There is no doubt that CopperFOOL's report is slanted to try and drive the stock price down (reminds me of Manuel Asensio a decade ago) with lots of inuendo built around some specs of facts. Of course he neglected to mention, when he discussed the PEAK suit, that the fraud complain had been DISMISSED, although the other complaints will continue to trial.
I could not have said it any better.There is nothing unique about the shareholder lawsuit against Ebix. You can find similar lawsuits against almost every company whose shares have dropped.
I am not too concerned about this lawsuit. Worst case they may have to pay money to ambulance chasers.
I totally agree with you.The whole premise of investing in Ebix is the Free cash flow yield. You can not fake cash. Ebix spent $63m in 2012 in share buyback and $8m on dividend. In 2013 they will pay around $12m dividend.A fraud company does not pay dividend year after year and that too from operating cashflow. The dividend is increasing and will keep on increasing.
As long as cashflow in intact share price will bounce back .It is a matter of time when Ebix announces next buyback.