Bogie�s Message to first time visitors:

You should go to the Short Interest Detail. Spend some time there. Look at the columns of data and see the history all the way back to when shorting JCOM first started. Look at the charts linked at the top.

What you will realize when you understand this spreadsheet is that the shorts have always had a large disrespect for this company. You have to understand the early days of Jfax and Efax to know why, and to know why they are wrong.

To get a feel for "the not so good" old days, go to the link named "J2 CEO Resigns" 12/8/2000. This resignation marks end of the old times when jFax and eFax were competitors. Note the midday price of $0.62 on 12/8/00.

Once you have gone back to 2000 to get a feel for the early days of J2 Global, you have to go back even more. A KEY ARTICLE on 8/27/1999 in the Raging Bull is a MUST READ. Check out the Raging Bull article link next.

Did you see this statement? "Most encouraging was the fact that gross margins more than doubled to over 28% for the qtr (Q2,'99), compared to the same period last year". It is hard to believe that they are about 84% now.

The year 2001 was a good one for JCOM. Price went from $0.56 to $2.47. It was such a good year that the stock first became marginable and shortable a few months later, in March 2002.

And that is when the shorting of j2 Global began. And that is where the Short Interest Excel spreadsheet picks up the story; April 2002 split adjusted average price of $3.25; 137,000 shares shorted.

You might ask why short interest grew so fast and why was there so much disrespect for j2 Global? The answer is that two misconceptions were prevalent. 1) Two seemingly simple (easily duplicated) and inept fax over Internet companies that were failing merged together and 2) the price went up 500%.

That's an easy short in anyone�s book, right? Not so this time. JFax had premium services and eFax had free fax over the Internet and separately they were draining each other, but together, the best of each made for a uniquely successful business plan.

It was that successful business plan that short sellers failed to recognize as short interest rose geometrically until April 2003 when it reached over 60% of undiluted float.

At the heart of the business plan is what is called RECURRING REVENUE. It is not good enough to add thousands of customers each period if they are one-time sales. But if they are repeat sales every period, they are recurring revenue.

Recurring revenue is cumulative and predictable. That is why shorts keep getting it wrong; they didn't understand the business plan. All they saw was two seemingly simple and inept fax over Internet companies merged and the price went up 500%.

I suggest that you review the Short Interest Detail spreadsheet again and then move on to the Short Interest Draw "Read Me" and spreadsheet.

Short "Draw" is a method of measuring the money that shorts collect and add to their "short account" when they sell short, and then subtracting the money they pull out of the "short account" when they cover.

At any point in time, the number of open short shares (short interest) times the cost per share to cover (estimated) should also be subtracted from the "short account" balance to find out how much money the shorts have made or lost on JCOM.

A look at the Short "Draw" spreadsheet will show that the losses by shorting JCOM will exceed $200,000,000 if all shares are covered at around today's prices.