A cautionary tale for RR! He better seriously think carefully here about trying to once again pull a fast one here like he tried to do in Goldman fiasco and to start to again run the company to serve the best interests of shareholders other than himself, or he too could find himself broke and behind bars.
Well, since I think no one would disagree that I hold the title of the chief such complainer, I will respond and state that I think your comments provide an excellent summation of why I and others continue to hold and believe in this investment. However, you misunderstand one important thing, I am not complaining about volatility, but instead a gross under performance of share price over a lengthy period of time of about 6 years. The stock being now a few bucks higher than it was 6 years ago in light of the company's exceptional business performance during this period is unacceptable. I sat back and watched the shorts over last quarter very slowly walk share price down from 38 to 31 on extreme low volume with management doing nothing to attract more volume by making even the slightest effort to sell EBIX's story so that we were already not so beat down before the recent correction, thereby making it so much more unnecessarily painful. What I am complaining about is I have sat here as a shareholder for 6 years and watched share price grossly under perform while management fails to do the necessary things to resolve this major and never ending problem with this investment.
Or give an interview for an article or brief television appearance, or announce a new contract win when the other party allows it, or for that matter direct and allow the company to say anything about its business to the general public. EBIX used to do these things about 6 years ago when the stock traded just below where it is trading now. Since the Goldman fiasco, the company and RR have pretty much said absolutely nothing to boost shareholder confidence, nor attract additional investment capital. My only explanation is that RR does not want the share price to rise because he knows what to do to make it rise, but he does none of the things to accomplish it -- all of which require very little effort.
The short attack is anything but over and behind us where the short interest is rising and is at nearly its highest percentage of outstanding shares ever. I continue to own the company only because RR has so much money tied up in the company that he will do what is necessary to protect his money which is why, for now, our interests are aligned. Otherwise, I would be long gone. I think RR is brilliant and is doing an A+ job on the business of the company, but as I repeatedly stated great business execution is often not reflected in share price. EBIX is such a good example. Eventually, I think for no other reason than those that benefit RR we shareholders will get rewarded which is the only reason I still own this stock.
Yes, you knew that you would. In thinking about your comment more, I would add that based on my nearly 25 years experience as a litigator and my personal conversations with the U.S. Attorney heading the investigation of RR and the company, had Goldman not voluntarily walked away from the merger and had the merger gone through under the terms proposed, RR would have been charged criminally and likely convicted. Moreover, the fact that the stock has not appreciated in 6 years under RR's mismanagement is even more troubling when you consider that this is a period of perhaps the single longest and most substantial bull market in U.S. history which EBIX shareholders missed out on. As far as from a shareholder's perspective, RR's self serving management style deserves a grade of a "D" to and "F".
Unfortunately, there is no viable alternative. I would rather not waste my time engaging in an alternative which will almost certainly yield no beneficial results. Unfortunately, there are some problems which have no solution and wasting time and effort on a solution which will not help just does not seem to me to be a good use of my time.
You are so beyond way off here and completely ignore history. RR has done only a great job running the business of EBIX, but otherwise he has miserably failed on every other level. RR is a THIEF who literally tried the steal the company from shareholders where he tied to sell us out at $20 per share and structured the deal so post going private he would personally get nearly double the equity in the then private company at our expense. This resulted in a federal investigation of him personally and literally years of the stock languishing and nearly put the company out of business. Sure the stock has appreciated sharply over the last year, but only because the stock got so low because of RR's misdeeds and poor management that the stock finally rebounded to realistic levels. The share price today is equal to what the share price traded at 6 years ago. If you call trying to screw the shareholders for personal gain, running the company into the ground and nearly out of business, and failing to get any share price appreciation in over 6 years doing a "great job" then I would really hate to see what it looks like when a CEO does a bad job. The only reason I continue to own this stock is because I see my interests and RR's aligned, but I do not doubt for a second that RR would not hesitate to screw every shareholder if he gets another chance and feels he can get away with it. In fact, I strongly suspect that RR is now, once again, trying to screw the shareholders by deliberately doing nothing to promote the company to the investment community so that he can try again to take the company away from shareholders. This time, however, I am pretty confident that he will only do so by offering us a reasonable price because last time it all blew up in his face.
Very creative idea, but to be honest in my view none of this is worth the effort. I do not think anything we do as private investors will have more than the slightest positive impact. Even those in the financial industry who write articles about stocks often have little impact. The only way EBIX is going to be promoted in a way which has any material impact will come from the company, analysts, or a credible financial publication.
Yes, EBIX's cash flow metrics, business model, growth prospects, and entire story are under appreciated by the investment community because nobody, and I mean absolutely nobody, is telling EBIX's story. Over the last 3 quarters, the only communication about EBIX has been earnings reports, the announcement of the London PPL, and several bash and positive articles in low grade publications like Seeking Alpha. Hardly a word in mainstream media, and no other contract win announcements or updates from the company whatsoever. It is as if EBIX is doing all that it can to hide and remain under the investment community's radar which is not the way you promote the value of a public company and its story.
It is bizarre, and I do not accept that this is a mere oversight on the part of management. If you remember before the Goldman fiasco when the company was doing well and was trading near 20, EBIX did a lot of regular PR and IR where the company regularly issued press releases, had investment conferences, and RR did a lot to promote the stock, including giving interviews, such as major article in Fortune, other print media, and several television interviews. Then the Goldman fiasco happened, and the company stopped doing any PR or IR. I have to believe that management knows how much PR and IR will help support and increase share price because they have done it before and saw such positive results. As I have posted before, the only explanation that I have is that management does not want the share price to increase so that the company can buyback a lot of shares cheaply and lower the float more rapidly which I think will do little to improve share price without the story being told as evidenced over the last couple of quarters. As such, the only explanation that I have been able to come up with is RR wants to take the company private again, and therefore is doing nothing to increase share price because to do so would make the buyback take longer so as to increase his percentage ownership to his desired level and make him have to pay more for the outstanding shares.
Yes, a 20 PE is very low when compared to its peers. At minimum, EBIX should have a 30 PE which would still be much lower than many of its peers who have far inferior balance sheets, cash flow, and growth rates.
The shorts are just pouring a little gasoline on the forest fire. This no longer about the shorts and now a major economic meltdown of global proportions. The shorts are just taking a little advantage here.
Yes, we sold our soul to the devil (China), and now the devil has taken all the money and squandered it so now we may be left paying a big price. Just the economic displacement alone of China's manufacturing base imploding requiring countless companies from around the word to have to relocate their manufacturing to a new location which will not greatly increase the costs of the good being sold is enough to create a substantial global recession. A card house can only stand so long until the wind blows and the card house caves in destroying everything living inside.
I disagree with your view on this. You cannot merely measure China's impact on our economy by looking at how China directly impacts the U.S. GDP because the indirect impact is much more substantial. You have to also remember that China does a lot of business with other countries in Asia and Europe where many companies in these regions will be severely negatively impacted by the major slow down in China. These companies will as a result do a lot less business with U.S. companies so the impact that China has many more far reach and indirect consequences that merely its direct impact on U.S. GDP. Moreover, as has already occurred and which will grow more pronounced as the troubles in China increase, the value of the U.S. dollar will substantially rise which is going to hurt many U.S. companies because foreign spending all over the world and not just in China will be greatly weakened because those using other currencies will have greatly reduced buying power. China has literally built an economy which is a sham and fraud where, for example, they have a major city full of skyscrapers which is nearly vacant because they encouraged building without any end demand for the new structures. The Chinese government has artificially manipulated its economy in many other ways, and now it appears the gig is up and that China even with its meddling can no longer keep its economy artificially afloat. This will have far reaching and lasting impact for the entire global economy, and especially the U.S. economy. As far as EBIX, EBIX should far fairly well in this downturn because it is not richly valued and generates a lot of cash so as Jedhir stated I think it will benefit during the flight to quality which typically occurs in a bear market. But the China problem is a real big and serious problem that will not go away anytime soon and will likely hurt the U.S. economy substantially for the foreseeable future.
I disagree. Not everything is getting crushed to the same degree as TWTR, especially when you consider how much TWTR had already fallen before the last few days.
I agree, but I also think the single best catalyst for increasing both volume and share price would be to get a major analyst to initiate coverage with a detailed report, buy recommendation, and materially higher price target. This would do so much to increase buying, as well as scare the #$%$ out the shorts because they then would know the gig is up and that they can no longer just make up #$%$ or distort fact to generate fear among longs and take down the share price because the analyst would respond to any attempt to do so. I think if this would happen, the shorts would then decide to move on and cover in earnest because they will realize that their power to manipulate is greatly reduced.
Also, getting EBIX much more noticed through effective PR/IR should result in substantially higher daily volume. With substantially higher daily volume, the shorts will no longer be in such firm control of share price. Once the shorts loose firm control over share price, they will grow very uncomfortable and then likely move on to their next victim. As long as volume remains so thin, the shorts see no reason to move on because they can easily manipulate things with impunity.
Precisely! My concerns about IR/PR are not merely related to short term boost in share price, although that is something that I would like to happen. The lack of PR/IR is the primary reason that this short attack was initiated against EBIX and why it persists and remains a very serious danger for the company. The shorts chose EBIX because it is thinly traded, has no PR, and has very little analyst coverage. This allows the shorts to easily manipulate share price and to do so with lies and deceit which will go unchallenged because nobody is out there to speak on behalf of the company or to challenge the lies other than retail share owners. The shorts won't move on for the very reasons you fear. As long as the shorts remain in control with such thin volume, no PR, and no analyst coverage, they think that they will be able to take share price down substantially again by coming up with some new concern about the company or its financials that nobody will challenge. The reason the market is not convinced that the regulatory problems for EBIX are over is that nobody is saying that they are over. All the company has said and even can say is that they have not heard anything from the regulators for quite a long time. But if we had a significant analyst following, I am very sure that an analyst in a report or article would comment about this, especially in response to recent bash articles contending the regulatory issues are not over, and indicate based on how the regulators operate it is very unlikely that the issues which gave rise to the investigations and lawsuits will resurface. IR and PR is not just about short term promotion of the share price, but it is about making sure that the company image and results are not distorted so that lies can be used to take the share price down to dangerously low levels.
Yes, he did confirm he worked for IR. I called the guy you talk to at the phone number that you gave me, and this guy Joseph is the person who returned my call. During our conversation, he expressly said that he does not personally have much to do with PR because his main focus is IR and began to try to convince me that the company was doing a lot of things I was unaware about in the IR area which I replied that its value is limited if no one even knows it is happening and that it has yielded no results since EBIX continues to have hardly any analyst following and rarely is mentioned in financial publications or television.
Just so you know, I just called Darren Joseph where I made the point that I just made here how just a little PR, even on old news, can do so much to promote and support share price. I hope others call him and do the same. Maybe if we bother him enough he may take steps to actually address the problem.