Trade-Ideas LLC identified

Iron Mountain

(

IRM

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Iron Mountain as such a stock due to the following factors:

  • IRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.0 million.
  • IRM has traded 632,013 shares today.
  • IRM traded in a range 324.6% of the normal price range with a price range of $2.46.
  • IRM traded below its daily resistance level (quality: 468 days, meaning that the stock is crossing a resistance level set by the last 468 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on IRM:

TheStreet Recommends

Iron Mountain Incorporated, a real estate investment trust, provides storage and information management services in North America, Europe, Latin America, and the Asia Pacific. The stock currently has a dividend yield of 6.5%. IRM has a PE ratio of 1. Currently there are 4 analysts that rate Iron Mountain a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Iron Mountain has been 1.7 million shares per day over the past 30 days. Iron Mountain has a market cap of $6.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.37 and a short float of 7.7% with 7.19 days to cover. Shares are down 28.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Iron Mountain as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $174.23 million or 24.48% when compared to the same quarter last year. In addition, IRON MOUNTAIN INC has also modestly surpassed the industry average cash flow growth rate of 15.86%.
  • The gross profit margin for IRON MOUNTAIN INC is rather high; currently it is at 57.05%. Regardless of IRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IRM's net profit margin of 7.01% is significantly lower than the industry average.
  • IRM, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, IRON MOUNTAIN INC's return on equity exceeds that of both the industry average and the S&P 500.
  • IRON MOUNTAIN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, IRON MOUNTAIN INC increased its bottom line by earning $1.69 versus $0.52 in the prior year. For the next year, the market is expecting a contraction of 28.9% in earnings ($1.20 versus $1.69).

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