I feel that the US District Attorney is actually now looking into the people who wrote the articles on Bloomberg and Seeking Alpha, trying to find out if there is any charges to be laid against them. At this point Ebix is going to start increasing in share value and price.
My only wish is that they would have been buying shares back at these low levels.
Strange that I wrote this and two days later an article came out.... I think it had more to do with shorts and put options and less if anything to do with this post... bu t i have no doubt that these guys do read these message boards
I guess that I should have warned people that I thought that it was coming soon. Marc Cohodes and Sam Antar have been making fun of Mr Raina again, a sign to me that they had something up their sleeve once more. And I saw this that Gotham posted at 8:12am September 17:
Gotham City Research@GothamResearch17 Sep
We will be releasing an exposé on a company whose financial statements are materially incorrect, and whose shares we believe are worthless.
I surmised that another attack was probable on Ebix and not some other company. I got sidetracked and didn't investigate further. Sorry that I didn't post so that it would not have been a surprise, but at least no long term damage from the attack so far. And oh yes, these guys do read this message board and others. In fact I wouldn't be surprised if at least one of them is posting here too.
I really liked this tweet, he's gained a lot of respect:
Gotham City Research@GothamResearch17 Sep
The threatening e-mails , and attempts to hack into the account are all cute. Thanks!
Lets be realistic. Any action we see from the SEC will be very limited and mostly token.
The whole bloody market collapsed a few years back due to flagrantly illegal actions,
and where are the thousands of criminals that ought to be behind bars? They are still in the market screwing other folks over!
The GOP has jerked funding for the SEC and deliberately muted enforcement. We pay for that!
The fact that in the last attack, the stock tanked 5 minutes before the bloomberg article came out is clear evidence that it was a coordinated attack. Someone definitely front ran the article. This is clear cut case for the SEC. If RR is unable to get an investigation going to end this, something is wrong with him.
It was posted earlier on the Gotham City Research website but far fewer people would have known about it in comparison to the Seeking Alpha publication. And Roddy Boyd (a friend of Mr Cohodes) was tweeting about it almost 2 hours prior to the Seeking Alpha publication.
Timing of this post is interesting. It appears that the SEC is going after those who violate short selling restrictions so OP's contention that those behind this short attack are being investigated seems pretty likely in light of the SEC's recent efforts to go after those who violate short restrictions. This was just published today:
WASHINGTON (Reuters) - Twenty-two investment firms will collectively pay more than $14.4 million in sanctions to settle civil charges in connection with a broad crackdown by federal regulators into illegal short-selling practices, the U.S. Securities and Exchange Commission said on Tuesday.
The SEC said it had charged 23 firms for violating a rule that prohibits firms from shorting a stock within a five-day window of a public offering, and then buying the same security through the offering.
Only one of the 23 firms, G-2 Trading LLC, is fighting the charges through litigation.
The SEC also simultaneously issued a risk alert that seeks to highlight the enforcement cases as an example to warn the market against violating the short-selling restrictions, known as Rule 105 of Regulation M.
The prohibition against short-selling ahead of an offering and then buying the same stock in the offering is aimed at reducing the chances of market manipulation. The rule applies regardless of a trader's intent.
The SEC said the firms charged all bought shares from an underwriter, broker or dealer participating in a follow-on offering after they had shorted the stock during the restricted period.
Among the 22 firms that are settling the SEC's charges are D.E. Shaw & Co, Hudson Bay Capital Management, and the Ontario Teachers' Pension Fund Plan.
The other firms were as follows: Blackthorn Investment Group, Claritas Investments Ltd, Credentia Group, Deerfield Management Company, JGP Global Gestao de Recursos, M.S. Junior Swiss Capital Holdings and Michael A. Stango, Manikay Partners, Meru Capital Group, Merus Capital Partners, Pan Capital AB, PEAK
Timing may be a one off, but I have been thinking of it for a while. That may be why you are not hearing a lot of noise around this stock lately. Ebix may even know about the investigation into the individuals or firms involved in writing these articles, but not saying anything as it would interfere with the investagation. Again this is just my thoughts, nothing official.
Although I am long ebix and feel it is a strong company I still feel that the really need to be buying shares back here. Even if they are a bit cash strapped
Interesting news and really great to hear. In the case of EBIX, do we know the names of any of the big short sellers? Is there a Pershing Square / HLF equivalent here? That's what is so troubling to me. We obviously know Gotham and Cohodes, but Gotham is a nonsense research firm and Cohodes seems to be out of the investing world formally. I don't think Sam Antar runs a fund either, given his history. So who holds these positions? Who is driving the bus on the short attacks? We are talking about several hundred millions of dollars of short exposure and it's totally anonymous???
I agree and believe also that Yu, Farrell, and others behind this short attack are also being investigated by the U.S. Attorney. I don't have a strong opinion about whether the company itself will be found to have engaged in any wrongdoing because if you dig deep enough a regulator can usually find something wrong. As the saying goes, it is rare to exit an IRS audit without having to pay the government something more because the IRS always manages to find some error in your tax reporting. Hopefully, any negative finding against the company itself will not be too material. However, I do feel that Raina, personally, is likely to be found culpable of some wrongdoing and in particular in connection with the failed Goldman merger. I am not sure how significant the finding will be, but I would bet that Raina does not escape this investigation without any consequences or negative findings, and I would bet that the outcome of this investigation as it relates to Raina personally will be significantly negative for him.
this is going to POP one day - way over shorted - and when this moves - it will move sharp and fast - think about it - and now have added a big Brazil account - so aside from the depressed price and over short positions ...this is a money maker anyway - remember - sharp and fast - I would not want to be short here