Jackson Hewitt Tax Service, Inc. (NASDAQOTH:JHTXQ)

CAPS Rating: 2 out of 5

The Company provides computerized preparation of federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name.

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Member Avatar mdluchies (< 20) Submitted: 4/2/2011 2:38:35 PM : Outperform Start Price: $0.65 JHTXQ Score: -154.43

Position inside Walmart with offering online tax services looks promising. Predicting $2.50 by 4/2013

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Member Avatar johnnykuntz (< 20) Submitted: 12/28/2010 10:04:05 PM : Outperform Start Price: $2.25 JHTXQ Score: -164.23

JTX

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Member Avatar PickThatBooger (28.80) Submitted: 12/28/2010 11:01:45 AM : Outperform Start Price: $1.34 JHTXQ Score: -165.90

Come on! give me a multi-bagger here, please.

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Member Avatar DannyNOLA (< 20) Submitted: 12/28/2010 2:06:38 AM : Outperform Start Price: $1.04 JHTXQ Score: -170.96

Risky stock because of its high debt that needs to be rolled over before 2011 year end.I bought some at $5-6..doubled down to about $2.5/share and just bought some calls...small bet, hoping for a big payoff :)

Positives:
-RAL financing available 100% for 2011 - this is HUGE for them right now
-H&R Block LOST some RAL financing so JTX should be able to steal some market share in the lower AGI bracket
-Walmart locations are picking up - JTX had 1200 WMT locations in 2009 and 1770 in 2010. By my calculations, the returns per WMT location in 2009 were 237 and 243 in 2010. The increase was very small because they didn't have a lot of RAL financing in 2009. I expect that number to be a lot better in 2010
-OK, this one could be a bit more far fetched and further down the road...immigration - sooner or later the mess with all of the illegal immigrants in the US needs to be fixed. One of the conditions that needs to be met to become legal will have to do with filing current and back taxes for probably the past couple of years. Filing back taxes using Turbotax is not that easy (or at least it wasn't easy for me) and I actually personally used JTX to file taxes for a previous year. I was reading in a Spanish language newspaper two years ago that was urging its readers to pay their taxes. This is how I actually got interested in JTX since it caters to people in the lower income bracket and WMT locations should do well for them.

Negatives:
-too much debt - personally I tried to avoid highly leveraged companies
-no margin of safety - if company goes bankrupt nothing will be left for the equity holders - currently it has negative book value with still a lot of goodwill on the books
-RALs have bad rep and there is some regulatory risk
-25% of franchises are up for re-negotiation and JTX might have to offer sweeter deals to the franchisees

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Member Avatar ttaxea1 (< 20) Submitted: 12/16/2010 10:17:11 AM : Outperform Start Price: $1.39 JHTXQ Score: -166.42

JTX is poised to recover and have a great tax season due to expebse reductions and obtaining much more RAL coverage than last tax season.

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Member Avatar 1963spencer (47.80) Submitted: 10/22/2010 4:54:23 PM : Outperform Start Price: $0.98 JHTXQ Score: -173.35

Hewitt. I am finally going to add this as a pick, although I am going to most likely loose money on this. I will juat sell it next year and use as a los if it does not attain a Bank that will give out Tax Return Loans. If it does obtain a Bank....... I put a but rating on it aroud 10.00 to 25.00 between mind 2011 to years end next year and a return of its dividend if it had one...

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Member Avatar stockfreak1 (< 20) Submitted: 7/13/2010 11:52:48 PM : Underperform Start Price: $1.47 JHTXQ Score: +189.18

going bk

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Member Avatar Jmachine (< 20) Submitted: 1/13/2010 11:21:30 AM : Outperform Start Price: $3.91 JHTXQ Score: -181.72

Excellent entry after the big drop. News can't get any worse.

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Member Avatar jimboyabe (92.22) Submitted: 1/7/2010 5:15:17 PM : Outperform Start Price: $4.94 JHTXQ Score: -181.83

New MF Member 2010

JTX, Jackson Hewitt Tax

Schwab lists it as “D”; under perform, down right sell.

Needing to add to the sector for a “balanced portfolio” I searched and searched for something I liked, JTX:
· Market Cap = 142M
· P/E = 6.74
· F P/E = 6.4
· Price/Sales = 0.57
· Price/Book = 0.69
· BV/S = 7.1
· Profit Margin = 8.42%
· Operating Margin = 22.44%

I like to look at charts and for the two years prior to the start of the recession the stock traded above $25. Beginning April 2009 the stock has been hovering about $5, +/- $1. With the book value and prices/sales numbers I would like to believe the downside risk has been removed and the upside is a double, perhaps a double bobble in the next two years.

There was an issue with the bank providing RALs and RTs but that has been resolved.

In the past 3 months after purchasing (Oct 2009) JTX the stock has already earned 6.57%. What is ahead…

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Member Avatar dameanchen (61.00) Submitted: 12/29/2009 10:20:08 PM : Outperform Start Price: $4.24 JHTXQ Score: -184.50

The primary reason for the recent fall was due to the discontinuation of support from Pacific Capital Bancorp (PCB) for the Tax refund anticipation loan. The reason for the termination by PCB, in turn, was NOT due to profitability of the deal itself; but because of failure of PCB to get regulatory approval.
So whenever JTX could find another partner for its loan (& it better be soon), the price will go up again.

On the negative side, the # of tax filer will probably reduce the 2009 tax year; and the debt is really a bit high; so another may bad news may really bring it down it knees. But the valuation is just too darn attractive vs the risk (P/E~5.5, P/S~0.5; P/Cash Flow ~2.8)

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Member Avatar PeteZar (< 20) Submitted: 12/24/2009 2:52:49 PM : Outperform Start Price: $4.50 JHTXQ Score: -183.42

Tax season is here.

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Member Avatar ruddtg1 (60.32) Submitted: 12/14/2009 6:45:45 PM : Outperform Start Price: $5.03 JHTXQ Score: -185.80

solid company, significantly undervalued

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Member Avatar bluecollarbroker (35.73) Submitted: 12/14/2009 9:10:25 AM : Outperform Start Price: $5.20 JHTXQ Score: -185.12

upside

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Member Avatar dangerdynasty (52.88) Submitted: 12/7/2009 10:40:35 AM : Outperform Start Price: $4.09 JHTXQ Score: -186.21

almost tax season

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Member Avatar OptionsWizard (< 20) Submitted: 3/31/2009 7:32:29 PM : Outperform Start Price: $5.14 JHTXQ Score: -266.58

Should go to 9 or 10. Buying this in real life.

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Member Avatar OutstandingOdds (97.02) Submitted: 6/13/2008 10:21:35 AM : Outperform Start Price: $11.86 JHTXQ Score: -159.33

Investors have the opportunity to purchase this quality business with stable and growing cash flows at a depressed multiple to those cash flows...at roughly $12 JTX is just too cheap for a capital light business with above average growth prospects and a history of using its excess cash to buy back stock.

Although the near term outlook is admittedly not great, long term investors willing to take advantage of a classic case of "time arbitrage"...should be well compensated for there efforts, and not just because JTX is paying a 5.25% dividend yield (with a sustainable payout ratio). JTX also has several growth drivers that should propel EPS growth in the mid teens for years to come.

Despite the recent turmoil JTX is still a great business with little capital requirements, good growth potential, not to mention a huge addressable (& highly fragmented) market. Current negative sentiment makes it impossible to know how JTX will do over the next few months, but at today's prices patient investors with an eye towards the long term should enjoy outsized, risk-adjusted returns over the next 3-5 yrs

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Member Avatar berkybucks (91.22) Submitted: 5/31/2008 11:23:50 AM : Outperform Start Price: $13.45 JHTXQ Score: -153.67

great growth rate

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Member Avatar ShanNoz (42.58) Submitted: 4/24/2008 11:53:21 AM : Outperform Start Price: $13.46 JHTXQ Score: -155.26

Those that have the money to invest will be looking for dividends

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Member Avatar YoungInvestor99 (98.97) Submitted: 4/7/2008 7:06:41 PM : Outperform Start Price: $13.40 JHTXQ Score: -157.72

It looks like the market thinks people don't pay taxes because a recession is looming. This will be back, it did not deserve the hit it took. Plus its an IV recommendation (not that I am totally impressed by all their picks)

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Member Avatar hartwell1234 (< 20) Submitted: 3/24/2008 4:20:31 PM : Underperform Start Price: $11.86 JHTXQ Score: +159.33

I just think it will

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