Matthew Peterson of Peterson Capital Management presented his in-depth investment thesis on The Daily Journal Corporation (US: DJCO) at Best Ideas 2019.

Thesis summary:

The Daily Journal Corporation is an American publishing and technology company with hidden assets and off-balance sheet value. With no analysts or investor relations department, few understand the transformation that has occurred.

While historically a legal newspaper publishing company, today DJCO operates a SaaS business model providing case management software to courts and government agencies around the U.S. and the world. Licensed software for many ten-year contracts is currently in the multi-year implementation stage. Implementation is expensed as provided, while the long-term recurring high-margin revenue is not yet included on the income statement.

The board includes high-profile names such as Rick Guerin, Peter Kaufman, and Charlie Munger.

Listen to this session:

slide presentation audio recording

About the instructor:

Matthew Peterson is the Managing Partner of Peterson Capital Management, LLC. Matthew has over a decade of experience with global financial services firms including Goldman Sachs, Morgan Stanley, Merrill Lynch, American Express, and Ameriprise Financial. Prior to forming Peterson Capital Management, LLC and launching Peterson Investment Fund I, LP, Matthew split time between Wall Street and London as Capital Markets Manager in the Financial Services Vertical at Diamond Management and Technology Consultants. Matthew worked as a member of both the U.S. and U.K. offices, with expertise spanning from risk management to derivative processing. During his tenure with Diamond, Matthew worked with top-tier investment banks, global payments firms, and international insurance companies to deliver high impact solutions to his clients’ most challenging business problems.