CoreSite: Data Centers and Internet Royalties

06/01/2017 2:52 am EST

Focus: REITS

Briton Ryle

Editor, The Wealth Advisory

CoreSite (COR)  has paid over $100 million in “Internet Royalties” to investors since we first bought shares three years ago, asserts Brit Ryle, editor of The Wealth Advisory.

That’s 13 payments in total. And they’ve averaged over $14.3 million each time. The most recent payout was over $27 million!

What’s even better is that they’ve kept growing the whole time we’ve been invested. And that growth is picking up speed.

And management is far from done giving us “royalty” raises. We can expect another one to come in a few short months. Seven to be exact. I expect we’ll see another pay hike by this December.

That’s because cloud computing, the Internet of Things (IoT), and big data are going to keep growing for a long time. And companies are going to need more and more data center space. That is if they hope to keep up with growing consumer demand.

That puts CoreSite in an optimum position. The company is the leader in this field. And it’s the go-to name when a huge internet-based corporation wants to expand.

That’s because CoreSite still controls the most valuable real estate in the data center industry. The company already has data centers at all the major internet hubs. And it has extra property near them to expand even more.

That whopping three-year 129% increase in our “royalty” payments isn’t the only growth we’ve seen. We’ve gotten to watch CoreSite grow revenue by nearly 50% over that time, too.

The other thing growing? Well, that’s the share price. Our initial target price was $42 just three years ago. Now, it’s $125.

And we’re still recommending it. This stock still has potential to give you a 25% or better return every year for many years to come.

Now that we’ve seen it break through the $100 resistance level, there’s nothing to stop it from doubling in price yet again. CoreSite is still a growth stock, and it’s most definitely still a “Buy.”

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