Daily Journal (DJCO)

What Moves the Stock

1. 01New Journal Technologies contract wins with state/county court systems (contract size and implementation timeline)
2. 02Software revenue growth rate and shift toward recurring maintenance revenue vs. implementation
3. 03Investment portfolio performance and disclosed equity holdings (historically Alibaba, Bank of America, Wells Fargo positions)
4. 04Gross margin expansion in software division as recurring revenue mix increases
5. 05Government IT budget trends and digital transformation initiatives in judicial systems
6. 06Journal Technologies software (court case management systems, e-filing platforms) - estimated 60-70% of revenue
7. 07Traditional newspaper publishing (legal notices, public announcements) - estimated 20-30% of revenue
8. 08Investment income and realized gains from equity portfolio - variable contribution

DJCO Chart

My Notes

• value - The stock attracts value investors focused on (1) software business trading below peers despite 25% revenue growth…
• Rising rates have mixed impact: (1) Negative for valuation multiples on high-growth software businesses…
• Watch on earnings: Journal Technologies quarterly revenue growth rate and year-over-year comparison, Software backlog and new contract signings with government agencies (number and total contract value), Gross margin trend in software division (target 50%+ as maintenance revenue scales).