Agreed. I have heard from multiple sources that this is well-coordinated group of large hedge funds...the twitter folks are just peons.
I spoke to a rep and they said if you are in the program, your baseline expectation should be that all dividends will get ordinary income treatment...so I turned it off to be safe. I have a separate IB account for EBIX and one other position with no dividends, so it's easy for me to flip flop!
Thanks - I just turned off my participation in yield-enhancement so hopefully moved that rate up tiny bit! Hopefully in time for ex-dividend so I can enjoy cap gains.
I think $25 is a doable LBO after the float is shrunk, and I'd be happy with that, though I understand those with a higher basis and longer hold period might not be. On one hand, you have strong free cash flow yield and cheap/abundant leverage, but on the other you have low growth and a troubled history as a public company (with the investment community). A PE buyer would likely expect to exit back into public markets given the size, and would definitely have to consider the last few years when underwriting exit valuation. That said, one of the biggest opportunities here is to properly tell the story to larger, institutional investors and Wall St analysts.
Seeing chatter about buyouts etc...no matter what happens, a strong buyback is a no brainer in terms of cost of capital. The debt is stupidly cheap these days, and it's a hot M&A market so I doubt RR can deploy $80MM of capital into acquisitions with better math...AND yes, this is indeed a great step in the direction of making buyout math work for a private equity firm and long-term shareholders with basis over $20. But either way I am a happy camper. Strong action by the company. Back on OFFENSE.
Any traders here care to opine on why EBIX starts every single day down on 40-50k of share volume? Strong close yesterday and good day for the market today...and based on the patter I assume EBIX will ultimately end today in the green...what is the deal?
I wonder who is doing the press these days. Spoke to Steve B. frequently but haven't interacted with Aaron Tikoo much. Anyone year spoken with IR much since Steve left?
scratch that - it doesn't affect supply/demand of the stock, but it is accretive to earnings...(though maybe neutral given the price...16 bucks or so)
Agree with prchunter. Also, worth keeping in mind that EBIX just bought back a few million dollars worth of shares via the put option / earnout. It doesn't help us or affect the share price, but they still had to spend the cash.
Fairly certain the shorts drove the SEC and DOJ to investigate and were the primary source of "information". I do not think contacting these organizations is a bad idea all. We shouldn't be afraid of them, and frankly we aren't going to remind them of an investigation they've somehow forgotten. Just as the shorts are telling them to shut EBIX down, there is nothing wrong with us saying that they need to poop or get off the pot as they open investigation is hurting shareholders. EBIX's share price will languish without resolution on this topic. I believe the company operates above board (maybe some tax issues), and want closure. And if I am wrong and they've done something bad, I also want closure. What I don't want to sit with stalled money in a stock going nowhere.
Given the silence from the DOJ/SEC mentioned by RR on the call (nothing since last year), everyone should do what Stuart did.
Reach out and let these guys know that their investigations, if stalled, are hurting shareholders. It's not just shorts vs. the company...there are other stakeholders involved.