Main reasons ebix did not grow is distracion from shorts, inability to use stock as currency to buy businesses, expense created by investgatins brought on to Ebix by influence on regulators to increase profits of shorts.
Unless ebix punish shorts they are here to stay for many more years. There is no business out there cheaper then ebix. It fudiciary responsibility of board to buy only company cheaper than ebix.
I am not advocate to create sqeeze but I want to see floor on the price created by agressive buy back so coservative investors invest in ebix and we shold see fair price $24pps.
ebix need to show determinaton by anouncing buyback program of 10 million per month for next 3 years. I do not advocate buyback for more than fair market price.
I had some sleepless nights as substantial part of my networth is in ebix. It would fair to ask for floor @20 so RR can start his majic to grow ebix again.
If it can not be found, it will be great if Ebix can use 200 mil loc and 50 mill per year free cash flow which can lower share count below 17 million so there will not be any shares left to short. Short have been after Ebix for 3 years. So RR should use next 3 years earning and along with all loc 200 mil.350 mill can buy 25 million shares. 37-25=12 million can be future outstanding shares in best case.
Looking at trading data over 18 months shorts on Ebix are done with great discipline. In past they were trading ahead of news.Is there any way to find out which hedge fund it is? If we find out it will easy to invite several time stronger fund to come and squeeze them.
If you own several million shares in a company. and company has money. You really do not want to sale shares you get paid with for day to day living. It will be wise to just take divident and maintain your life style as you know if you know that it is undervalued and it has lot of potential.
I believe dividend will continue as RR and foundation needs money for day to day. Last thing we want is insider saliing shares to make their ends meet.
Stuart also do not forget that interest rate to be paid to bank for 200 million dollars is which AAA credit customer would get. With current interest rate enviornment it can stay at 1.5% for next 5 year.
Stuart: I remember that loc received by ebix was 150 mil+ option to increase by 50 mil. This cash along with fcf of 40+ mil per year is all available for buyback. Loc is unresriced for buy back. Having said that technically ebix wii have 350 million available for buyback over next 3 years. If short decide to feel good by keeping price low @14 dollars we all and RR should be happy that we all will more than double percentage ownersip in ebix.
If I remeber corectly RR was to double % ownership by GS buy out @cost of 20 pershare.
I believe it will be fine for us if RR stay the course and accelerate buyback at such low price so we all can enjoy smart moves of RR.
Sentiment: Strong Buy
You have given so much mis information in this post. I think you want to confuse readers by stating RR bough shares in his personal account and at same time you write that you have finance degree. I do belive that you have. But your main goal in postings seem to be spreading misinformation since you first arrived on this boardjust few week ago. You seem to know ebix well Just makes me think you may be connected with gotham.
I have profited every time I sold put. It is hard to pick up shares if you have standing order as it never goes that low if you are trying to get big quantity, trade trigger also does not work as volume during manipulation is very low.. So simply have a standing order to sell put . It always gets sold during low price period of day even though share goes down by manipulation and trades only few hundred shares but you could end up selling put which can get you several thousand shares few weeks later at low price of that day. Naturally you can always sale few shares at high of day so you can not end up with over weight situation. as you want to always pick up some when it drops hard.
Sentiment: Strong Buy
I congratulate for your theory. You did make a logical point. Wish you well, I hope you double down on it and let some more people in to buy this cash cow.
There was a PR form EBIX in this respect just few weeks ago mentioning that there are several millions shares holders who have made long term commitment to EBIX as investment. I am sure those mutual funds or institutional investor do lend stocks to shorts and they make nice cashflow form it in their holdings. We should see some hedge funds coming back in EBIX as market fear in going away as several things are geting ffixed as days go by. example putin is drawing back army. Ebola fiasco in Dallas is now well understood as mistake of local people as cowboys do not know how to dot i and cross Ts. Fear that non blacks are more likely to catch ebola has died down. ( as index patient's did not catch while they were made to stay in soiled home but suppsadly protected americal nurses caught ebola. All this type of clarity should bring leverage back in market and we should see EBIX move upto 18 in near future around earning time.
It will be great if they complete buy back before real earning growth happens other wise price will go too high to do meaning fulbuy back.
I now strongly feel weakness in share from deleverage by hedge funds. Shorts will sell today to create doubt about PR today. RR should be ready to take advage of it and take away credibility of shorts. I have set my triggers to buy today.
Sentiment: Strong Buy
Looks like they dumped all the shares they covered in morning. Later in day as market was dropping from high of the day Shorts took advantage of it and dumped all those shares and took it down and triggered stop loss.
Shorts on board are discouraging longs but shorts are actively covering shares since williamzim showed up on board. Price is staying down likely from some hedge funds de-leveraging over last 2 weeks shorts are always trading ahead of long and looking at daily data on shorts they are definitely buying this shares ahead of next earning. They never needed to come to this board before but they may have lost their inside source form EBIX and they are now systematically exiting their short position. If longs on this boards buy their story it can help them buy back few million shares. My hope is RR is buying at the same time as this low price of share will not last very long time.
Doctors are trying all chemo drug including Gleevec. I would beg to Harvey to send Iclusig to Africa asap and get some field assesment during this emergency.
Feb 29, 2012 9:00 PM GMT+0200 Two Novartis AG (NOVN) leukemia drugs, Gleevec and Tasigna, fought the deadly Ebola virus in laboratory experiments, suggesting the products could be used against a disease for which there are no treatments.
The two medicines stopped the release of viral particles from infected cells in lab dishes, a step that in a person may prevent Ebola from spreading in the body and give the immune system time to control it, researchers from the U.S. National Institute of Allergy and Infectious Diseases wrote in the journal Science Translational Medicine today.
In some forms of leukemia, Gleevec and Tasigna reduce levels of a protein called Bcr-Abl that causes malignant white blood cells to multiply.
The researchers found that Ebola uses a related protein called c-Abl1 tyrosine kinase to regulate its own reproduction. They showed that by blocking c-Abl1, Tasigna may reduce the pathogen’s ability to replicate by as much as 10,000-fold. In addition to showing how the two drugs might be used to treat infected patients, the findings also suggest that new medicines could be developed to target c-Abl1, they wrote.
specially they are privileged bunch all sec rules do not apply to them.
William you are probably right price of share may be reflecting sales in Q3 but small group of people (shorts) have been deciding price per share.
Are there more people working in EBIX feeding information to shorts which emboldens then not to cover @ 13.33.