A Number of Analysts Out in Defense of JCOM
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Price: $142.84 --0%
Rating Summary:
9 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 3 | New: 8
Rating Summary:
9 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 3 | New: 8
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As expected (see 03/29 reports), a number of analyst are out in defense of j2 Global Communications (Nasdaq: JCOM) after yesterday's slashing related speculation of a new telephone line tax.
The William Blair analyst said, "investment merits and risks have not changed measurably, near- and intermediate-term outlook remain solid with increasing growth from enterprise and int'l markets and valuation remains as compelling as ever".
The Stanford Group analyst said, "We believe that the stock price overreacted to this news for several reasons: 1. The relevant policy recommendation was but one of several alternatives outlined to shore up the USF (the least palatable to JCOM, to be sure); 2. Implementation of ANY changes to the funding methodologies of the USF are a minimum of a year away, if not longer (in our opinion), giving the Company time to react - and it has several alternatives; and 3. The surcharge fee amount included in the report ($1 per phone line), while mentioned in several places by different sources, is somewhat arbitrary, meant to achieve a round example figure for total revenue impact, and assumes a complete tossing-out of the current system.
The Jefferies analyst said, "changes have been in talks for over 3 years and its only one of four options in consideration. The firm feels JCOM can easily pass some of these fees onto its customers should this fee be added to phone numbers"
The William Blair analyst said, "investment merits and risks have not changed measurably, near- and intermediate-term outlook remain solid with increasing growth from enterprise and int'l markets and valuation remains as compelling as ever".
The Stanford Group analyst said, "We believe that the stock price overreacted to this news for several reasons: 1. The relevant policy recommendation was but one of several alternatives outlined to shore up the USF (the least palatable to JCOM, to be sure); 2. Implementation of ANY changes to the funding methodologies of the USF are a minimum of a year away, if not longer (in our opinion), giving the Company time to react - and it has several alternatives; and 3. The surcharge fee amount included in the report ($1 per phone line), while mentioned in several places by different sources, is somewhat arbitrary, meant to achieve a round example figure for total revenue impact, and assumes a complete tossing-out of the current system.
The Jefferies analyst said, "changes have been in talks for over 3 years and its only one of four options in consideration. The firm feels JCOM can easily pass some of these fees onto its customers should this fee be added to phone numbers"
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