I spoke to the IR person about two weeks ago regarding the dividend and was told that it is up to the board of directors. My honest opinion is that the people at EBIX have no idea about how to relate to investors and about the importance of providing straight answers to shareholders. If it were not for the fact that Robin Raina has most of his wealth invested in this company, I would sell my shares. Someone has to get through to them and make them understand that they are doing a horrible job of communicating to the shareholders. Even the losers who participated in the conference call did not have enough sense to raise a question about the dividend. My advice is to keep calling the IR guy to try to get a response about the dividend.
Other than just a logical guess, I was curious if you had any information to support this possibility. Nothing would make me happier if this were true and would be the best possible explanation for why the company has been so quiet, has not taken strong action to counter this short attack, and failed to take advantage of the single digit share price by purchasing its own shares as was authorized.
They did issue a dividend, made us all happy, us happy, was an unintentional consequence. They increased the dividend, made us happy, a real company, then, they got the deal of the century crushed and had no reason to continue the dividend, so, they just, did not pay it. No, explanation. Just the stiff. I also called ebix but they do not have any Investor Relations personal and did not answer or call me back. Just a name to fill a required slot on their company roster.
There is one good reason why the company has stayed quiet and not been aggressive with the buyback - they might be shopping another buyout. While my emotions are leading me to a variety of places (and I spend a lot of the day in Stuart's camp), I think this is still the most likely scenario. Investigation + deal = little communication.