Daily Journal's 15min chart triggers MACD Death Cross, KDJ Death Cross, Bearish Marubozu.
ByAinvest
Thursday, Sep 25, 2025 12:02 pm ET1min read
DJCO--
The company, which has evolved from a legal publisher to a GovTech business, has seen significant changes in its revenue streams. As of the nine months ended in fiscal 2025, nearly 77% of its revenues come from the judicial software vertical, known as Journal Technologies [1]. This shift has made it challenging for investors to value the company, as more than 80% of its total assets are tied to a securities portfolio [1].
Despite the challenges, the GovTech industry shows strong growth prospects. The global GovTech market was valued at $606B in 2024 and is projected to exceed $1.4T by 2034, with a CAGR of around 9% [1]. The U.S. federal IT budget for 2025 amounts to $75B, with allocations for cloud, cybersecurity, and artificial intelligence, aligning with Journal Technologies' offerings [1].
Valuation of Daily Journal Corp. is complex due to the significant securities portfolio. The company's enterprise value stands at about $625M, but this figure does not fully capture the value of the securities portfolio, which is worth $443M [1]. Using an SOTP (Sum-of-the-Parts) approach, the adjusted enterprise value for operations is about $182M, resulting in an EV/EBITDA multiple of 18.2x, which is more reasonable than the initial 62x figure [1].
The main risk for Daily Journal Corp. is the performance of its securities portfolio. A 15% drop in the portfolio's value could lead to a loss of about $65M, or roughly $47 per share [1]. Additionally, potential budget cuts in several U.S. states could slow the adoption of new contracts or the expansion of Journal Technologies' services [1].
Given these factors, the current rating for Daily Journal Corp. is Hold, with a 12-month price target in the range of $440 to $450 per share [1]. However, this target could be invalidated quickly depending on the performance of the securities portfolio.
The 15-minute chart for Daily Journal has recently triggered three bearish indicators: a MACD Death Cross, a KDJ Death Cross, and a Bearish Marubozu. This suggests that the stock price has the potential to continue declining, as momentum is shifting towards the downside and sellers are gaining control of the market. It is likely that this bearish momentum will persist, with the stock price potentially continuing to decrease in value.
Daily Journal Corp. (NASDAQ: DJCO) has recently experienced a series of bearish indicators on its 15-minute chart, suggesting potential further decline in its stock price. The indicators include a MACD Death Cross, a KDJ Death Cross, and a Bearish Marubozu, signaling a shift in momentum towards the downside and an increase in selling pressure [1].The company, which has evolved from a legal publisher to a GovTech business, has seen significant changes in its revenue streams. As of the nine months ended in fiscal 2025, nearly 77% of its revenues come from the judicial software vertical, known as Journal Technologies [1]. This shift has made it challenging for investors to value the company, as more than 80% of its total assets are tied to a securities portfolio [1].
Despite the challenges, the GovTech industry shows strong growth prospects. The global GovTech market was valued at $606B in 2024 and is projected to exceed $1.4T by 2034, with a CAGR of around 9% [1]. The U.S. federal IT budget for 2025 amounts to $75B, with allocations for cloud, cybersecurity, and artificial intelligence, aligning with Journal Technologies' offerings [1].
Valuation of Daily Journal Corp. is complex due to the significant securities portfolio. The company's enterprise value stands at about $625M, but this figure does not fully capture the value of the securities portfolio, which is worth $443M [1]. Using an SOTP (Sum-of-the-Parts) approach, the adjusted enterprise value for operations is about $182M, resulting in an EV/EBITDA multiple of 18.2x, which is more reasonable than the initial 62x figure [1].
The main risk for Daily Journal Corp. is the performance of its securities portfolio. A 15% drop in the portfolio's value could lead to a loss of about $65M, or roughly $47 per share [1]. Additionally, potential budget cuts in several U.S. states could slow the adoption of new contracts or the expansion of Journal Technologies' services [1].
Given these factors, the current rating for Daily Journal Corp. is Hold, with a 12-month price target in the range of $440 to $450 per share [1]. However, this target could be invalidated quickly depending on the performance of the securities portfolio.
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