Thursday, October 26, 2006

Trade Ideas: IRM

The rally marches on - although on a percentage basis there was little change to previous days gains, from the point of buying individual stocks there was a more substantial increase; the Trade Ideas scan took just 1 minute to come up with 8 stocks - better than previous days.

The only stock to dominate the buying was W.R. Berkley (BER) at 43 appearances over the course of the day. But beyond that, there wasn't much pushing above 20 appearances. I have gone for Iron Mountain (IRM) which came in at the 20 appearance mark.

The stock has come off a small bullish flag, closing Thursday at a new reaction high. Resistance remains a factor at $43.62, but the new up swing is helped by the early October "Golden Cross" between the 50-day and 200-day MAs. Stops can go on a loss of $41 (although my chart shows a stop for $40 support - either one will do depending on your risk threshold). October's action has the look of a 'handle', part of an 8-month base (see a weekly chart). The projected target for this base is around $65.

Iron Mountain Incorporated, through its subsidiaries, provides information protection and storage services in North America, South America, Australia, New Zealand, and the Pacific Rim. The company offers records management and data protection services. Its records management services include records management program development and implementation; implementation of policy-based programs that feature secure storage for media, including paper, flexible retrieval access, and retention management; digital archiving services for electronic records; secure shredding services for record custody; and specialized services for vital records, as well as for film and sound, healthcare, energy, and financial services industries. The company’s data protection services include disaster preparedness planning support; secure, off-site vaulting of data backup media for data recovery in the event of a disaster, human error, or virus; electronic vaulting to provide managed, online data backup and recovery services for personal computers and server data; and intellectual property management services consisting of escrow services to protect and manage source code and other proprietary information and domain name management services. The company also sells storage materials, including cardboard boxes and magnetic media. In addition, it provides consulting, facilities management, fulfillment, and other outsourcing services. The company’s customers include commercial, legal, banking, healthcare, accounting, insurance, entertainment, and government organizations. Iron Mountain was founded in 1951 and is based in Boston, Massachusetts.

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