Not a good suggestion at all. All Raina has to do is to have a investors day in NYC and invite big hedge funds and make its case. Hire Goldman Sachs to raise some money through convertible bonds. With Goldman as their partner, they will move the stock above 30 and shorts will start exiting their positions. Take the proceeds from the convertible offering and buyback more stock at open market all the way to 20 and use the rest of the cash to buy a few more small firms.
They had an investor day in NYC 3 years ago. I'm all for a 20:1 reverse split. This will discourage traders and bring in investors. Look at what happened to BH after it did a reverse split. Sardar is no fool. He and Raina have a lot in common.
I emailed Raina about this suggestion and quoted BH's Biglari example few months back (no response though). We can solve this shorting issue in a matter of a month. A high stock price discourages traders and flippers. It attracts true owners who trade infrequently.
I even recommend 20 for 1. It suits Raina's personality of not courting wall street.
There are a number of actions that Ebix could take to encourage longterm shareholders and to have the stock price more closely reflect fair value. They don't do them. Possibly Raina likes the low prices at which he can buy back stock.