JCOM Targets: $40 Near Term,
$27 within One Year,
Single Digits Long Term
Note to Readers:
Citron has spent considerable time and effort to prepare this story. We suggest you take your time, read the analysis and supporting documents, and make your own informed investing decision. The work is compelling, and we are confident in our conclusions. But read before you trade!
For years j2 Global (NASDAQ:JCOM) has been a darling of Wall Street and a nemesis for short sellers. The company has spun a high-tech story of “cloud computing”, digital media, and mergers and acquisitions. All the while, it is being funded by its legacy, consumer very-unfriendly eFax business.
That is the story they want you to hear.
The real story, exposed here for the first time, is a company spending a billion on a roll-up strategy with negative organic growth. J2 has been buying money-losing commoditized cloud computing companies, combining them with a non-performing digital media strategy to inflate its top line, as EBIDTA runs in place.
This story is such a perfect example of the distortion of Wall Street’s sell-side research system, Citron’s editor Andrew Left has posted a video explaining a few key points in his own words.