JCOM – Market expectations are for record-low Uniform ROA, but management is confident about growth, their various platforms, and cancellation rates

• J2 Global, Inc. (JCOM:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with a 9.8x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their growth initiatives, various products and platforms, and cancellation rates
  
  

• Specifically, management generated excitement markers when saying they are funding key growth initiatives at the company given their strong balance sheet and free cash flow, and that they have identified four longer-term themes emerging from the crisis that are important to them. In addition, they are confident their Consensus platform will be important as health care moves to the cloud, and that Sugarsync and IPVanish will be bundled together at the same price. Moreover, they are confident cancellations were higher during the Great Recession