Daily Journal Corporation: Discount In Line With Holding Company Norms

Daily Journal Corporation (DJCO) had a good performance in terms of revenue growth over expenses, which had non-recurring growth components. There has been some appreciation in the marketable holdings since the end of June. The issue is that the 33% upside implies around a 20% discount to what we think is a fair value. That lines up with typical discounts we see with HoldCos. This is at least a conservative case. When taking into account possibly non-recurring costs, the discount becomes more appealing at around 33%.

Daily Journal Corporation ( DJCO ) saw pretty solid performance with operating leverage on higher sales to government agencies of its journal technologies. Moreover, some of the expenses that were up the most appear to be more non-recurring.