Yet Another Value Podcast Roy Swisa on $DJCO
Mar 3, 2026
Roy Swisa, a value investor and researcher who consulted for Daily Journal, joins to discuss his work on Journal Technologies and how niche, compliance‑heavy software earns durable moats. He covers primary research tactics, using RFPs and AI to track product shifts, the sum‑of‑the‑parts valuation of a complex company, and how procurement, proprietary data, and incentives shape vertical SaaS outcomes.
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Vertical Government Software Is Inherently Sticky
- Vertical government software is unusually durable because procurement is slow, regulatory complexity is high, and switching requires preserving historical logic across years.
- Roy used public RFPs and AI to find milestone-focused implementations (e.g., Orange County) as evidence the new CEO is moving Journal Technologies from services to product.
RFP Scrape Found Real CEO-Led Product Change
- Roy traced Journal Technologies' shift by scraping public RFPs and spotting granular evidence like project milestones in the Orange County bid.
- That procurement evidence convinced him the new CEO is actually changing contracting practices, not just talking.
Sum Of Parts Masks Re-rate Potential In The Tech Arm
- Sum-of-the-parts valuation for Daily Journal splits a large marketable securities sleeve and a smaller core software business; free cash flow and growth re-rate are key to valuing the tech side.
- Roy estimates JTI's EV around $150-250m and 2025 FCF roughly $13m, implying a potential re-rating if margins and growth improve.