Jackson Hewitt Tax Service Inc. (fka JHTXQ)

[Doubledown22]

Everyone trade this at your own risk. I thought that the news of not having a RAL available for 55% of their franchisees was already priced in from earlier news but apparently it wasn't hence the large drop yesterday from the 8K release.

This company will limp along now and try to suck every dollar of revenue it can out of this year's tax season because it faces a major crossroads this next year AFTER tax season. It's lifeblood is the franchisees ability to make revenue and be profitable to continue operations. 55% of the franchisees have taken a pretty sizeable hit against that revenue this year. In and by itself it isn't that big of deal BUT losing the RAL will pretty much cause a lot of franchisees to operate WITHOUT a profit for the year. That is a hard pill to swallow--as a small business owner to work for basically free for the whole year. Yes, there are cost cutting measures, payroll efficiencies, cutting hours of operation during less busy times blah blah blah but at the end of it all remains the same. Only so much blood from a turnip.

All IMO,

DD22