Management is the biggest reason I own this stock - (believe it or not) - not the fundamentals! Not that the fundamentals aren't good (they are - at least for semi-submersibles in North Sea) but if there's any management I'd trust, it's Awilhelmsen group.
Worst case scenario is I break even after a couple of years and the best case scenario is that I get close to a double my initial investment.
Why can't you "take it much longer" ? Why do you let the price dictate your emotions? If you own EBIX shares, it means you are a partial owner of a company named EBIX, Inc and are entitled to your share of profits and losses. Just because someone out there is willing to sell a part of the same company at a stupid price doesn't mean you should get all worked up. I mean, I can understand the feeling and I suspect it's because you don't have a rock-solid conviction on your holdings and just follow the crowd or your "hunch."
My advise to you would be read, and re-read chapters 8 and 20 or "The Intelligent Investor" by Ben Graham and remember not to let the mood swings of Mr. Market trick you into speculating, selling in panic or trying to time the market.
Nothing fundamentally has changed about EBIX in the last few days or weeks or months. Unless fundamentals take turn for the worse, I see really no reason for anyone to sell. Think of market drops as an opportunity to buy EBIX at a wonderful price if you have the spare cash.
Pretty much agree. It seemed like the stock raced a bit ahead of itself to $17.5 without any significant news (the lawsuit was settled which everyone knew it would, but the no news on the investigation).
Today's price action may just be from nervous longs who want to get out of the way in case EBIX/Raina drops any bombs during tomorrow's results/Conf call. I can't blame them - this stock is one of the most hated and the volatility is off the charts. Just one misstep and stock would race back to $12.
I'm not heading into it expecting too much. As long as revenues don't fall off the face of the earth and there's some meaningful progress in debt repayment or buybacks, I'll stay long.
Any significant positive wins or news of a huge buyback are gravy, of course.
What does everyone here think about the company's 2015 guidance?
The company bought back 5 million shares at $70 and the price falls to...$65? Doesn't make sense to me. Who's selling here and why?
Yeah I read that too. But that boilerplate language is commonplace for most tenders, no?
Plus, if that happens, "then the Offer must remain open, or will be extended, until at least ten business days from, and including, the date that notice of any such change is first published."
Their prospectus mentioned a "maximum Final Purchase Price of $66.50 per share." Does it say that if the share price crosses $66.5 prior to tender deadline, they will raise the offer price?
I wrote a few $11Jun2014 Puts for an annualized return of around 23%. Wouldn't mind putting some cash to use buying EBIX at a bit over $10/share.
As of 6:52 EST, IB has 100,000 shares available at -9.43% rebate rate if you want to borrow.
My experience is that you'll only get a fraction of that rate and won't even have all your shares fully lent. Couple of months ago though, you'd have a higher rate and most of your shares (over 90%) lent. Demand from shorts seems to be abated a bit.
Did you opt into their stock yield enhancement program? I believe you have to manually opt into it before your shares are eligible to be lent.
Only negatively. Never positively...Fear is a much stronger emotion than greed.
Seekingalpha just mindlessly regurgitated last year's #$%$ and stock dove 6% it seems.
@bkanwar2, I think you are confusing puts with calls. In this case, puts changed hands and someone, somewhere thinks just bought insurance that pays off with EBIX goes below $11.65 within a month. Most likely it's someone who has a huge long position who wants to insure his position in case the stock sells off due to earnings drop.
Having said all that, I don't think all that unusual. Sure, million shares are at stake but this has happened before (especially before short articles come out). At least it hasn't changed my sentiment/outlook of EBIX.
I see what you're saying, but I think - fear being a more stimulative emotion than greed, negative articles (especially when they imply fraud) bring out much more reaction than do positive articles (that paint a rosy scenario).
Add that to the fact that market was nearly convinced that EBIX was a fraud (due to attorney general's investigation) - I really don't believe that any more positive articles (about how amazing EBIX is) would move the market. To further my point, I will note that there have been a couple of positive, in-dept articles on SeekingAlpha that were published after Gotham's smear job and yet failed to achieve any meaningfully positive price action.
Either way, I'm not complaining and I might very well be wrong, but that is how I think.
I disagree as well. Such articles are published all the time but no one cares about it. They're just opinions and any number of positive opinions will not affect EBIX at this point. The market is desperately awaiting facts such as outcome of lawsuits, investigations, etc. Even a big fund establishing position in EBIX will be greeted with a yawn.
Wondering the same. The fact that 14 million shares are short boggles my mind. Where are the shorts going to get the shares to cover, from? Someone please, oh please, tell me!
No idea but their managers would be able to decide which stocks enter their funds, right? For example, take a look at Vanguard Information Technology Index Fund Admiral Shares (VITAX). Their managers would have to proactively decide to add Intel, Cisco and Visa to the top ten holdings of their fund, out of the many IT companies available, right?