Ebix Inc (EBIXQ)

[gixxer11]

BREAKING- EBIX Being Investigated for Money Laundering- Plunging 20 Percent (EBIX)

By Tim Parker on August 6, 2013

Shares of Ebix Inc. (NASDAQ: EBIX) just spiked 20 percent lower as news broke that the company is being investigated for money laundering. According to reports, some cross-border transfers are said to be the focus of the review.

We will update this story as more comes available.



Popular Today: Mellanox Spikes Higher on Consortium Announcement

Ebix, Inc. provides software and e-commerce solutions to the insurance industry. The company operates data exchanges, which connect various entities within the insurance markets and enables the participant to carry and process data from one end to another in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualty (P&C) insurance.


EBIX
9.36
-2.43 (-20.61%)

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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Ebix
About Tim Parker
Tim Parker is the owner of ECS, LLC, a company specializing in financial and small business content. His writing has appeared in many of the top financial blogs including Investopedia, Yahoo! Finance, Benzinga, Business Insider, Forbes, and the Intuit Small Business Blog. Find him on Twitter @expositioncreat Breaking Finance News is an ECS Property.
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[gixxer11]

Heads up

[gixxer11]

Big move

[Khalead Nash]

Great stock

[Kapla]

Excellent.. holding till about $15. 50% profit. GL

[TheFinalCD]

$12.14 EBIX

[ECole]

Q4 revenue increased 22.6% from year ago to 54 mill @ their Q4 '12 results call

read here
http://www.earningsimpact.com/Transcript/78218/EBIX/Ebix-Inc---Q4-2012-Earnings-Call

[SmarTrader]

Hey bud can you PM me your e-mail I don't have the ability to get back to ya without posting public.

[Kapla]

Slow and steady wins the race!

[DownWithPumpers]

Good to see this scummy stock getting the #1 attention this morning for talking about buyback rather than coming clean about their financials.

http://www.thestreet.com/story/11964034/1/the-5-dumbest-things-on-wall-street-this-week-june-28.html

[Kapla]

Hmm, let me think... An agreement with Goldman Sachs before the unjustified false short attack claim? Hard to see how GS would offer $20 share as worthless. Bring on the investigation! GL.

[DownWithPumpers]

Yes, lets buyback our worthless shares, that makes absolute sense, lol

The company has been unsuccessfully trying to sell itself for quite a while. Are they doing that because they see rosy times ahead?

Any company can make an announcement about buying back shares. But there's real doubt that they have the money or intent to do so.

[Ecostate]

sold EBIX already, went to Facebook and NBG overnight(yesterday) sold this morning... all cash cause i am going on vacation and will just be bashing SAPX while on VACA

[Kapla]

3 year old news.

[TheFinalCD]

Why Investors Are Shorting Ebix

http://www.fool.com/investing/general/2010/08/20/why-investors-are-shorting-ebix.aspx

[TheFinalCD]

getting attention from many sides! http://beta.fool.com/ticker/ebix/

[Drugdoctor]

Yea, too risky here, either way, imo..

[TheFinalCD]

wow what a "V" formed off $9.54 I wish I had filled up the basket there...

but then again with this Investigation and allegations, its risky no matter how you slice it!

Its not like its just a blog or rumor

Its 4 real====>

Ebix Shares Hit 3-Year Low After Federal Probe Scuttles Buyout
http://blogs.wsj.com/moneybeat/2013/06/20/ebix-shares-hit-3-year-low-after-federal-probe-scuttles-buyout/


Ebix, Goldman affiliate scrap merger deal due to regulatory probe
http://www.reuters.com/article/2013/06/20/us-ebix-offer-idUSBRE95J00920130620?type=companyNews


For Some Reason Goldman Doesn’t Want To Buy Company Accused Of Accounting Fraud
http://dealbreaker.com/2013/06/for-some-reason-goldman-doesnt-want-to-buy-company-accused-of-accounting-fraud/


SEC Probe

Even as the company kept posting increases in revenues and earnings -- driven in part by a series of acquisitions -- Ebix failed in its attempts last year to get the lawsuits dismissed and the SEC began a probe of the company’s accounting practices.

The pressure mounted in February of this year when another short seller, Daniel Yu of Gotham City Research, published his own attack on Ebix’s financial statements, also on Seeking Alpha. In response, Raina held a conference call with an analyst in which he tried to refute some of the Gotham City claims, while avoiding any discussion of the SEC investigation.

A tennis buff and obsessive ping-pong player, Raina served up the Goldman Sachs buyout plan artfully, announcing the $20-per-share offer a week before disclosing to investors that his company was already being probed by the SEC and the Internal Revenue Service, facts that might have sent his company’s share price south had it not been for the Goldman Sachs deal. The IRS probe relates to Ebix’s use of off-shore subsidiaries in low-tax countries, two people familiar with the matter said last month. Ebix has said that it’s cooperating with the IRS, and that it’s regularly reviewed and audited by domestic and foreign tax authorities


Two Subpoenas

SEC investigators, who have issued two subpoenas to Ebix, according to the company’s latest quarterly statement, have also expressed interest in payouts that have been promised if acquired firms reach revenue targets, according to a person who has discussed the issue with the agency.

Investigators are examining the possibility that Raina’s preference for embedding an earnout in the acquisition price could create a ”cookie jar” that the company can later to use to boost income, according to the person, who requested anonymity because the matter is confidential.

For example, when Ebix announced the Peak acquisition in 2009, it set aside $8 million for the purchase, which consisted of a $6.5 million cash payment, and an accrual of $1.5 million from Ebix’s cash reserves to be paid out when Peak hit its revenue targets over a 12-month period.

Microsoft Lawsuit

In 2011, after concluding that Peak failed to achieve those targets -- a determination being contested by Peak in its lawsuit -- Ebix management reversed the $1.5 million accrual, which flowed directly to its bottom line. It didn’t adjust the goodwill associated with the original purchase downward. Thus, Ebix was able to convert $1.5 million from its cash reserve in 2009 into $1.5 million in net income for 2010.

The due diligence team at Goldman Sachs had an opportunity to review the claims made in the Peak lawsuit, as well as in a class-action suit filed two years ago. The Microsoft suit, however, was filed after the announcement of the LBO.

Microsoft claimed Ebix breached its licensing contract and ignored the company’s demand for an audit to determine the extent of overuse, according to the complaint. Ebix said it was using unlicensed copies of the company’s software products while putting off Microsoft’s attempt to conduct an independent audit, according to the filing. Keehner declined to comment on the suit.




reminds me of SNOFF & CCME Muddy Waters & Citron, but this time its Marc Cohodes & Daniel Yu

Marc Cohodes, a short-seller who helped expose accounting frauds at Lernout & Hauspie, Aremisoft and Computer Associates, questioned the quality of Ebix’s earnings and the motivations behind the deal.

“In my experience uncovering and dealing with some of the great software frauds in the past, Ebix could rise to that level,” Cohodes said.

Cohodes said he’d “never seen a company being investigated or sued on so many fronts” while it was a takeover target.

[Drugdoctor]

Or... where there's smoke, there is a fire... I believe that is why the market won't add value to EBIX shares... I think they drift now for awhile... I got my technical scalp trade out of it, bought the RSI of 6 at $9.10 and sold at a little over $10 for 900 dollar profit on 1000 shares... Now I really don't care where it goes, but will be watching in case I think I see another trade.

GLTY

[TheFinalCD]

EBIX the shorts don't believe the Company or the $100M buy back!

[Drugdoctor]

Yea, I'm watch EBIX close for possible re-entry

[TheFinalCD]

there was just 3k bid @ $10.15 p/m

EBix

[Drugdoctor]

I'm out... made a nice scalp trade here... don't want to hold overnight... may jump back in tomorrow... GLTA

[Ecostate]

looking good here !!!

[TheFinalCD]

I JUST ADDED 1K @ $10

lovin the $10 break!!

$10.20 a/h p/m and $11 by eow

[Kapla]

Yup, I'm in. Putting on the back burner with a sell order at $18.50, heh

[TheFinalCD]

EBIX lookin sweet here $10 BREAK!!!!! $11 by 2morrow

[Kapla]

This one making a slow climb back up... trying to be sneaky? heh

[Stockexpertpro]

EBIX Trading under book value profitable cash flow positive strong earnings growth. Company was going to be taken private just last week by Goldman Sachs the BEST on Wall Street they had to do Tons of Homework and DD before EVER Making a buyout offer to take EBIX Private. Stock appears to be bottoming out down here its making higher lows and higher highs should be back over 10$ this week Chart below it got slammed after a probe was announced into the company but anyone can start a probe dont mean its going to turn anything up i view this as a buying opt the company just announced a Share Buyback as well and is currently over 30% sold short so a short squeeze canidate as well I personally think that anyone selling at these prices is nuts and dumber then hell

[ValueGekko]

buying back with what? if you take a look at the financials it seems they don`t have that kind of money. And I doubt any bank will give them a loan for that with the attorney general breathing down their neck..

[novicetrader]

Grabbed some on the dip at end of day today(@9.27).Am I being stupid to get in when others were exiting,lol! I know it's risky,but I still think the whole issue is way overdone.

[TheFinalCD]

wild ride $9.13-$10 now $9.25 eBIX

[Ecostate]

88% held by institutions. Leaves a float of like 4 million TOPS !! And company buying back 100 million worth with 35 million in bank equates to there being no float whatsoever.

[Ecostate]

looks like company buying back today !!! Smart move when its this low.ADDING !!

[trader Du]

Ford Equity Research upgrades EBIX COM INC from HOLD to STRONG BUY.
BY Investars Analyst Actions - private
— 7:27 PM ET 06/22/2013
On June 21, 2013 Ford Equity Research upgraded EBIX COM INC from HOLD to STRONG BUY.

[Kapla]

Surprising with the market tumble today... Considering a small position.

[TheFinalCD]

nice bounce $9.11 to $9.80 looks like consoli~ here

[TheFinalCD]

I have to admit this is a tuff one to figure out

reminds me of other so called great companies in the past that were dirty




SNOFF= http://investorshub.advfn.com/Sino-Forest-Corporation-SNOFF-21261/

CCME= http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89243185



most know or remember HealthSouth


EBIX scares me to go LONG

just being honest...

I will trade it though

[SmarTrader]

I dont trust GS they'll do anything they can for an extra buck

[conix]

Here we go

Next up is Ebix (EBIX), which was one of the most heavily traded and biggest losing stocks at the end of last week. Shares of the Atlanta-based software maker plunged 13.5% on Friday after posting even larger losses on Thursday. That's when Goldman Sachs terminated a plan to buy the company citing a government investigation into claims of internal misconduct. The two-day drop puts Ebix down 42% year-to-date. By the way, the company says there has been no wrongdoing.

[Kapla]

More bounce plays coming?

[TheFinalCD]

EBIX -911- somebody call the cops!

[Kapla]

Yes, lets buyback our worthless shares, that makes absolute sense, lol

The company obviously knows their own financial condition better than anyone. They know that their stock is essentially worthless. Why would they pay real money for it?

All they did was make a non-binding announcement.

The stock market isn't that easy. You just don't look for articles saying a company is a fraud, buy it, and then expect a 50% gain in one week.

[TheFinalCD]

Two MONSTER NEWS Releases which side are "you" on?




Ebix and Affiliate of Goldman Sachs Agree to Terminate Merger Agreement
http://www.reuters.com/article/2013/06/20/us-ebix-offer-idUSBRE95J00920130620?feedType=RSS




Ebix, Inc. Announces $100 Million Stock Repurchase
http://ih.advfn.com/p.php?pid=nmona&article=58118113

[Drugdoctor]

LOL... The company released a PR stating such... I've already bought near the lows... Planning on scalping a few thousand dollars and moving on... Good luck to you if you are short.

[TheFinalCD]

Ebix, Inc. Announces $100 Million Stock Repurchase




Ebix (NASDAQ:EBIX)



Ebix, Inc., (Nasdaq:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced its Board of Directors has approved a $100 million common stock repurchase program. Shares of common stock may be purchased under the program from time to time on the open market and in privately negotiated transactions, subject to customary legal, contractual and regulatory considerations. Ebix intends to complete this new $100 million stock repurchase authorization within the next 24 months. The Company will fund the repurchases through cash on hand and future cash flow from operations. Ebix currently has approximately $35.5 million of cash on hand worldwide. During 2012, the Company generated free cash flow of $65.3 million, excluding the cash used to acquire businesses during the year. The decision to authorize this share repurchase program has been made as part of the Company's continuing evaluation of strategic options to enhance value for shareholders.

The Company believes that recent allegations published in the media and elsewhere are without merit, and that a share repurchase program represents an attractive use of its cash resources. The Board of Directors is confident that the Company is executing on an effective business strategy, which is generating both strong free cash flow and a robust contract pipeline.

With a recurring revenue base of approximately 80%, Ebix works collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. The Company has a strong balance sheet, a world class sales force, market leading products and is focused on continuing to serve its thousands of customers.

About Ebix, Inc.

A leading international supplier of On-Demand software and E-commerce services to the insurance industry, Ebix, Inc., (Nasdaq:EBIX) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry.

With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company's website at www.ebix.com

Forward-Looking Statements

We have made forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this press release, including, without limitation, statements regarding the Company's planned stock repurchase program, recurring revenue base, free cash flow and contract pipeline. The words "believes," "anticipates," "plans," "expects," "intends," "estimates," "seeks," "may" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance and achievements, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Although we presently believe that the plans, expectations and results expressed in or suggested by the forward-looking statements are reasonable, all forward-looking statements are inherently subjective, uncertain and subject to change, as they involve substantial risks and uncertainties beyond our control, including, without limitation, our ability to execute repurchases of our shares on attractive terms, as well as the other risks and uncertainties discussed in our reports and other public filings with the SEC. This list of risks and uncertainties, however, is only a summary of some of the most important factors and is not intended to be exhaustive. New factors emerge from time to time, and it is not possible for us to predict the nature, or assess the potential impact, of each new factor on our business. Given these uncertainties, we caution you not to place undue reliance on these forward-looking statements. We undertake no obligation to update or revise any of our forward-looking statements for events or circumstances that arise after the statement is made, except as otherwise may be required by law. Additional information regarding risk factors that may affect us or these forward-looking statements is included under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and subsequent filings with the SEC.
CONTACT: Investors
Steven Barlow, IR, 678-281-2043 or
[e-mail]
Aaron Tikkoo, IR, 678 -281-2027 or
[e-mail]

Media
Andy Brimmer / Tim Lynch / Andrew Siegel
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

[DownWithPumpers]

Not only are they buying back 25% of the company stock (at $10/sh), but they denied all the allegations in that PR... EBIX strikes back... I think it easily hits 13 to 14 dollars this week.

The company obviously knows their own financial condition better than anyone. They know that their stock is essentially worthless. Why would they pay real money for it?

All they did was make a non-binding announcement.

The stock market isn't that easy. You just don't look for articles saying a company is a fraud, buy it, and then expect a 50% gain in one week.

[Kapla]

EBIX slightly up Premarket.

[TheFinalCD]

Capiche'

[TheFinalCD]

few videos of reason and caution: