DJ DJCO Daily Journal Corporation Loading... : Investor Sentiment and Bull/Bear Views

Daily Journal is an attractive sum-of-the-parts setup: the equity portfolio is roughly $500M pre-tax, less margin and taxes worth about $330/share, while Journal Technologies, the court-case management software business, may be worth about $250/share and looks undervalued versus peers. JTI has regulatory/compliance moats, proprietary transaction data and API access, high switching costs, local-government procurement inertia, roughly 20% growth, and is shifting from service- to product-oriented under a new CEO with visible RFP/milestone and margin/FCF improvement. The post-Munger equity portfolio and weak insider ownership are real risks, but Roy views the cash/equities as a war chest for M&A or buybacks and downside support for the JTI thesis.

At current prices, DJCO's sum-of-the-parts does not look like clear alpha: the equity portfolio is a large beta/drag inside a corporate wrapper, Charlie Munger is no longer running it, the CEO and board own little stock, and the equity sleeve dominates the market cap, so even strong JTI growth may not translate into strong shareholder returns. Andrew frames it as a stock portfolio with a business attached rather than a clean core-business opportunity.