What about Ebix Inc?
by bernigu | February 3, 2015 6:12 pm
Hi folks,
After looking at AWRE in today´s article by stockgumshoe, I stumbled upon Ebix Inc. Seems to me it ia fairly valued, although it´s stock has had a very strong so far this year.
Check it out and let me know what you think.
P.S. here´s an article from seeking alpha regarding this company:
http://seekingalpha.com/article/2849196-the-planets-finally-align-for-ebix[1]
Endnotes:
- http://seekingalpha.com/article/2849196-the-planets-finally-align-for-ebix: http://seekingalpha.com/article/2849196-the-planets-finally-align-for-ebix
Source URL: https://www.stockgumshoe.com/2015/02/microblog-what-about-ebix-inc/
Interesting company, they sell software to the insurance industry and are in a bit of a turnaround — and getting a bit of a short squeeze in the last month or so, after a pretty strong short attack was derailed, in part by a better-than-expected settlement with the IRS, but it looks like there’s still a large short interest in the stock. I haven’t looked at the financials in much detail, but they’ve got a pretty average valuation so from a long-distance perspective the problem is an almost complete lack of growth in earnings or revenue over the last four years. Presumably that’s part of the reason for the short attacks, and why they’re in a turnaround/restructuring stance from what I can tell, but I don’t know why things have been so flat or what the prognosis might be for future earnings growth.
$EBIX is a possible Short Squeeze play. This has been a hated stock for years and has been a short squeezed before. The shorts do not like the CEO and have ganged up on him for years. EBIX has had legal issues for years but seems to work their way out each time without much damage to bottom line. They make money and pay a small div. and grow by acquiring small company’s in a fragmented market. Short interest is 34% of float, 11M shares. http://shortsqueeze.com/?symbol=ebix&submit=Short+Quote%99
The stock price has had a good move up the last few weeks but only a few days of high volume.
When/if the shorts start covering Ebix could have a big move. I am long and have played this stock in short squeeze’s twice before. If it happens you have to get out fast or have a target with sell limit order.
“A leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, Ebix, Inc., (EBIX) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and risk compliance solutions to custom software development for all entities involved in the insurance industry.” Long $EBIX only for Short Squeeze.