Well, I think the reason the shorts are not running to cover is the same reason why others are not running to buy. You would also think with the stampede of good news that both sophisticated, institutional, and regular retail investors would be buying this stock like crazy. With indexes at all time highs, finding good values like EBIX is very hard to do. Certainly, institutional, investment banks, and other sophisticated investors see through the short thesis' smoke and mirrors, but they are not buying yet. This is why the shorts are hanging on, and what we have here is a stalemate where those who want to be long are afraid to buy and those short still feel that they may be able to escape a large loss and cover at a lower share price. What we need is something so positive for EBIX that the stalemate is broken and a lot of buying ensues. Then, the shorts will run for the exits and the long awaited squeeze will happen. With current daily volume at under 250,000 shares, we are looking at a slow bleed here.
What Forbes also does not seem to realize that even if Quindell does not recover a single cent from this judgment it was well worth it financially because it put to rest the negative allegations made against it by Gotham. The mere appreciation in share price and market cap Quindell got from this victory and avoiding the years that EBIX has had to endure of a grossly depressed share price and negative cloud over the business has made this litigation very profitable for Quindell and well worth the effort and expense.
Thanks and definitely made me happy. I now have a ton of cash to invest and just hope I get a chance to acquire more EBIX at $15 or less.
Well, a significant holding of mine (CNVR) was purchased yesterday for nice premium and sold out of the stock so I have freed up a lot of cash and plan on doing a lot more buying of EBIX if the share price does not get away from me. Not willing to pay more than a few cents about $15 and will start accumulating in the mornings so as to take advantage of the short's very predictable pattern.
Ya, the short's efforts to keep the share price down has only been successful because the extremely low daily volume. Today, the trading day is only 2 hours away from the close, and EBIX has not even traded 100,000 shares. This tells me that whenever there is any real positive news on EBI, the stock is going to rocket higher, and the shorts will have no way to keep a lid on share price with such low volume shorting. All of this negative share price pressure on miniscule volume is nothing more than meaningless static in the big picture. I actually am feeling better about this negative price pressure because it shows that the shorts don't have much left to keep PPS low based on the tiny daily volume that they are able to generate lately. The negative articles have stopped, and the shorts cannot even now generate significant downward pressure volume. The table is set for an epic short squeeze, and ALL that remains is the catalyst to ignite the fuse. Once lit, the shorts are going to have to do a lot more volume than they have been able to generate over the last few weeks to stand a chance of keeping a lid on share price, and based on the trading volume over the last few weeks the shorts may lack the capital to do so.
The end for Yu and the others behind this short attack has been upon us now for several months. This civil judgment is the least of their problems. I predict a lot more serious things will happen shortly to those who have been responsible for this short attack and predict that this will occur within 6 months and probably less.
Had only EBIX done the same this short attack would have ended years ago. I hate it when I am right, but I was screaming for EBIX to file such a lawsuit after the publication of the first bash article probably close to 5 years ago.
These idiots do the same thing everyday. Naked short the #$%$ out of EBIX in the am which allows the company to buy back shares cheap and which by the end of the day allows enough buying to usually erase the day's losses and/or often results in the stock closing higher than the previous close only for the same cycle to be repeated the next day. Eventually, the shorts will run out of capital and/or stomach to continue this strategy because at best it is holding the stock in check and not lowering the share price much other than intraday trading.
The key missing component here in my view is as you mention the lack of analyst/major brokerage following. This can be obtained through investment conferences as you mention, as well as other means. If EBIX could obtain some strong buy recommendations with a much higher price target from some respected analysts combined with a detailed report from them debunking the short thesis I think the short's strangle hold here will be broken because no one will be able to contain all the new buying.
Nope, not exactly. Yu and those behind this short attack have a lot more problems than fearing a civil lawsuit, whether brought by a large company or any powerful individual. Things will become clearer soon.
Exactly, meaningless pullback when on such low volume and not driven by any news. All this pitiful flexing of the shorts' muscles is doing is giving EBIX the ability to buy back shares at a cheaper price which means it can buyback more shares and further reduce the float and improve EPS. The shorts are effectively shooting themselves in the foot here because I don't think anyone is taking this pullback seriously and instead all this is doing is helping EBIX and those long on the stock.
I think having all these India offices (total of 10 different Indian office locations) combined with having 1200 employees in India is going to make it very difficult for the IRS to challenge EBIX's use of India's favorable tax laws. EBIX pays no tax in India for these new buildings up and until 2019 and then only pays 50% of Indian taxes owed on these buildings through 2024. With such a meaningful presence in India, I don't know how the IRS could claim that EBIX's Indian presence is a just a scam to avoid paying U.S. taxes.
I would not read much into this. I don't think the lack of volume is anything more than what typically happens right before the labor day holiday. Today and tomorrow are among the lowest volume trading days in the markets all year. I know I am having a lot of trouble getting a hold of people today because a lot of people are not working and on vacation.
Yes, these investigations often last longer than 2 years. And yes, I am NOT worried about EBIX as it relates to the investigation. As I have posted before, the government when doing these investigations will follow the evidence wherever it may lead which is often not where it starts.
I am certain that the investigation is NOT over. However, I am not worried about EBIX as it relates to the investigation. As I have posted before, these investigations often do not end where they start, and this investigation is pending and active. We should no more in a few more months as I have posted several times here over the last week, and that is all I will say about the topic..
Agreed also. If we could get a $1.00 more of appreciation which is sustained, I think the stampede from the shorts will start, especially because I would think margin calls should start. Also, agree with Shanti, the twitter folks are not the real money behind this short attack. Trust me when I tell you that I have strong reason to believe that those who are behind this short attack will in the next few months look at their financial losses from their short positions which they had to cover during this upswing as the least of their problems. The jig is up, and those behind this short attack will soon get everything that they deserve.
I agree that the shorts appear to be trying avoid a squeeze stampede and instead making a controlled exit. I think if we can get some significant greater upward movement triggered by further good news this should attract more new money buying and force the stampede. For now, the shorts are keeping a lid on the squeeze, but I sense that they are having a hard time containing the situation.
Could be the start of the squeeze, although I would like to seem more volume as confirmation. I think when t he squeeze is really underway we should see the highest volume days in the history of EBIX trading.