There is 500 outstanding $30 call options expiring today, so 50k shares. If the stock price is above 30, whoever is holding these will execute them today. Chances are they don't want to tie up their capital by holding these shares, or they would have just bought shares in the first place. So they execute the option and sell the shares right away. This selling pressure is enough to keep the price just at 30 for the moment, but will not be there Monday or perhaps even this afternoon.
Craig Hallum updated their yearly earnings estimate for 2015 as well. Its still way too low though. Should be about 2 EPs.
All old talking points from people who don't understand tax law. To sum up the article, they wonder why ebix has such low tax rates, and then wonder why they have so many overseas subsidiary's.
From the quarterly announcement: "We also intend to make distributions of net realized capital gains, if any, at least annually." From the CC "For the full year 2014, our net investment income as adjusted was $0.91 per share, relative to distributions declared of $0.89 per share. Realized gains during the year provided another $1.30 per share of earnings with no accompanying distribution requirement." So to keep RIC status, they don't have to pay the $1.30 out, but they intend to. Because this change happened in the Q1 2014 release, at least annually would be at the latest with next quarters dividend.
This change was first announced in Q1 2014 earnings. That's why the quarterly dividend dropped from .26 to .21 at that time. I thought they would add the gains on to this dividend, being year end. I guess they are waiting for a full year of distributed gains, so next quarter's dividend should be huge.
We can use them using stop loss orders too. Set up some alerts, and when you see a quick drop on no news, buy a few shares. I got a few at 25.75 today, and will sell them within a few hours or days for 5% more. Try to keep your trades and investments separate in your mind though.
I am under the assumption the fund/group short is bumping margin requirements. We should see volume in the next hour from broker sales if correct.
Blackrock Kelso does borrow at a shorter term than they lend, so higher interest rates would hurt in the short term. Long term the return would go up though as the loans get rolled over. The're really not all that leveraged right now though and in a better position than a lot of BDCs. The quarterly dividend should be out any day now, 21 cents regular + a catch-up of equity gains sold throughout the year. I think it will surprise a lot of people. Still skeptical of new management, if they don't reduce fees, people will continue bailing.
Great trick Stuart. Get people to look at a stock with a forward PE of over 100, so they can realize how far Ebix has yet to go. 1.3 million shares covered on $6 run up. With a more normal short ratio, we have about 11 million more to go. Some easy math shows $73/share is what to look forward to.
Depends on the broker. Sometimes an open sell order stops them from being borrowed, but not all brokers have that policy. A safer bet is to put them in a cash or nonmargin account.
I agree some people are expecting a bit much from press releases. However they do have to release the voting results, and just after last quarter end of they gave a buyback update. With the recent run up in stock price, it would make a difference whether ebix bought 1 million or 2 million more shares back below 20.
They had to tally the votes up. Should be something tomorrow am. I just hope it includes a buyback update.
Meeting was scheduled to start 15 min ago. I was not able to go. Any updates would be appreciated. Was really hoping for buy back update.
If Craig-Hallum doesn't start upping their earnings estimates for 2015, every quarter will show a huge beat. They made that estimate a long time ago, and haven't factored in acquisitions, recent organic growth (though small still better than earlier predicted contraction), reduced share counts, new deals signed, etc.
The real question now is, do the shorts have enough equity to not get margin called. Will be answered on the next two hours. By the last few minutes, doesn't look like they have enough.