J2 Global Gets Support At 10-Week Line


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With the market resuming an uptrend Monday, investors can again buy stocks. Besides bases, investors can look for secondary buy points to add shares or in some cases initiate a new position.

J2 Global ( JCOM ) is bouncing back from a test of its 10-week moving average. It pulled back to the key support line in light volume -- a positive. The stock has already topped last week's high, but big turnover has yet to come in. The stock cleared a 10-week base in July.

The stock is a bit on the thin side, trading about 300,000 shares per day on average.

Los Angeles-based J2 Global provides cloud services such as online faxing, email marketing and online data backup. It also provides digital media services through its Ziff Davis unit.

J2 Global has posted higher earnings and sales each year since 2003. It has a five-year Earnings Stability Factor of 5, indicating a rock-solid stream of income.

Last month, the company posted a 19% gain in Q2 profit and a 58% jump in revenue. Top-line growth has now accelerated for four straight quarters.

The company's full-year earnings are slated to grow 8% to $2.90 a share, according to analysts polled by Thomson Reuters.

J2 Global is relatively new to paying shareholder dividends. It paid its first quarterly cash dividend in September 2011 and has since raised its payout eight times in baby steps. The company last raised its dividend by 3.1% to a quarterly rate of 24.75 cents a share in August. On an annual basis, J2 pays 99 cents a share, which works out to a yield of about 2%.

Although J2 has one of the lowest yields in the Telecom Services-Cable/Satellite group, it has the highest Composite Rating of 95.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas

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