wrote:

(04-17-2020, 12:11 PM)fenders53 Wrote:

(04-17-2020, 12:04 PM)Otter Wrote:

(04-17-2020, 11:36 AM)stockguru Wrote: I shorted the SPY but played it a different way and just bought SPDN today. This way I don't have to full with options and will play the bounce from $25 to $33

I like this one and wont get hot hard. At these levels I thought it was worth a shot.

I went with SQQQ today, which is a similar fund geared towards shorting the NASDAQ index. With the TTM P/E on the NASDAQ above where it was on 12/31/2019 heading into a bunch of tech earnings next week, seemed like the right add on the speculative gambling side of the portfolio.

Otter, when you get bored I think we need to launch a "shorting" thread.  On at least one occasion our conversations have caused others to jump in short the market and then get scared and bail literally a day or so later.  That's not how effective hedging is supposed to work.  That's certainly not my goal if I contributed to it.  I think it would be a service to our friends to discuss the many ways to short, and explain the pros and cons.  As you know it can be very simple or extremely complicated.  I'm no pro but I know what I am getting into when I launch a position.

Could do, and we could have plenty of discussion about roll yield (contango, backwardation), and how put option premiums respond to VIX, all the greek letters, etc., but it would all boil down to a single rule:

1. This is gambling. Only risk what you are willing to lose. The majority of options contracts expire worthless.

You can short without buying options.  I don't consider hedging in moderation as gambling if you are protecting a large long portfolio.  Going long is gambling too unless you happen to know how the next decade is going to turn out.  That was the point of my suggestions we do a thread.

[divmenow]

(04-17-2020, 12:14 PM)MikeWa Wrote:

(04-17-2020, 12:00 PM)divmenow Wrote: Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

I've been watching IRM for awhile now, but couldn't make my mind about it and pull the trigger.

My understanding is IRM is not a typical data center, but rather a storage facility for physical data, like paper documents, backup tapes and so on. Most companies will send their backup tapes off-site for a secure storage in case of a disaster, but not sure about paper storage. There must be some legal requirements for certain businesses and certain records to be stored as paper documents for a number of years, I am just not sure if the demand for this type of storage will grow.
Also with most companies moving their applications and data to the cloud, demand for offsite storage of digital media may decrease with time as well.

While many view paper storage as an "old" and "dying" industry, for many companies storing old data is essential and sometimes compelled by law. Converting records to digital is extremely expensive and even destroying records is expensive relative to storing them. So there is a big need for this. Their document storage segment of the business has little competition and high cash flow generation to feed expansion.

And they just started getting into data center industry. They provide secure, compliant data centers with efficient access to top carriers, cloud and IT services providers. Easily access cloud, telecom, and IT services providers. Plus, make remote management efficient with our software and smart hands.

[Binary]

(04-17-2020, 12:36 PM)divmenow Wrote:

(04-17-2020, 12:14 PM)MikeWa Wrote:

(04-17-2020, 12:00 PM)divmenow Wrote: Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

I've been watching IRM for awhile now, but couldn't make my mind about it and pull the trigger.

My understanding is IRM is not a typical data center, but rather a storage facility for physical data, like paper documents, backup tapes and so on. Most companies will send their backup tapes off-site for a secure storage in case of a disaster, but not sure about paper storage. There must be some legal requirements for certain businesses and certain records to be stored as paper documents for a number of years, I am just not sure if the demand for this type of storage will grow.
Also with most companies moving their applications and data to the cloud, demand for offsite storage of digital media may decrease with time as well.

While many view paper storage as an "old" and "dying" industry, for many companies storing old data is essential and sometimes compelled by law. Converting records to digital is extremely expensive and even destroying records is expensive relative to storing them. So there is a big need for this. Their document storage segment of the business has little competition and high cash flow generation to feed expansion.

And they just started getting into data center industry. They provide secure, compliant data centers with efficient access to top carriers, cloud and IT services providers. Easily access cloud, telecom, and IT services providers. Plus, make remote management efficient with our software and smart hands.

I started to look closer, but the debt level scared me off. Free cash flow doesn't cover the dividend, how do they pay? That was a red flag for me.

[stockguru]

(04-17-2020, 12:58 PM)Binary Wrote:

(04-17-2020, 12:36 PM)divmenow Wrote:

(04-17-2020, 12:14 PM)MikeWa Wrote:

(04-17-2020, 12:00 PM)divmenow Wrote: Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

I've been watching IRM for awhile now, but couldn't make my mind about it and pull the trigger.

My understanding is IRM is not a typical data center, but rather a storage facility for physical data, like paper documents, backup tapes and so on. Most companies will send their backup tapes off-site for a secure storage in case of a disaster, but not sure about paper storage. There must be some legal requirements for certain businesses and certain records to be stored as paper documents for a number of years, I am just not sure if the demand for this type of storage will grow.
Also with most companies moving their applications and data to the cloud, demand for offsite storage of digital media may decrease with time as well.

While many view paper storage as an "old" and "dying" industry, for many companies storing old data is essential and sometimes compelled by law. Converting records to digital is extremely expensive and even destroying records is expensive relative to storing them. So there is a big need for this. Their document storage segment of the business has little competition and high cash flow generation to feed expansion.

And they just started getting into data center industry. They provide secure, compliant data centers with efficient access to top carriers, cloud and IT services providers. Easily access cloud, telecom, and IT services providers. Plus, make remote management efficient with our software and smart hands.

I started to look closer, but the debt level scared me off. Free cash flow doesn't cover the dividend, how do they pay? That was a red flag for me.

IRM is good little company. I bought  a few times this month. My thinking is that with all of the volumes of paperwork and information coming out of the government's efforts to boost the economy, IRM will pick up a lot of this business. Think about all the bank documents (loans, modifications, etc), unemployment files and data, information about restructured companies, etc. They need to house this stuff somewhere. I liken IRM to Self Storage warehouses. They get busy when our lives get upended (divorce, lost jobs, lost house, death, people moving around).

They are in the sweet spot. 

[MikeWa]

(04-17-2020, 12:36 PM)divmenow Wrote:

(04-17-2020, 12:14 PM)MikeWa Wrote:

(04-17-2020, 12:00 PM)divmenow Wrote: Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

I've been watching IRM for awhile now, but couldn't make my mind about it and pull the trigger.

My understanding is IRM is not a typical data center, but rather a storage facility for physical data, like paper documents, backup tapes and so on. Most companies will send their backup tapes off-site for a secure storage in case of a disaster, but not sure about paper storage. There must be some legal requirements for certain businesses and certain records to be stored as paper documents for a number of years, I am just not sure if the demand for this type of storage will grow.
Also with most companies moving their applications and data to the cloud, demand for offsite storage of digital media may decrease with time as well.

While many view paper storage as an "old" and "dying" industry, for many companies storing old data is essential and sometimes compelled by law. Converting records to digital is extremely expensive and even destroying records is expensive relative to storing them. So there is a big need for this. Their document storage segment of the business has little competition and high cash flow generation to feed expansion.

And they just started getting into data center industry. They provide secure, compliant data centers with efficient access to top carriers, cloud and IT services providers. Easily access cloud, telecom, and IT services providers. Plus, make remote management efficient with our software and smart hands.

Somehow I don't see this as a very successful enterprise.  There is a lot of competition already and many companies move to the cloud.  I've seen companies closing down and selling their datacenters or moving out from a rental space in commercial datacenters. Company can connect directly to the cloud provider and their circuit providers like Verizon or ATT have already redundant connections to cloud providers. There is no need for another datacenter in the middle. 
As far as physical material storage provider,  like paper or backup tapes, I think they will continue to be successful.  Just don't see this as a groving business.

[fenders53]

(04-17-2020, 10:02 PM)MikeWa Wrote:

(04-17-2020, 12:36 PM)divmenow Wrote:

(04-17-2020, 12:14 PM)MikeWa Wrote:

(04-17-2020, 12:00 PM)divmenow Wrote: Took a large position in IRM today. That just made it to my 6th largest holding now.

Data center reits are the way of the future. Although data is just a small portion of what the company does, they will grow that unti over time.

I think anything below $25 is a steal

I've been watching IRM for awhile now, but couldn't make my mind about it and pull the trigger.

My understanding is IRM is not a typical data center, but rather a storage facility for physical data, like paper documents, backup tapes and so on. Most companies will send their backup tapes off-site for a secure storage in case of a disaster, but not sure about paper storage. There must be some legal requirements for certain businesses and certain records to be stored as paper documents for a number of years, I am just not sure if the demand for this type of storage will grow.
Also with most companies moving their applications and data to the cloud, demand for offsite storage of digital media may decrease with time as well.

While many view paper storage as an "old" and "dying" industry, for many companies storing old data is essential and sometimes compelled by law. Converting records to digital is extremely expensive and even destroying records is expensive relative to storing them. So there is a big need for this. Their document storage segment of the business has little competition and high cash flow generation to feed expansion.

And they just started getting into data center industry. They provide secure, compliant data centers with efficient access to top carriers, cloud and IT services providers. Easily access cloud, telecom, and IT services providers. Plus, make remote management efficient with our software and smart hands.

Somehow I don't see this as a very successful enterprise.  There is a lot of competition already and many companies move to the cloud.  I've seen companies closing down and selling their datacenters or moving out from a rental space in commercial datacenters. Company can connect directly to the cloud provider and their circuit providers like Verizon or ATT have already redundant connections to cloud providers. There is no need for another datacenter in the middle. 
As far as physical material storage provider,  like paper or backup tapes, I think they will continue to be successful.  Just don't see this as a growing business.

When I researched it I noticed no significant organic revenue growth.  It's probably negative in reality.  All growth has been through expansion.  That isn't necessarily a wrong strategy, but that debt has increased every year for a long time.  It exceeds market cap by a margin.  I don't understand the cloud well enough to assess it from that perspective, and obviously that is important.