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Sally Jones
Sally Jones
Articles (580) 

Six Gurus Shred IRM - Iron Mountain Update

November 22, 2013 | About:

The top guru stakeholder of Iron Mountain, Chris Davis, recently reduced his position, according to GuruFocus Real Time Picks. Additionally, six billionaires sold out their holdings in Iron Mountain Inc. (NYSE:IRM) as of the third quarter of 2013, and the insiders are very active, buying and selling.

Making recent acquisitions to grow in emerging markets, Iron Mountain is a global storage and information management company. The company stores and protects billions of information assets, including business documents, backup tapes, electronic files and medical data. The company’s customer base includes commercial, legal, banking, health care, accounting, insurance, entertainment and government organizations.

Iron Mountain Inc. (NYSE:IRM)

Down 12% over 12 months, Iron Mountain Inc. has a market cap of 5.46 billion; its shares were traded at around $28.56 with a P/E ratio of 69.70. The dividend yield is 3.78%.

The company reported financial results for the third quarter of 2013 with revenue of $756 million, up from $748 million in the same quarter of 2012. Iron Mountain reported adjusted OIBDA at $240 million in the third quarter, down from the prior-year quarter at $244 million. The third quarter 2013 adjusted EPS of $0.03 per share (GAAP) was also down from the year-ago quarter at $0.31 (GAAP). Year-to-date revenue is $2.25 billion, up slightly from $2.24 billion in third quarter of 2012.

In October, Iron Mountain bought Cornerstone Records Management, another records storage and data protection company for $191 million. According to a company press release, the Cornerstone deal follows other recent acquisitions of similar companies in Colombia and Peru. Iron Mountain has completed acquisitions valued at approximately $320 million in 2013. The company is also utilizing Paragon Solutions, an advisory consulting and systems integration firm, to be able to advise clients about managing their electronic records.

GuruFocus currently ranks Iron Mountain with 3 out of 5 stars for Business Predictability.

Iron Mountain has a real estate network of 64 million square feet across nearly 1,000 facilities in 36 countries. The company operates in five segments: North American Physical Business, Worldwide Digital Business, Europe, Latin America and Asia Pacific.

Track share pricing, revenue and net income:


Real Time Guru Action: As of Nov. 18, 2013, Chris Davis reduced his IRM position by 1.91%, selling 72,606 shares at an average price of $27.48 per share, gaining 3.9%.

This trade follows his third quarter reduction as of Sept. 30, 2013, when Chris Davis reduced his position by 51.23%, selling 6,628,314 shares at an average price of $64.10, for a gain of 8.2%.

Davis has averaged a gain of 5% on 4,832,586 shares bought at an average price of $27.11. Selling, Davis has averaged a loss of 8% on 35,605,922 shares at an average price of $30.88.

His current shares are 9,501,649 or 4.97% of shares outstanding.

Third Quarter Guru Action: As of Sept. 30, 2013, John Burbank and Steve Cohen made new buys. John Burbank bought 321,273 shares at the average price of $27.48, for a gain of 4%. After selling out four times over five years, Steven Cohen bought 6,100 shares at the average price of $27.48, for a gain of 4%.

The second largest guru stakeholder RS Investment Management increased its position by 4.94%. The firm has averaged a loss of 9% buying 2,485,649 shares at an average price of $31.29 per share. The firm currently holds 2,485,649 shares or 1.3% of shares outstanding.

Jim Simons decreased his position by 3.47%, selling 71,400 shares at an average price of $27.48 for a gain of 3.9%. Overall, he has averaged a loss of 12%, buying 2,439,211 shares at an average price of $32.58 per share. Selling 453,500 shares at an average price of $30.22 per share, he averaged a loss of 5%. Jim Simons currently holds 1,985,711 shares or 1.04% of shares outstanding.

Pioneer Investments was one of six gurus selling out IRM in the third quarter of 2013. Pioneer sold 80,500 shares at $27.48, for a gain of 3.9%.

Check out the insiders buying and selling IRM.

Read more about Chris Davis’ third quarter trading.

As of the third quarter, the Davis Selected Advisers portfolio lists 181 stocks, 17 of them new, a total value at $38.52 billion, with a quarter-over-quarter turnover of 3%. The portfolio is weighted with top three sectors: financial services at 39.2%, consumer defensive 12.1% and technology at 1 2%.

Here is the complete portfolio of Guru Chris Davis.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.3/5 (3 votes)


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