J2 Global Communications

The Company

J2 Global Communications, Inc., provides outsourced, value-add messasing and communications services to individuals and businessesa round the world. J2 Global's network spans more than 200 cities in 28 countries on five continents. It offers faxing and voicemail solution, docuemnt management solutions, Web-initied conference calling and unified-messaging and communications services

Outlook

Earning expected to grow 25% year over year in 2006 and 2007 continuing the constant earnings trend. Recently received delisting notice because of failure to file 10K because auditors investigating the financial effect of granted options. Should not have material effect. I expect stock to rebound from 24.32 once the 10k filed

Technical Outlook

Sept. 16, 2006: In a down market, the price could fall to $23. The stock should trade between $23 to $26 until SEC investigation concludes.

Notes

• Sept 28, 2006. Forbes quotes a Friedman Billing report that notes that J2 has traditionally had success implementing regular price increases every three years, and that an expected hike in early 2007 could increase revenue and earnings by 10% to 15% over this year.

The report reiterated an "outperform" rating on the stock with a $37 target, more than 34% above the current price.

"J2 is truly starting to hit its stride on the large enterprise segment," Ives wrote in a research report Thursday, noting that the company's business customers, which currently account for 5% of annual revenues, could morph into a main growth catalyst in the coming years.

Friedman Billings projects that J2 will earn 30 cents per share for the third quarter and $1.16 for the 2006 full year, up from 24 cents and 89 cents per share, respectively, in 2005.

• Sept 06, 2006: Fell a $1 becaue no announcement on SEC investigation of options.

As of Oct 1, 2006 efax rates jump from $12.95 per month to $16.95.