Short sellers circle Iron Mountain - trades around $IRM and data center REITs

Today we are looking at Iron Mountain $IRM after a short selling partnership led by Gotham City Research and General Industrial Partners revealed a short position in the data center focused REIT. They argue that Iron Mountain’s heavy, leveraged spending on data centers is not supported by its long term funding capacity, and the shares dropped about 5 percent on the news.

Winners

Category 1 – Bearish trades on leveraged data center REITs

Names: Iron Mountain ($IRM), Digital Realty Trust ($DLR), Equinix ($EQIX)

Reason: The short report is a direct catalyst for downside trades in $IRM via outright shorts or puts. It can also trigger sympathy selling in other capital intensive data center REITs like $DLR and $EQIX if inves ...