If you think this is on a PE of 40, I suggest you review the accounts, or your reading of them.
The adjusted diluted earnins are the 'real' earnings to look at, putting JSP on a PE under 10 for the year gone and lower yet for the previous year (earnings over 13p). With a good Xmas, new stores, and good news on the in-store digital development, and on digital SLRs, plus a really nice feel in the shop and management with a decent track record, this IMO is more likely to go the way of that other 'good feel' shop Ottakars.