GlassHouse Research has published an initiation report on j2 Global (JCOM) with a 64% downside target. Using its Twitter account, GlassHouse claimed that there are a “myriad of accounting red flags regarding its negative organic revenue growth and suspect acquisition accounting combined with a lack of accounting experience in key positions.” GLASSHOUSE SEES 64% DOWNSIDE AHEAD: In a report published on Wednesday, GlassHouse initiated j2 Global with a target price of $24.77, saying the company “uses a myriad of acquisitions to conceal non-reported organic declines and stagnant earnings.” “(j2 Global’s) continued use of acquisitions concurrent with declining ROIC and organic growth will cause its demise,” the report read. Further, GlassHouse said it “find dubious liability transactions within the company’s acquisition accounting that lead us to believe future reserves are being artificially created. (…) TTM non-GAAP income ($6.04) now stands 134% above GAAP income of $2.58, representing the highest deviation in (j2 Global’s) history. Persistent material exclusions of intangible amortization expenses, acquisition-related costs, and stock-based compensation obfuscate (j2 Global’s) true economic earnings.” Overall, Glasshouse argued that there is “an approximate 64.2% downside to (j2 Global’s) current share price in its future.” PRICE ACTION: In late morning trading, shares of j2 Global have gained about 2.5% to $70.94.