The document analyzes J2 Global Communications (JCOM) and finds its stock undervalued. Key reasons for undervaluation are embedded expectations that JCOM's core eFax business is declining, lack of belief in management's ability, and skepticism around cash usage. However, the analysis identifies catalysts that could drive the stock price up, including continued ROI growth exceeding expectations, strategic fit of recent acquisitions, and understanding that eFax remains innovative in new markets.
Monetary worth calculation is one of the major strategy for business growth. Business valuation is used to determine the economic worth of a business. The aim behind this presentation is to let readers know about different things in which business valuation can be utilized and the various types of business valuation methods.
http://www.authorstream.com/Presentation/transitionequity-3785202-widely-adopted-methods-business-valuation/
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
Three major business valuation methods that A Business Valuator will use to tabulate a fair price for your business are market value, asset-based and ROI-based business valuation methods. They all have the same objective of determining the current values of your company.
Corporate Valuations “Techniques & Application”: A compilation of research oriented valuation articles.
Contents: Business valuation, Relative valuation, Sum of the parts valuation and value creation, ESOP valuation, Discounted Cash Flow Valuation, Enterprise Valuation etc.
Introduction to Business Valuation, Fair Market Value, reasons and elements of business valuation, methodologies of business valuation, case study on net asset value.
Monetary worth calculation is one of the major strategy for business growth. Business valuation is used to determine the economic worth of a business. The aim behind this presentation is to let readers know about different things in which business valuation can be utilized and the various types of business valuation methods.
http://www.authorstream.com/Presentation/transitionequity-3785202-widely-adopted-methods-business-valuation/
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
Three major business valuation methods that A Business Valuator will use to tabulate a fair price for your business are market value, asset-based and ROI-based business valuation methods. They all have the same objective of determining the current values of your company.
Corporate Valuations “Techniques & Application”: A compilation of research oriented valuation articles.
Contents: Business valuation, Relative valuation, Sum of the parts valuation and value creation, ESOP valuation, Discounted Cash Flow Valuation, Enterprise Valuation etc.
Introduction to Business Valuation, Fair Market Value, reasons and elements of business valuation, methodologies of business valuation, case study on net asset value.
Company Valuation PowerPoint Presentation Slides SlideTeam
Get ready-made Company Valuation PowerPoint Presentation Slides to analyse all the profit and net value your business has made. Conduct a thorough evaluation of a company’s management, capital structure, future earning prospects, and more with the help of professionally designed company valuation PPT presentation templates. Determine the current worth of a business and assess all aspects of a business. This deck comprises of several company valuation PowerPoint templates like valuation methodology, valuation steps, company valuation methodologies, determining free cash flow, valuation results, business due-diligence process, strategic due-diligence methodology, and more. Incorporate business valuation PowerPoint slideshow to estimate the selling price of the business. Use business valuation methods PowerPoint techniques for valuing a business asset such as cost approach, cost to build, replacement cost, market approach, discounted cash flow, forecast future cash flow, etc. Grab access to the company valuation complete PowerPoint deck for a business analysis. Employ a few jocular expressions with our Company Valuation Powerpoint Presentation Slides. It helps insert a bit of humor.
There are specific steps to take when preparing a supportable business valuation.
If you need a business valuation and want to make sure that the valuation expert covers all of the bases, you should look at our slides to understand the basics of the valuation process.
Valuation of Private vs. Public Companies. Private company valuations are discounted based on several risk factors associated with private sector investing, which results in a marked difference between the valuation of a privately held company, subsidiary or a division and a publicly traded corporation.
Measure What Matters - New Perspectives on Portfolio SelectionUMT
Stock market investors articulate their goals explicitly or implicitly by following the philosophy and methodology of a market expert that fits their investment objectives and appetite for risk. For example, for value and income stocks they may rely on the research conducted by Wharton finance professor Jeremy Siegel¹ or read up on market pros like War-ren Buffet. Much like the stock market investor, companies investing in change face similar challenges when considering where to allocate budget and resources to meet financial and strategic objectives.
This course will take you through the process of a typical business valuation engagement, from scoping the work to ultimately arriving at a conclusion of value. Through a case study, we will address fundamental issues including valuation approaches (asset, income and market), normalizing analysis and valuation discounts.
Demonstrating Good Ethics in Business Valuation Modeling Ralph Colucci, CFA
Summary presentation, which provides an overview of navigating thru the sometimes troubled waters of corporate finance and valuation consulting with good ethical behavior in an influential business world.
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Valuation Principles & Techniques in Ind AS at a seminar organised by Gurgaon Branch of ICAI on 3rd September, 2016.
IndAS113 prescribes Fair Valuation definition, Techniques, Application and its Hierarchy. About 75% of the Balance Sheet Size is expected to change due to Fair Value Accounting (#IndAS109 #Financial Instruments, #IndAS102 #Share based payments, #IndAS16 Property Plant Equipments (PPE), #IndAS103 #Business combination etc. shall be impacted using #FairValue. Time to get ready, Plan Prepare and Align with the new requirements...
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Company Valuation PowerPoint Presentation Slides SlideTeam
Get ready-made Company Valuation PowerPoint Presentation Slides to analyse all the profit and net value your business has made. Conduct a thorough evaluation of a company’s management, capital structure, future earning prospects, and more with the help of professionally designed company valuation PPT presentation templates. Determine the current worth of a business and assess all aspects of a business. This deck comprises of several company valuation PowerPoint templates like valuation methodology, valuation steps, company valuation methodologies, determining free cash flow, valuation results, business due-diligence process, strategic due-diligence methodology, and more. Incorporate business valuation PowerPoint slideshow to estimate the selling price of the business. Use business valuation methods PowerPoint techniques for valuing a business asset such as cost approach, cost to build, replacement cost, market approach, discounted cash flow, forecast future cash flow, etc. Grab access to the company valuation complete PowerPoint deck for a business analysis. Employ a few jocular expressions with our Company Valuation Powerpoint Presentation Slides. It helps insert a bit of humor.
There are specific steps to take when preparing a supportable business valuation.
If you need a business valuation and want to make sure that the valuation expert covers all of the bases, you should look at our slides to understand the basics of the valuation process.
Valuation of Private vs. Public Companies. Private company valuations are discounted based on several risk factors associated with private sector investing, which results in a marked difference between the valuation of a privately held company, subsidiary or a division and a publicly traded corporation.
Measure What Matters - New Perspectives on Portfolio SelectionUMT
Stock market investors articulate their goals explicitly or implicitly by following the philosophy and methodology of a market expert that fits their investment objectives and appetite for risk. For example, for value and income stocks they may rely on the research conducted by Wharton finance professor Jeremy Siegel¹ or read up on market pros like War-ren Buffet. Much like the stock market investor, companies investing in change face similar challenges when considering where to allocate budget and resources to meet financial and strategic objectives.
This course will take you through the process of a typical business valuation engagement, from scoping the work to ultimately arriving at a conclusion of value. Through a case study, we will address fundamental issues including valuation approaches (asset, income and market), normalizing analysis and valuation discounts.
Demonstrating Good Ethics in Business Valuation Modeling Ralph Colucci, CFA
Summary presentation, which provides an overview of navigating thru the sometimes troubled waters of corporate finance and valuation consulting with good ethical behavior in an influential business world.
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Valuation Principles & Techniques in Ind AS at a seminar organised by Gurgaon Branch of ICAI on 3rd September, 2016.
IndAS113 prescribes Fair Valuation definition, Techniques, Application and its Hierarchy. About 75% of the Balance Sheet Size is expected to change due to Fair Value Accounting (#IndAS109 #Financial Instruments, #IndAS102 #Share based payments, #IndAS16 Property Plant Equipments (PPE), #IndAS103 #Business combination etc. shall be impacted using #FairValue. Time to get ready, Plan Prepare and Align with the new requirements...
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Big Tech winners in 2015 can be identified as FANG (Facebook/Amazon/Netflix/Google) - The new Morgan Stanley Tech theme for 2016: think SMAC (Security/Mobile/Analytics/Cloud)
Discussion 1 Analysis of Financial Statements.A. This discussi.docxfelipaser7p
Discussion 1: Analysis of Financial Statements
.
A. This discussion assignment will allow for the completion of a ratio analysis. It will also provide information that will be useful as you prepare the written report for Assignment 1: Financial Research Report, which is due at the end of Week 9.
Step 1
: Select a publicly-traded company that you will (or might) use for Assignment 1: Financial Research Report, which is due at the end of Week 9.
Step 2
: Locate financial ratio data from Mergent Online. Financial statements, ratios, and other useful information are available from the Mergent Online database that is available through the Strayer University Learning Resource Center (online). Please notice that financial ratios are grouped into appropriate categories (Profitability Ratios, Liquidity Ratios, Debt Management Ratios, and Asset Management Ratios), which makes it easy to set up the ratios and use them in the analysis.
Accessing the Mergent Online Database – Financial Statements for companies, financial ratios, and Form 10K annual reports can be obtained from the Strayer University Learning Resource Center, which is accessible from the Online Classroom (see tab at the top of the screen).
Select – Learning Resource Center
Select – Databases
Select Mergent Online
Then, in the block titled “Company Search – Enter Symbol or Company Name” enter the company’s name or its Stock Ticker Symbol (e.g., for McCormick & Company, enter MKC). Next, select the company from the drop-down menu.
For Financial Statements – Select “Company Financials” tab
For Financial Ratios – Select “Company Financials” tab and “Ratios” sub-tab
For Form 10K Annual Reports – Select “Filings” tab (and then select the most recent Annual Form 10K report)
Step 3
: Enter the financial ratio data into the Financial Ratio Analysis Model (the attached Excel spreadsheet). The data need to be entered into the yellow-coded cells (column is titled “Oldest Year”) progressing to the most recent year on the left (column is titled “Most Recent Year”).
The model presently contains financial information for McCormick & Company (Stock Ticker MKC).
You will note that the Excel spreadsheet model is programmed to identify if each ratio improved or deteriorated over the time period. And, the spreadsheet is programmed to calculate the percentage change in each of the ratios during the same period. This information should be helpful as you prepare your analysis.
(Note: This spreadsheet could be “imported” into the Assignment 1: Financial Research Report due at the end of Week 10.)
Step 4
: Prepare an analysis and discussion of the financial ratio data that are examined in the Financial Ratio Analysis Model. It is always appropriate to include the actual ratio data in the written analysis in addition to its presentation in a table, chart or graph.
(Note: In addition to Mergent, another good source of financial data and company information is:
http://www.advfn.com
.)
B. Fr.
2020 Software Company Benchmark Report - 132 CompaniesKelly Thomas
This is the 2020-1 version. This will be updated regularly throughout the year based on new financials and market cap information.
Benchmark analysis of 132 publicly-traded software companies. Includes growth rates, gross margin, market capitalization, EBITDA, sales and marketing investment, R&D investment, G&A, stock compensation, operating income, revenue per employee, historical analysis, IPO analysis, free cash flow, and cash position, along with market cap correlation analysis and many others.
Talk 'Cinema on Demand' at Lucania Film Festival 2017Alessandro Masi
A talk by Alessandro Masi, Film & TV Business Strategist at FlexyMovies
---
Digital distribution is a growing opportunity for independent filmmakers and is not threatening theatrical exhibition. Cinema consumption is evolving together with technological and sociological changes. Home entertainment is growing but is not replacing the value of theatrical exhibition, with worldwide box office growing steadily. New models such as Premium VOD to access content at home while still in theaters will be enlarging the options for cinema audiences, alongside with SVOD and TVOD in particular, while major studios are pushing for EST and shortening of distribution windows.
The research, final thesis for the MSc in Media Management at Bocconi, aims to define peculiar business models for web TV, still an almost unexplored ground inside the economic theory, despite technological progress and a steady growing audience made it recently so attractive in terms of investments for both entrepreneurs and advertisers.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Sustainability: Balancing the Environment, Equity & Economy
JCOM Strategic Valuation - Report
1. GLOBAL STRATEGIC VALUATION
J2 Global Communications Valuation Analysis
Team 5
Alessandro Masi
Ajay Pal Singh
Bo Liang
Rajat Saxena
Shuai Zhang
Vivek Vemuru
2. Table of Contents
...........................................................................................................Executive
Summary
1
.........................................................Investment
Thesis
(EEA,
Mispricing,
catalyst)
2
........................................................................................EV/IC
scatters
graph
analysis
4
.........................................................................................Macro
and
Thematic
Drivers
4
...............................................Summary
Analysis
of
Cash
Flow
Prime™
Valuation
6
.......................................................................Review
of
sell-side
brokerage
reports
9
........................................................................Management
conference
call
analysis
9
...............................................................................Additional
company
information
12
..........................................................................Credit
analysis
and
coverage
ratios
15
.................................................................................................Shareholder
ownership
15
............................................................Analysis
of
Form
DEF14A
and
competitors
16
...............................................................................................................Devil’s
Advocate
19
3. Executive Summary
J2
Global
Communica/ons
(NASDAQ:JCOM)
founded
in
1995
is
a
provider
of
cloud-‐
based,
business-‐cri/cal
communica/ons
and
storage
messaging
services.
Core
services
include
leading
brands
in
six
business
sectors:
eFax®
(online
fax),eVoice
(virtual
voice),
FuseMail(hosted
email),
Campaigner
(email
marke/ng),
KeepItSafe
(online
backup),
and
OneBox
(unified
communica/ons).
The
company
provides
its
cloud-‐based
services
through
a
global
communica/ons
network
that
spans
more
than
4,300
ci/es
in
49
countries
on
six
con/nents
serving
more
than
11
million
subscribers
worldwide.
In
this
paper,
we
discuss
about
the
company
performance
over
the
last
10
years
and
do
an
evalua/on
of
company
stock.
Based
on
the
ROI’
and
EV/IC
performance
of
the
stock,
we
determine
that
the
stock
is
undervalued.
The
reasons
for
undervalua/on
is
analyzed
and
the
proper
recommenda/on
is
given
based
on
our
analysis.
4. 2
Investment Thesis (EEA, Mispricing, catalyst)
• Key
reasons
for
the
markets
evalua3on
of
J2
global
communica3ons
-‐
Embedded
expecta3ons.
Even
though
the
ROI’
levels
of
the
company
has
been
consistently
growing
for
the
past
10
years,
the
valua/on
of
the
company
is
not
reflec/ng
the
growth.
This
could
be
the
result
of
following
•
The
market
believes
that
the
eFax
business
which
generates
around
70%
of
revenue
for
the
company
is
dying
and
this
component
is
taken
in
to
considera/on
while
evalua/ng
the
company.
• Market
doesn’t
believe
in
the
ability
of
management
and
there
are
some
deals
which
are
quite
suspicious
that
are
made
by
the
company.
•
During
the
last
three
years
the
company
had
accumulated
so
much
of
cash
and
the
market
doesn’t
value
high
the
management
use
of
cash
in
their
valua/on
-‐ In
2008,
the
company
ini/ated
a
huge
share
buy
back
program
which
will
go
on
for
the
next
five
years.
The
excess
cash
was
used
in
this
process.
The
market
believe
this
strategy
as
a
way
to
get
the
excess
cash
out
of
the
balance
sheet
rather
than
a
strategic
investment.
-‐ In
2009,
the
company
invested
a
huge
amount
of
excess
cash
in
improving
their
opera/ng
performance
and
acquiring
new
companies.
The
market
doesn’t
see
this
as
a
strategic
fit
and
doesn’t
increase
the
valua/on
-‐ In
2010,
the
company
made
huge
investments
in
acquiring
two
companies
in
europe
which
will
make
the
exis/ng
products
beder.
• The
price
is
mis
priced
due
to
following
reasons
The
company
is
providing
cloud
based
communica/on
services
and
the
overall
demand
for
cloud
based
compu/ng
is
dras/cally
increasing
since
it
saves
a
lot
of
cost
for
the
clients
The
net
income,
return
on
investment
and
invested
capital
growth
beat
the
analyst
es/mates
for
the
last
three
quarters
in
2011.
The
stock
price
performance
shoots
up
from
$21
to
$27
and
stays
at
$27
for
almost
half
year.
The
market
believes
that
the
stock
is
cheap
at
$27.
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
5. 3
The
cancella/on
rate
of
customers
has
been
decreased
by
2.6%
from
3.7%
in
Q1
2011.
They
also
increased
their
market
presence
in
4500
ci/es
in
Europe.
We
believe
the
following
catalysts
will
drive
the
stock
price
of
JCOM
-‐ The
JCOM
ROI’
performance
over
the
last
one
year
has
exceeded
the
market
expecta/ons
and
will
con/nue
to
increase
which
will
bust
the
market
predic/on
that
eFax
business
will
go
out
of
the
market.
-‐
The
recent
acquisi/ons
made
by
the
company
fit
very
well
with
in
the
core
strategy
of
the
company
and
adds
more
value
to
their
exis/ng
product
line.
-‐ Most
importantly,
the
market
will
understand
that
the
majority
business
crea/ng
product
eFax
will
not
go
out
of
market
and
con/nue
to
exist
in
new
markets
where
it
is
s/ll
considered
a
innova/ve
product.
-‐ It
ll
also
become
a
sweet
target
for
poten/al
take
overs
and
might
increase
the
valua/on
of
the
company.
-‐ The
investment
capital
growth
in
last
year
is
13%
and
with
the
recent
acquisi/ons
it
wll
con/nue
to
increase.
All
these
reasons
makes
us
believe
that
the
market
undervalued
the
company
and
it
is
a
certain
BUY
op/on.
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
6. 4
EV/IC
sca*ers
graph
analysis
Forward
ROI’
Macro
and
Thema9c
Drivers
J2
Global
Communica/ons
operates
in
the
Internet
Soiware
and
Services
sub-‐
industry.
Nevertheless,
its
main
focus
is
on
“cloud-‐based,
value-‐added
communica/on,
messaging
and
data
backup
services
to
businesses
of
all
sizes,
from
individuals
to
enterprises
(…)
under
the
brand
names
eFax,
eVoice,
Electric
Mail,
Campaigner,
KeepItSafe
and
Onebox”.
Although
it
has
taken
a
while
for
this
sector
of
the
market
to
heat
up,
communica/ons-‐as-‐a-‐service
(CaaS)
is
genera/ng
serious
aden/on.
Currently,
it
is
a
small
market,
with
few
vendors
offering
complete
product
offerings
in
the
area
of
unified
communica/ons
(UC)
and
contact
centers
but
this
will
most
likely
change.
We
believe
that
current
budget
restraints,
limited
IT
exper/se
and
unwillingness
to
undertake
large
capital
expenditures
is
a
driving
force
for
this
shii
in
buying
behaviors.
The
uptake
in
interest
to
use
cloud
services
for
communica/ons
(according
to
Forrester
Research,
23%
of
decision
makers
stated
they
would
consider
both
UC
and
contact
centers
as
a
cloud
based
service
in
2011)
may
be
a
response
to
the
general
market
acceptance
of
cloud
services
for
other
cloud
services
such
as
soiware-‐as-‐a-‐service
(SaaS)
and
infrastructure-‐as-‐a
service
(IaaS)
solu/ons
that
help
companies
beder
manage
their
IT
expenses.
Today,
most
UC
solu/ons
available
as
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
7. 5
CaaS
are
single
applica/ons
and
are
not
comprehensive
product
suites:
therefore,
we
believe
JCOM’s
cross-‐selling
strategy
of
offering
a
complete
suite
of
cloud-‐based
services
will
be
winning.
We
think
buying
paderns
for
both
UC
and
contact
center
solu/ons
will
shii
during
the
next
few
years
from
premise
to
cloud
services,
as
more
service
providers
recognize
the
full
poten/al
of
the
CaaS
opportunity
and
develop
robust
product
solu/ons.
This
will
allow
customers
to
pay
per-‐user
per-‐month
or
per-‐transac/on
for
full
lifecycle
support
and
enable
them
to
gain
advanced
UC
and
contact
center
solu/ons
quickly
and
affordably.
In
order
for
JCOM
to
grow
its
market
share
in
the
sector
(against
big
compe/tors
such
as
Microsoi,
IBM,
and
Cisco,
and
smaller
ones
such
as
Level
3
Communica/ons),
we
believe
it
will
have
to
focus
its
aden/on
on:
· increasing
brand
awareness
and
recogni/on;
· innova/on
through
R&D
and
patents
licensing;
· improving
customer
service,
which
in
turns
drives
up
reten/on
(cancel
rate
down
to
2.6%
in
Q1
2011);
· implemen/ng
reliable
privacy
and
security
systems
in
order
to
avoid
fraudulent
ac/vity,
system
failure
or
a
security
breach.
Addi/onal
risk
factors
are
the
inability
to
successfully
integrate
and
realize
an/cipated
synergies
from
newly
acquired
businesses
(as
the
company
relies
mainly
on
acquisi/ons
rather
than
organic
growth),
and
the
inability
to
con/nue
to
expand
the
business
and
opera/ons
interna/onally.
To
be
men/oned
that
the
services
are
currently
considered
by
the
management
as
“informa/on
services”
under
the
Telecommunica/ons
Act
of
1996
and
related
precedent
and
therefore
not
currently
subject
to
U.S.
telecommunica/ons
services
regula/on
at
both
the
federal
and
state
levels.
However,
the
services
u/lize
data
transmissions
over
public
telephone
lines
and
other
facili/es
provided
by
carriers
which
are
subject
to
foreign
and
domes/c
laws
and
regula/on
by
the
Federal
Communica/ons
Commission
(the
“FCC”),
state
public
u/lity
commissions
and
foreign
governmental
authori/es.
These
regula/ons
affect
the
availability
of
DIDs,
the
prices
paid
for
transmission
services,
the
administra/ve
costs
associated
with
providing
our
services,
the
compe//on
from
telecommunica/ons
service
providers.
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
8. 6
As
messaging
and
communica/ons
services
converge
and
as
the
services
expand,
JCOM
may
become
subject
to
FCC
or
other
regulatory
agency
regula/on,
or
subject
to
fines,
penal/es
or
enforcement
ac/ons
as
well
as
liabili/es
for
past
regulatory
fees
and
charges,
retroac/ve
contribu/ons
to
various
telecommunica/ons-‐related
funds,
telecommunica/ons-‐related
taxes,
penal/es
and
interest.
Changes
in
the
regulatory
environment
could
decrease
revenues,
increase
costs
and
restrict
the
service
offerings.
In
many
interna/onal
loca/ons,
JCOM
is
subject
to
regula/on
by
the
governmental
authority.
Summary
Analysis
of
Cash
Flow
Prime™
Valua9on
J2
Global
Communications
5
year
forecast
of
ROI’
and
IC’
The
ROI
performance
over
the
past
10
years
is
good
for
JCOM
as
it
has
been
consistently
increasing
rela/vely
to
IC
growth.
In
the
year
2004,
the
ROI
prime
-‐0.3750
0
0.3750
0.7500
1.1250
1.5000
-‐2%-‐0%
0%1%
9%
-‐4%-‐4%
6%
27%
-‐12%
23%
37%
101%
39%
0%
IC'
Growth
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
9. 7
performance
went
down.
It
may
be
due
to
the
heavy
investment
in
2003.The
company
has
dras/cally
reduced
inves/ng
in
capital
from
2006.
Even
though
the
ROI
prime
maintained
consistency
over
the
period
of
2006
to
2009,
the
evalua/on
of
the
company
started
going
down.
Possible
Reason:
The
analysts
might
have
perceived
that
the
company
growth
is
minimal
and
reduced
the
evalua/on.
From
2009
to
2010,
even
though
the
growth
is
minimal,
the
ROI
prime
performance
increased.
This
has
been
the
best
ROI
prime
performance
for
the
company
so
far,Even
though
the
company
reduced
the
growth
by
4
%.
Hence
the
ideal
scenario
-‐
Low
growth,
High
ROI
prime.
The
future
projected
ROI’s
for
the
year
2011
is
also
increasing.
It
could
be
the
fact
that
the
growth
and
ROI
prime
performance
are
not
included
in
the
evalua/on.
Even
if
you
compare
with
other
companies
in
the
same
industry,
the
ROI
performance
of
JCOM
is
way
ahead
for
the
valua/on.
From
this
ROI
and
EV/IC
analysis,
we
can
infer
that
the
company
JCOM
is
highly
undervalued
and
its
necessarily
a
BUY
op/on.
If
you
observe
the
below
graph
which
displays
the
ROI
performance
rela/ve
to
EV/IC
levels.
Even
though
the
company
has
increasing
ROI
levels
aier
2007,
the
company
valua/on
went
down.
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
10. 8
Similarly
if
you
observe
the
ROI
vs
IC
growth
chart,
it
reflects
the
same
informa/on.
The
growth
in
Invested
capital
is
decreasing
but
the
ROI
is
increasing.
This
is
an
ideal
situa/on
and
we
as
a
team
believe
that
this
valua/on
is
not
part
of
the
current
stock
price.
There
fore
we
believe
that
the
stock
price
will
go
up
and
we
should
BUY
the
stock
now.
ROI
growth
VS
EV/IC
0
5.0
10.0
15.0
20.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 LFY+1
10.5
12.3
6.77.3
8.6
15.4
10.310.19.1
7.4
2.5
EV/IC'
0
5
10
15
20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 LFY+1
9.810.5
8.1
10.011.7
17.017.917.618.0
7.0
4.1
Fwd
P/E'
0
5
10
15
20
0 28 55 83 110
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
11. 9
ROI vs IC Growth
Review
of
sell-‐side
brokerage
reports
With
the
premise
that
the
company
receive
marginal
aden/on
by
sell-‐side
analysts
(which
might
be
an
addi/onal
reason
for
the
stock
to
be
underpriced),
analysts
rated
JCOM
with
six
“buy”
or
“strong
buy”
and
four
“hold”
out
of
the
total
coverage
(source:
Yahoo!
Finance).
The
mean
target
price
is
$34.00
(high
target
price
is
$41.00).
Consensus
target
price
is
$33.88
(source:
Bloomberg).
Management
conference
call
analysis
Risk
Factors
•
Inability
to
sustain
growth
or
profitability,
par/cularly
in
light
of
an
uncertain
U.S.
or
worldwide
economy
and
the
related
impact
on
customer
acquisi/on
and
reten/on
rates,
customer
usage
levels
and
credit
and
debit
card
payment
declines
•
Inability
to
maintain
and
expand
our
customer
base
and
maintain
or
increase
the
average
revenue
per
subscriber
•
Inability
to
successfully
integrate
and
realize
an/cipated
synergies
from
newly
acquired
businesses
-38
0
38
75
113
150
13 41 46 37 47 70 68 69 71 89 102
IC Growth ROI
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
12. 10
•
Inability
to
con/nue
to
expand
our
business
and
opera/ons
interna/onally
•
New
or
unan/cipated
costs
or
income,
sales
or
other
tax
liabili/es
or
inability
to
accurately
es/mate
our
effec/ve
tax
rate
•
Inability
to
maintain
exis/ng
or
enter
into
new
rela/onships
on
acceptable
terms
with
cri/cal
telecom
and
other
vendors
whose
financial
condi/on
will
not
nega/vely
impact
the
services
they
provide
•
Inability
to
manage
certain
risks
inherent
to
our
business,
such
as
fraudulent
ac/vity,
system
failure
or
a
security
breach
•
Compe//on
from
other
similar
providers
with
regard
to
price,
service
and
func/onality
•
Inability
to
obtain
telephone
numbers
in
sufficient
quan//es
on
acceptable
terms
and
in
desired
loca/ons
•
Enactment
of
burdensome
telecommunica/ons,
Internet,
or
other
regula/ons
•
Reduced
use
of
fax
services
due
to
increased
use
of
email,
scanning
or
widespread
adop/on
of
digital
signatures
•
Inability
to
adapt
to
technological
change
and
diversify
our
service
offerings
and
related
revenues
at
acceptable
levels
of
return-‐on-‐investment
•
Inadequate
intellectual
property
protec/on
or
viola/ons
of
third
party
intellectual
property
rights
•
Loss
of
services
of
execu/ve
officers
and
other
key
employees
•
Other
factors
set
forth
in
our
Annual
Report
on
Form
10-‐K
filed
by
us
on
February
28,
2011
with
the
Securi/es
and
Exchange
Commission
(“SEC”)
and
the
other
reports
we
file
from
/me-‐to-‐/me
with
the
SEC
Q1
2011
Updates
Organic
Net
Adds
of
nearly
25K;
a
Strong
Quarter
Improved
Reten/on;
Cancel
Rate
Down
to
2.6%
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
13. 11
Q1
Non-‐GAAP
Revenue
is
$83.7M;
39%
Y/Y
and
18%
Q/Q
growth
Record
FCF
of
$38.2M,
Despite
$1.9M
of
Transi/on
Exit
Costs,
Net
of
Tax
Corporate
Con/nues
to
Grow
at
a
Healthy
Pace
•
Net
adds
of
>10,000
DIDs
in
quarter;
added
8
new
large
contracts
in
Q1
•
Y/Y
revenue
growth
of
~30%;
DID
growth
of
>25%
Interna/onal
Expansion
Across
Mul/ple
Services
•
Added
Onebox®
Numbers
in
15
Major
Canadian
Ci/es
•
Increased
presence
in
Germany;
115
more
ci/es
for
a
total
of
303
ci/es
•
Strong
growth
con/nues
in
Japan:
Q/Q
revenue
up
>
45%,
DIDs
up
>68%
• Several
poten/al
acquisi/ons
Progress
of
Acquisi/ons
Transi/on
of
Our
Recent
Acquisi/ons
on
Target:
•
Venali®
-‐
finish
integra/on
in
Q2
•
MyFax®
-‐
sales
team
already
combined
with
eFax®
under
single
management
•
Con/nue
to
support
MyFax®
brand;
achieved
double
digit
growth
rate
•
MyFax®/My1voice™
-‐
expect
last
stage
to
be
completed
during
Q4
Expand
Geographical
Reach
for
KeepItSafe™
•
Leading
back-‐up
provider
in
Ireland;
fully
integrated
into
our
Dublin
office
•
Started
expansion
into
UK,
targe/ng
SMB
and
Enterprise
customers
•
Investment
to
increase
data
storage
capacity
•
Y/Y
revenue
growth
is
>35%
Campaigner:
Acquired
December
2010
•
Development,
Marke/ng,
Sales,
Customer
Support
kept
in
Odawa
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
14. 12
· Simple
and
Easy
to
Use;
Quick
Set
Up
to
Start
Email
Marke/ng
· Posi/oned
as
Best
In
Class
•
Free
24/7
customer
support
•
Free
on-‐boarding
•
Compe//ve
pricing
•
Ideal
value
proposi/on
for
SMB/SOHO
customers
· Proven
Reliability
to
Ensure
Emails
are
Delivered
on
Time
· Technology
is
Scalable
to
Support
Growing
Client
Base
· Annual
Seat
Growth
is
>74%
· Greater
than
10,000
Paying
Customers
Cross
Sell
Ini/a/ves
Focus
on
j2
Premium
Services:
eFax®,
eVoice®,
Campaigner®,
FuseMail®,
KeepItSafe®
and
Onebox®
•
Ini/al
focus
on
increasing
awareness
both
internally
and
externally
•
Ac/vely
pursuing
cross
sells
with
every
direct
sale/increase
awareness
•
Launched
new
j2.com
“one-‐stop-‐shopping”
website
in
March
• X-‐Sell
promo/ons
on
web
pages
for
all
brands
and
all
communica/ons
Generated
New
Sign
Ups
from
Cross
Selling
Efforts
Addi9onal
company
informa9on
J2
Global
Communica/ons’
strategy
J2
Global
Communica/on
adopts
a
strategy
named
“CORE”
which
stands
for
Cloud
Service
for
Business;
Our
Own
Brands;
Recurring
Revenue;
Efficient
Opera/ons.
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
15. 13
Cloud
Services
for
Business
J2
Global
Communica/ons
believes
that
businesses
of
all
sizes
are
increasingly
outsourcing
their
communica/on,
messaging
and
data
backup
needs.
Their
goal
is
to
reduce
or
eliminate
costs
while
also
enhancing
produc/vity,
mobility,
business
con/nuity
and
security.
Under
this
circumstance,
Cloud
services
will
definitely
be
a
perfect
fit
to
cater
these
growing
unmet
needs.
More
specifically,
these
services
represent
more
efficient
and
less
expensive
solu/ons
than
many
exis/ng
alterna/ves,
and
provide
for
increased
security,
privacy
and
message
handling
flexibility.
Our
Own
Brands
J2
Global
Communica/ons
owns
and
uses
a
number
of
trademarks
in
connec/on
with
its
products
and
services,
including
eFax
and
the
eFax
logo,
MyFax
and
the
MyFax
logo,
eFax
Corporate
and
the
eFax
Corporate
logo,
eVoice
and
the
eVoice
logo,
Electric
Mail
and
the
Electric
Mail
logo,
KeepItSafe™
and
the
KeepItSafe™
logo
and
Onebox
and
the
Onebox
logo,
among
others.
Many
of
these
trademarks
are
registered
in
the
U.S.
and
other
countries,
and
numerous
trademark
applica/ons
are
pending
in
the
U.S.
and
several
non-‐U.S.
jurisdic/ons.
J2
holds
numerous
Internet
domain
names,
including
“efax.com”,
“efaxcorporate.com”,
“myfax.com”,
“fax.com”,
“evoice.com”,
“electricmail.com”,
“campaigner.com”,“fusemail.com”,
“keepitsafe.com”
and
“onebox.com”,
among
others.
J2
also
has
in
place
an
ac/ve
program
to
con/nue
securing
“eFax”
and
other
domain
names
in
non-‐U.S.
jurisdic/ons.
Besides,
J2
has
filed
to
protect
our
rights
to
the
“eFax”
and
other
names
in
certain
alterna/ve
top-‐level
domains
such
as
“.org”,
“.net“,
“.biz”,
“.info”
and
“.us”,
among
others.
The
above
patents
definitely
are
J2’s
compe//ve
advantages
comparing
to
its
major
compe/tors.
Recurring
Revenue
J2’s
most
revenue
are
recurring
revenue
which
means
once
a
customer
starts
to
using
J2’s
service,
it
will
generate
revenue
con/nuously.
To
certain
extent,
this
business
model
can
easily
incur
reliable
revenue
in
the
following
years
which
is
rela/vely
predictable
and
stable.
More
importantly,
this
kind
of
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
16. 14
revenue
source
needs
less
expenditure
to
maintain
rela/onship
with
exis/ng
clients.
Increasing
number
of
new
clients
and
general
expansion
of
exis/ng
clients
will
yield
more
business
opportuni/es
to
J2
which
will
turn
into
company’s
revenue
at
the
end.
Efficient
Opera/ons
J2
is
aiming
to
help
both
individual
and
companies
to
improve
their
opera/on
efficiency.
By
using
advanced
servers
and
professional
technique
supports,
J2
can
bring
its
clients
fast
processing,
convenient
accessing,
more
func/ons
and
safety
at
low
cost.
Save
clients
money
and
/me
as
well
as
improving
their
accuracy
at
a
reasonable
is
the
key
to
J2’s
business.
J2
Global
Communica/ons’
Plan
in
2011
1. Con/nue
to
conduct
acquisi/on
and
integra/on.
• Finish
integra/on
of
Venali®
before
Q2
• Combine
sales
team
of
MyFax®
and
eFax®
under
single
management
by
the
end
of
2011
• Con/nue
to
support
MyFax®
brand
to
achieve
double
digit
growth
rate.
• Finish
integra/on
of
MyFax®/My1voice™
-‐
by
the
end
of
Q4,
2011.
2. Expanding
Geographical
Reach
for
KeepItSafe™.
• KeepItSafe™
will
be
fully
integrated
into
our
Dublin
office,
aiming
to
lead
back-‐
up
provider
in
Ireland.
• Start
expansion
into
UK,
targe/ng
SMB
and
Enterprise
customers
• Investment
to
increase
data
storage
capacity
• Y/Y
revenue
growth
is
>35%
3. Enhancing
Cross
sell,
especially
focusing
on
premium
services
(eg.
eFax®,
eVoice®,
Campaigner®,
FuseMail®,
KeepItSafe®
and
Onebox®)
within
the
group.
• Ini/a/ng
focus
on
increasing
awareness
both
internally
and
externally
• Ac/vely
pursuing
cross
sells
with
every
direct
sale/increase
awareness
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
17. 15
• Launching
new
j2.com
“one-‐stop-‐shopping”
website
• X-‐Sell
promo/ons
on
web
pages
for
all
brands
and
all
communica/ons
Credit
analysis
and
coverage
ra9os
Assets
are
completely
financed
by
equity
(no
debt)
and
WACC
(in
this
case
cost
of
equity)
is
10.42%.
No
preferred
equity.
1-‐Yr
Default
Likelihood:
0.001%,
Credit
ra/ng:
AAA,
5-‐Yr
CDS
Spread:
33bp
(source:
Bloomberg).
Management
is
composed
of
4
execu/ves
($0.62MM
average
reported
compensa/on,
9.2
years
average
tenure),
whereas
5
is
the
average
for
peer
companies
($1.42MM
average
reported
compensa/on,
7.6
years
average
tenure).
Board
of
directors
is
composed
of
6
members;
all
of
them
are
independent
and
own
shares,
whereas
83.3%
of
peer
companies’
board
members
own
shares.
The
average
tenure
is
8.6
years,
whereas
is
6.6
years
for
peer
companies.
The
ten
major
shareholders
are:
Fidelity
Management
&
Research
(12.75%),
Macquarie
Group
Ltd
(8.26%),
Delaware
Management
Company
(7.75%),
Vanguard
(5.13%),
William
Blair
&
C.
(5.00%),
Blackrock
Fund
Advisors
(4.55%),
Perkins
Investment
Mgmt
Llc
(4.31%),
Century
Capital
Management
Llc
(3.81%),
Reinassance
Technologies
Corp
(3.45%),
TimesSquare
Capital
Management
(2.94%).
Shareholder
ownership
Major
Direct
Holders:
Holder
Shares Reported
RESSLER
RICHARD
S 1,024,703 May
12,
2011
TURICCHI
R
SCOTT 348,564 Jun
7,
2011
BECH
DOUGLAS
Y 175,021 May
12,
2011
ZUCKER
NEHEMIA 141,375 May
10,
2011
CRESCI
ROBERT
J 52,553 Jul
6,
2011
Top
Institute
Holders:
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
18. 16
Top Mutual Fund Holders:
Analysis
of
Form
DEF14A
and
compe9tors
The
members
of
the
Compensa/on
Commidee
are
Messrs.
Bech,
Cresci
and
Schulhof,
who
is
the
Chairman
of
the
Commidee.
The
Compensa/on
Commidee
is
responsible
for,
among
other
things,
administering
the
Company’s
compensa/on
programs,
including
its
stock
and
benefit
plans,
for
making
recommenda/ons
to
the
Board,
for
approval
by
a
majority
of
independent
directors,
with
respect
to
compensa/on
of
the
Company’s
execu/ves
and
for
recommending
to
the
Board
changes
in
the
policies
that
govern
the
Company’s
compensa/on
programs.
Here
are
the
basic
components
of
the
company
compensation
program
:
• Compensa/on
for
j2
Global’s
execu/ves
generally
consists
of
salary,
par/cipa/on
in
an
execu/ve
bonus
program
and
stock
op/on
grants
and
restricted
stock
awards.
• The
Commidee
helps
the
Board
of
Directors
assess
past
performance
and
an/cipated
future
contribu/on
of
each
execu/ve
officer
in
recommending
to
the
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
19. 17
Board
of
Directors,
for
approval
by
a
majority
of
independent
directors,
the
total
amount
and
mix
of
each
element
of
compensa/on.
Base
salaries
are
evaluated
annually
for
all
execu/ve
officers.
In
determining
appropriate
salary
levels
for
such
officers
to
recommend
to
the
Board
of
Directors
for
its
approval,
the
Compensa/on
Commidee
considers,
among
other
factors,
the
officer’s
scope
of
responsibility,
prior
experience
and
past
performance
and
data
on
prevailing
compensa/on
levels
in
relevant
markets
for
execu/ve
talent.
j2
Global
has
established
an
execu/ve
bonus
program
for
awarding
bonuses
to
execu/ves
and
eligible
managers
and
an
employee
bonus
program
for
all
other
employees.
As
part
of
the
execu/ve
bonus
program,
the
bonus
guidelines
established
each
year
for
j2
Global’s
execu/ves
and
eligible
managers
are
designed
to
encourage
and
reward
senior
management
for
(a)
adaining
Company-‐wide
financial
goals,
(b)
improving
the
financial
and
opera/onal
health
of
j2
Global,
and
(c)
mee/ng
or
exceeding
individually
defined
goals
and
objec/ves
for
each
execu/ve
and
eligible
manager.
j2
Global’s
Compensa/on
Commidee
establishes
these
guidelines
subject
to
final
approval
by
a
majority
of
independent
directors.
The
guidelines
are
non-‐
binding
and
do
not
create
any
contract
right
between
the
Company
and
its
employees.
Power
Sleuthing
J2
Global
Communications
continues
to
grow
its
most
powerful
eFax
brand
with
creative
content
and
designs.
Furthermore,
secondary
digital
faxing
brands,
including
Fax.com,
Rapid
FAX,
and
Send2Fax
also
registered
growth
at
a
higher
rate
than
eFax,
its
signature
offering.
With
the
acquisition
of
Phone
People
Holding
Corporation
in
the
U.S.
and
Media
burst
Limited
in
Europe,
j2
Global
Communications
has
become
a
worldwide
leader
in
the
virtual
PBX
market.
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
20. 18
The
below
charts
will
illustrate
tools
that
analysts
may
use
in
order
to
gain
valuable
information
that
may
affect
the
companies
stock
performance.
JCOM
Research
and
visit
other
efax
and
messaging
service
providers
and
compare
the
price
with
JCOM
to
get
an
idea
of
customer
willingness
Ques/on
other
service
providers
and
to
determine
what
is
most
important
differen/ator
a
customer
look
for
in
eFax
and
messaging
Survey
the
target
market
customer
to
find
out
whether
they
use
JCOM
products
and
what
are
other
brands
in
the
marjet
they
Use
the
survey
results
of
targeted
market
customers
to
gauge
which
brand
is
most
used
and
favoured
by
market
JCOM
Make
monthly
call
to
JCOM
customers
to
determine
what
service
they
prefer
to
upgrade
and
which
service
they
like
most
Survey
customers
on
the
course
to
determine
which
service
they
use
most
and
what
changes
they
want
to
see
in
those
services
Conduct
survey
and
employe
agents
to
determine
which
service
is
most
reliable
and
which
service
has
seen
the
highest
growth
Monitor
similar
kind
of
services
exists
in
the
market
and
determine
which
service
is
most
offered
and
disliked
by
the
customers
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.
21. 19
Devil’s
Advocate
Though
we
maintain
the
view
of
‘buy’
on
J2COM
stock,
we
need
to
re-‐consider
our
assumptions
and
double
check
whether
our
analysis
observes
all
the
risks
present
in
the
investment.
In
our
research,
we
have
taken
a
holistic
view
of
risks
present
in
this
investment
and
have
complied
a
‘what
if’
list
to
determine
the
risky
scenarios
our
investment
can
face.
What
if:
1. Company
face
legal
issues
regarding
patenting
a. On
March
2011,
j2
Global
Communications
received
a
legal
notice
for
infringement
of
patent
from
EasyLink
Services
International
Corp.(NASDAQ:ESIC),
which
complained
that
j2
Global
infringes
two
of
its
patent
related
to
Facsimile
Form
Generation
System
and
Autonomous
Multi-‐Function
Peripheral
Device-‐based
document
communications
systems
and
methods.
j2
Global
Communications
has
long-‐standing
legal
battles
with
EasyLink
and
Captaris
Inc.,
a
subsidiary
of
Open
Text
Corp.
(NASDAQ:OTEX).
These
were
related
to
reliable
transmission
of
facsimile
and
voice
messages
in
email
form
over
the
Internet
2. Competition
intensi^ies
a. J2COM
has
to
go
head-‐on
against
giants
in
cloud
such
as
Microsoft,
IBM,
Cisco
etc
b. J2COM
also
competes
with
EasyLink
Services
International
Corp.,
Open
Text
Corp.
that
offers
similar
services
3. Legal
risk
a. Company’s
services
to
be
subject
to
U.S.
telecommunications
services
regulation
at
both
the
federal
and
state
levels
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc
22. 20
4. Insider
trading
can
lead
to
decline
in
stock
price
a. CEO
of
j2
Global
Communications
Inc.
Nehemia
Zucker
sells
20,056
shares
of
JCOM
on
05/09/2011
at
an
average
price
of
$29.79
a
share.
5. Changes
in
industry
a. Short
sellers
are
betting
heavily
against
electronic
fax
goliath
j2
Global,
assuming
j2
will
be
unable
to
offset
the
seemingly
inevitable
decline
of
fax
use
globally.
6. Company
fails
to
deliver
the
customer
service
essential
in
this
industry
a. There
have
been
cases
of
unprofessional
customer
services
and
b. Not
delivering
the
services
promised
at
the
promised
price
7. Heavy
reliance
on
the
eFax
business
which
is
however
mitigated
by
the
international
expansion,
and
most
importantly
through
the
diversi^ication
of
product
portfolio,
acquisitions,
R&D,
Patent
licensing.
Global
Strategic
Valuation
NASDAQ:JCOM
J2 Global Communications Inc.