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DJCODaily Journal Corp. (S.C.)Sell4.9·$612.62
SellModerate Confidence
Investment thesis

Daily Journal shows a breakout setup backed by strong revenue growth, but expensive valuation, a heavy leverage penalty, high short interest, and an exhausted-upside gate leave the engine unable to find a clean edge despite the technical strength.

Thesis pillars

  • Strong Growth Profile→Stable
  • Breakout Positive Momentum→Stable
  • Leverage Penalty Expensive Valuation→Stable
  • +2 more pillars — see the Why tab for full reasoning

Pillars as of Jul 5, 2026, based on the 10-K filed Dec 29, 2025

Full reasoning →

Open full analysis

Daily Journal Corp. (S.C.) (DJCO) Stock Analysis

Range Bound setup

SellGrowthShortModerate Confidence

Technology · Software - Application

Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $612.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.4); Sector modifier (Technology): -0.8.

Daily Journal Corporation operates two businesses: Journal Technologies, which sells case management software to courts and justice agencies in about 37 states and internationally, and a Traditional Business of ten California and Arizona newspapers plus public notice... Read more

$612.62+6.9% A.UpsideScore 4.9/10#109 of 116 Software - Application
QualityF-score9 / 9FCF yield0.88%
Stop $569.74Resistance target $654.64A.R:R 0.0:1

Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $612.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.4); Sector modifier (Technology): -0.8. Chart setup: RSI 41 mid-range, Bollinger mid-band. Score 4.9/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-10-29

Recent Developments — Daily Journal Corp. (S.C.)

Generated 2026-10-29T13:34:02Z.

Thesis

Rewards
No bull case signals
Risks
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.4)
Sector modifier (Technology): -0.8
Weak overall score: 4.9/10

Key Metrics

P/E (TTM)—
P/E (Fwd)—
Mkt Cap$844M
EV/EBITDA26.6
Profit Mgn-11.6%
ROE-3.3%
Rev Growth15.3%
Beta0.83
DividendNone
Rating analysts—

Quality Signals

Piotroski F9/9MoatNarrow

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Ps
4.4
Expensive valuation
Low model confidence on this dimension (40%).
GatesMomentum 4.4<4.5A.R:R UPSIDE_EXHAUSTED (upside=0.0%)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
41 · Neutral
↓ 20D MA↓ 50D MA↑ 200D MAGOLDEN CROSSSupport $563.32Resistance $668.00

Price Targets

$570
$655
A.R:R0.0:1

Position Sizing

ConvictionNone
Suggested %0%
Max %0%
RegimeRisk-Off

Risk Alerts

! momentum at 4.4 (below the engine's 4.5 threshold)

Earnings

We could not retrieve earnings history for DJCO.
The company may be recently listed, pre-revenue, or its beat/miss record wasn't available from our source this run. Earnings signals feed the Growth and Catalyst score dimensions — absence here doesn't affect other dimensions.

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DJCO stock a buy right now?

Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $612.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.4); Sector modifier (Technology): -0.8. Chart setup: RSI 41 mid-range, Bollinger mid-band. Prior stop was $569.74. Score 4.9/10, moderate confidence.

What is the DJCO stock price target?

Resistance target: $654.64 (+6.9% upside). Prior stop was $569.74. Stop-loss: $569.74.

What are the risks of investing in DJCO?

V7 low-quality RISK_OFF penalty: -0.5 (Q=4.4); Sector modifier (Technology): -0.8; Weak overall score: 4.9/10.

Is DJCO overvalued or undervalued?

Daily Journal Corp. (S.C.) trades at a P/E of N/A (forward N/A). TrendMatrix value score: 2.2/10. Verdict: Sell.

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What does Daily Journal Corp. (S.C.) do?Daily Journal Corporation operates two businesses: Journal Technologies, which sells case management software to courts...

Daily Journal Corporation operates two businesses: Journal Technologies, which sells case management software to courts and justice agencies in about 37 states and internationally, and a Traditional Business of ten California and Arizona newspapers plus public notice advertising. Journal Technologies generated approximately 80% of total revenue in fiscal 2025, and the company separately holds a roughly $493.0 million marketable securities portfolio concentrated in just six companies, previously managed by the late Charles Munger.

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