Naked shorting (which should be illegal) creates phantom shares, and dilutes a stock price. Sadly this is mostly unregulated, and untracked. That is, when you shorted your shares, nobody is going out and verifying that you were properly loaned those shares. You were allowed to sell on the open market something that you had not borrowed yet to sell, creating phantom shares. Not every naked short share ends up as phantom share, but when a large enough percentage of the float is shorted the effect becomes significant. As the short float goes down, the effect is reversed.
thats the beauty of the market. It gives us oppurtunities like this to make a lot of money. Dont you remember NFLX. How can it be trading at a third of where it is today just a few months ago. The reason is that a lot of people dont understand NFLX. Same is true with EBIX.
You have to get get your facts correct. The "market" is NOT up big in January. Rather, the DOW is up big in January and approaching near highs. The NASDAQ, which EBIX and most tech stocks trade, on the other hand did not perform too well in January and is far from its high of approximately 5.500.