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[SMART MONEY] taking advantage of volatility
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.
I KNEW news came! Ha! I was literally watching the 1 min chart when it jumped 5% instantly. I didn't check for news, gut said big money here so I bought right in. Put the orde in .10 above the ask.. Happy to hear news actually came out..
Something fishy here though thats for sure. Might be a good fishy though lol
I have no shares. Bought and sold yesterday. The more I read on this company (because of the timing of all this) I am wondering if it may be the shorts stirring up the mud to avoid bankruptcy them selves. If the Goldman acquisition had gone through, they would have been forced to cover. I also will be watching this one closely.
Ebix approves $100M stock repurchase
http://www.cnbc.com/id/100835510
Ya, now seriously considering picking up some shares for long term see what happens.
I'm surprised the company hasn't come put with PR Explaining the investigation talk..
The 100 million share buy back is kinda a bug FU to the ones that slam the company though..
Watching closely Monday PM
1st.ihub.post.nice.rumor..lol..u the seeking alpha hit piece author? Lol
Heard rumors of a whistleblower working with Department of Justice,but don't know if it's true. Can't seem to find anything concrete. I dumped this just in case. Scary stuff if they are cooling the books.
Heard rumors of a whistleblower working with Department of Justice,but don't know if it's true. Can't seem to find anything concrete.
Great entry. This is an interesting issue. Imagine if the lawsuit is Bullsh*t, it could sore again. To risky to really hold this one, keeping a close eye as well.
Could get interesting - is the investigation bs ?
Monday should be heavy volume - on watch missed the news earlier no position yet
Got back in at 8.68 we'll see if she holds.. BIG covering in my opinion
Had a bad feeling this was coming
Yep, 11.22 to 11.99(1/2) then the other half before the handle broke this morning at 10.95.. Still 3 points! (I think)
Surprised she keeps falling its so oversold lol but fundamentals don't apply to charts sometimes
Did you take profit from this yesterday? She's probably going to $8 soon.
Interactive brokers has tons of shares
ya, got out at $10.90 this morning. How did you find shares to short?
covered 9.63
Hrm..,. more support than I thought this SA article is going to hurt:
http://seekingalpha.com/article/1514502-ebix-worth-no-more-than-8-likely-headed-to-0?source=kizur
No problem hate to see people lose profits
Yes, I heard about that and went ahead and sold the rest. Thanks for the heads up though.
I'm going with the fundamentals, but if company is messing with their numbers... well then...
Meh, I don't by it... shorts falsely accusing the company to get the share price down, but I guess we'll see.
Wow this thing is oversold but going down still?? lol I dont understand these markets anymore... smh in shame
Heads up - cnbc talking about Goldman saying this is going much lower - just passing info along
Glta
I will hold a portion long term. That is my mode of operation. What I have at the moment is my long term for now. If I make more $ tomorrow, I will hold a portion of that also.
I may just hold this long term... company was attacked and once they get through the investigation it'll be a $20 stock again. Thanks.
I think what we have now is profit taking from earlier in the day. I took mine earlier. I put in an a sell order immediately after purchase for 50%. If it drifts back down enough I will buy back what I sold and make some more money tomorrow.
Goldman Sachs Group Inc. (GS) terminated an agreement to acquire Ebix Inc. (EBIX) after the insurance software maker said it was told that federal prosecutors had opened an investigation. Ebix shares plunged the most in three years.
The U.S. Attorney in Atlanta wrote in a letter that it was probing allegations of intentional misconduct, Ebix said yesterday in a statement. The company previously disclosed that it faced shareholder class-action lawsuits and a U.S. Securities and Exchange Commission probe over the accuracy of its public statements to investors.
“The allegations in the class-action suits are without merit,” Ebix Chief Executive Officer Robin Raina said in the statement. “We want to thank Goldman Sachs for their interest in acquiring Ebix and we are naturally disappointed that we could not complete a transaction at this time.”
Ebix has been the target of anonymous short sellers citing accounting and other irregularities. In February, the company had its biggest one-day drop in almost 11 years in Nasdaq Stock Market trading following a report claiming it hid a $65.8 million related-party loan to its Singapore subsidiary from U.S. regulators.
Goldman Sachs, which had valued the purchase at $820 million, agreed to pay $20 a share for Atlanta-based Ebix.
Shares Plunge
Ebix fell 40 percent to $11.90 at 11:02 a.m. in New York. The shares plunged as much as 50 percent earlier in the session, their biggest intraday drop since May 2010, according to data compiled by Bloomberg.
“Due to this recent development, we are unable to move forward with the proposed transaction,” Andrea Raphael, a spokeswoman for New York-based Goldman Sachs, said in an e-mailed statement.
Ebix said it will comply with regulators and continue to evaluate strategic options for the company. Neither company will pay a termination fee, according to the statement.
The firm is “committed to fully cooperate with all the regulatory authorities as they conduct their investigations,” Pavan Bhalla, chairman of the board’s special committee, said in the statement.
Robert Page, a spokesman for the U.S. Attorney’s office in Atlanta, didn’t immediately respond to a call after regular business hours seeking comment on the investigation.
Goldman Sachs affiliate Exchange Parent Corp. was set to acquire Ebix, according to a May 1 regulatory filing. The bank was pursuing the deal mainly with its own capital rather than through private-equity funds, a person briefed on the matter said then.
To contact the reporters on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net; Greg Farrell in New York at gregfarrell@bloomberg.net
To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; Christine Harper at charper@bloomberg.net; Michael Hytha at mhytha@bloomberg.net
http://www.bloomberg.com/news/2013-06-19/goldman-terminates-ebix-deal-after-u-s-prosecutors-open-probe.html
We need to get above that $12.45ish resistance and then can maybe pop above $13 plus?... with $14.53 resistance next...
Volume starting to dry up, but premarket was way to crazy to not recover half that crap. GL
(ajmo)
You welcome buddy, hopefully she will continue to gain some traction after the selloff. Bookmark the board 'BOUNCE' Can get some interesting alerts from there.
Anyone have a price target for todays close? Do you think it could hit $15.00 today or have we already seen the top?
THanks for the heads up bro, I really needed that my portfolio has been getting hit the past few weeks.. where do I send the champagne?? lol.. got in at 11.30 or so. Thank you for taking the time to alert me
Like Warren Buffet (I think) said. Buy when others are selling, and sell when others are buying.
Nice, thanks!
I figure I will go for 2.50 profit on 50% and hold the other 50% long term.
In @ 9.90, ruunnnnnnn!
That is good for me. Gave me a chance to take a position. EBIX under 10.00. UN-Believeable.
Wow pm down huge - $EBIX
there might be a nice price bump, there's a shareholder lawsuit looking for a higher price: we should all sign up and put pressure on the courts
ATTENTION SHAREHOLDERS: The Sale of Ebix, Inc (EBIX) Under Investigation by The Young Law Firm
Phoenixville PA — The Young Law Firm is investigating potential claims against the Board of Directors of Ebix, Inc (“Ebix” or the “Company”) (NasdaqGS : EBIX) concerning the proposed buyout of the Company by an affiliate of Goldman, Sachs & Co. The investigation concerns whether Ebix’s Board of Directors obtained fair value for the sale of the Company and whether the Board has fulfilled its fiduciary duties to Ebix’s shareholders in connection with the sale.
Under the terms of the proposed transaction, shareholders will receive $20.00 per share in cash. The transaction has a total approximate value of $820 million.
Shareholders have rights. If you own shares of Ebix and would like to learn more about these matters, please contact:
Henry Young Esq.
The Young Law Firm
Toll Free: (888) 452-7252
Email: contact@theyounglf.com
or visit: www.mergersbuyoutsandfraud.com/ebix-merger-buyout-shareholder-lawsuit/
The Young Law Firm is a national shareholder litigation firm located outside of Philadelphia, Pa. We protect individual and institutional investors in state and federal courts nationwide. For more information about the firm and class action cases in general, please visit our website: www.theyounglf.com.
not a bad, it was a nice run.
it could have been better.
take care guys
gl
Ebix enters into merger agreement to be acquired by an affiliate of Goldman Sachs (GS) for $20 per share in cash (EBIX) 19.50 +0.89 : Co announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Goldman, Sachs & Co. (GS) in a transaction valued at approximately $820 million, including the assumption of any outstanding debt. Under the terms of the agreement, Ebix shareholders will receive $20.00 per share in cash. This represents a premium of approximately 18% over Ebix's average daily closing price over the preceding 30 days. The merger agreement contains a "go-shop" provision under which Ebix may solicit alternative proposals from third parties during the next 45 calendar days on customary terms and conditions for transactions of this nature. Ebix's special committee, with the assistance of its advisors, will actively solicit acquisition proposals during this period.
Made some good money from the bounce from the lower BB .. got in at 13.25
Ebix Purchases Two New Buildings in India, to Build an Office Campus Over 4000 Square Meters
Ebix Takes Strategic Position in London With the Acquisition of Reinsurance Trading Hub - TriSystems
slowly, controlling the niche market.
gl
Time for accumulation?
Is it time to sell Ebix (Nasdaq: EBIX ) ? You won't find many reasons to do so from the insurance software-as-a-service provider's quarterly results. Revenue increased 13% year over year to $47.7 million. Earnings grew 14% to $18.1 million after excluding one-time non-recurring gains in the second quarter of 2011. The stock has soared 35% since the beginning of June.
However, re-evaluating a highflier like Ebix every now and then makes sense for investors. The stock might be nearing its top after a great run. Then again, Ebix could be poised to continue its winning ways. Which view is on target? Let's look at both sides.
Sell side
Some might say to sell simply because the stock has risen so quickly. However, Foolish investors examine the company's underlying business rather than just stock prices to determine the best course of action.
Probably the main business concern for Ebix is how well the company will be able to integrate its recent acquisitions. Ebix bought PlanetSoft and Fintechnix in June. PlanetSoft focuses on streamlining processes such as underwriting for life and property and casualty insurance companies. Fintechnix is an information technology company that provides products to improve front- and back-end operations for Australian financial services companies.
Due in large part to acquisitions like these, Ebix carries an extraordinarily high amount of goodwill and intangibles on its balance sheet. Fellow Fool Rex Moore recently pointed out the potential dangers with Ebix maintaining a high ratio of intangible assets to total assets. Since that article was published, the intangible assets ratio for Ebix has increased to 82%. The risk for investors is that if the company ever writes off large amounts of these intangible assets, shares could plummet.
Ebix also faces competition in several areas. Since the company receives around 80% of its revenue from its exchanges, rivals in the exchange markets present the greatest challenge. Privately held Aplifi (formerly known as Blue Frog) is a primary competitor in the life insurance and annuity exchange markets. IVANS is the Ebix's main rival in the U.S. property and casualty exchange market.
Earlier this year, Aplifi announced that Genworth Financial (NYSE: GNW ) will use its life insurance electronic application platform. This is a shot across the bow for Ebix, since it also partners with Genworth in several areas.
Buy side
On a positive note, the rest of the company's financials are solid. Solid revenue and earnings growth? Strong cash flow? High profit margin? Low debt? Check them all off the list.
Perhaps the best reason to buy Ebix is its customer relationships. Major insurance companies such as Manulife Financial (NYSE: MFC ) , Prudential (NYSE: PRU ) , and many others partner with Ebix to help streamline insurance processing for agents, brokers, and customers.
These customers tend to stay with Ebix. The company claims a 99.5% customer retention rate. Since Ebix generates around 80% of revenue from recurring subscriptions, this high customer retention results in predictable cash flow.
Growth opportunities exist in the U.S. and internationally. Ebix estimates that 89% of life insurance applications and 78% of annuity applications in the U.S. are still processed via paper rather than electronically. The world insurance market is significantly larger than the U.S. market, yet Ebix only receives 30% of revenue from international customers.
Second-quarter results reflected only one month of revenue from newly acquired PlanetSoft and Fintechnix. These additions should boost revenue going forward. Ebix CEO Robin Raina says that the company expects to make a few more accretive acquisitions this year with a focus on growing exchange business across the world. These could present positive catalysts for the stock.
Taking sides
In my view, Ebix should continue its upward momentum. The high intangibles ratio is somewhat concerning, but the company's other strengths are compelling.
The stock appears to be valued attractively at current levels. The forward P/E of 13.52 seems cheap considering the consensus analyst estimates of 20% annual growth over the coming years.
It wouldn't be surprising if some big players might eye Ebix as a potential acquisition target. Computer Sciences Corporation (NYSE: CSC ) is one that comes to mind. The large IT firm already competes in the property and casualty market. It also has more than $1 billion in cash and short-term investments, more than the current market cap of Ebix.
Sure, Ebix has shot up a lot in a short time. Investors probably couldn't be blamed for taking some profits off the table. If you're patient, though, this stock looks like it has more room to run.
Ebix is one of several technology companies to excel in a niche market. Learn about another great company that fits this bill in The Motley Fool's special report "The Only Stock You Need to Profit from the NEW Technology Revolution." Get your free copy now!
http://www.fool.com/investing/general/2012/08/08/is-it-time-to-sell-ebix.aspx
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