Every day, the sun rises on Wall Street, and a plethora of professional analysts wake with new ideas on how they feel about certain stocks. Here at the Fool, we examine some of these picks -- and the track record of the firms behind them -- so individuals can use this to make better investing decisions.
In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 93,000 investors -- many of whom demonstrate better investing insight than published analysts.
In the case of Internet fax and communications firm j2 Global (Nasdaq: JCOM ) , more investors in the CAPS community have recently turned positive on the stock -- enough, in fact, to push its rating from four stars to the (highest possible) five-star ranking. So what's the story behind this communal upgrade? Let's tap the various resources of CAPS to find out.
Certainly, a nearly 30% drop in j2 Global's share price over the past six months has affected how investors feel about the company. While the company has seen some impact from the economy as many of its credit-exposed clients cut back on fax services, some investors see the resulting sell-off as overdone. The company has also stepped in to snap up more of its own shares, putting a plan in place to buy up to 5 million shares.
Indeed, j2 Global still holds a sizable moat against competition because it has not only integrated all its communications services, but also provides them over a proprietary network. To match this advantage, potential competitors like Microsoft (Nasdaq: MSFT ) or business services giant IBM (NYSE: IBM ) would have to tie up with telecoms like AT&T (NYSE: T ) , Verizon (NYSE: VZ ) , or Qwest (NYSE: Q ) .
All-Star CAPS player nutdoctor wraps up the essential elements for his bull case on j2 Global:
This company has an idea whose beauty is in [its] simplicity, originated to solve a real world problem. Significant growth potential, a reasonable moat based on patents, and apparently very well managed. They are executing on their strategy.
To see what the very best CAPS analysts are saying now about j2 Global -- as well as their track records at picking winning stocks -- head on over to CAPS and have a look. Unlike analyst opinions reserved for paying clients, the community research and resources in CAPS are totally free.