I'm confused. Why are you here? You can easily be on message boards of companies without any of these issues....but you are here. Everyone is aware of all the allegations you stated, so you're adding nothing to the conversation.....
That's exactly why we are in it. You're one of those retailer investors shorts feed off of. If not for people like you , who look at rumors without credible sources and panic sell, where would they make their money? You also severe demonstrate lack of attention, so I'll help you out. Big capital letters so it's easier for you to understand.
WHEN A COMPANY REPORT REVENUE GROWTH THAT IS NOT A DECLINE.
I hope you're not short for long but I wish you the best!
1. SEC investigation...2 subpoenas for records with no action nor hint of action.
2. Money laundering charges are rumors from Bloomberg via an unnamed former disgruntle executive source.
3. Revenue Decline? Revenue continues to climb, better look again.
4. earnings decline is due to extraordinary quarter with one time charges.
My predictions for the quarter: A string of contract wins adding greatly to future revenue. Another company being bought out. Nothing forthcoming from the SEC, US Attorney, FBI, or the IRS since accusations from whistleblowers are based upon speculation rather than fact. The shareholder lawsuit is dismissed. The Microsoft lawsuit is settled out of court. And a lawsuit is ignitiated by Ebix and the unnamed sources will finally be revealed to the horror of all shorts. The SEC, US Attorney, FBI, and the IRS begin investigations of others outside Ebix.
Although there were some extraordinary charges, was there also not a substantial benefit by adjusting the earned buyout by 5.8 million? As I understand their footnote, they reduced their G&A expense by this amount.
I agree that this is, indeed, how this saga can turn out, but time is fast running out. As I have said repeatedly, this situation will only play out as you describe if and when EBIX files suit against those who are circulating these false rumors. This is the first step that must be taken before this situation can resolve itself as you describe. This will provide some calm to nervous customers and investors, a platform to challenge the false allegations in detail, and chill future false allegations from being made so that EBIX is not met with more false and misleading articles every time it starts to come back. If this lawsuit is not initiated very soon, I greatly fear that things will unravel at EBIX as a result of a substantial slow down in growth combined with some existing customer defections. These new potential contracts that you describe in my view will never materialize if things remain as they are now. Most new potential customers will likely take a pass on EBIX until they feel more comfortable about these allegations which can only happen when the government closes any pending investigation(s) which may not happen for a long while or when EBIX fires back and demonstrates the lack of merit of the allegations in a detailed way and exposes the lack of credibility of those who are making these allegations. The clock is ticking and time is running out for EBIX. If they EBIX does not act soon, I fear that the numbers next quarter may show a substantial slow down in growth which will create negative inertia which will be very hard to counteract and likely fuel new allegations of EBIX's imminent demise so as to make new sign ups extremely difficult.
It is very hard to change the direction of a large rock once it gains momentum rolling down a hill.