What Did You Buy Today?

[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.