EBIX
It was quite a while ago that I brought EBIX to this Board.
At that stage it was trading at a post-split price of about $9 and it’s now about 88% up at $16.95c.
I believed its Financial Fundamentals showed quality and their ability to make good profits and provide shareholder value.
From what we’ve seen in their published Financials it doesn’t seem that the nature of those Fundamentals have, in any great way, changed such that one could expect the recent decline (up to about 6 or 7 days ago) of their price.
Of course, as The Ox has pointed out, there has been an exceptional amount of shorting of the stock. And here I would think that if someone is going to short a stock then that would usually be based on the fact that they believe the stock’s price will decline. And if the stock’s price is to decline then, logically speaking, it should be based on some aspect of a company’s Fundamentals that will lead to that event.
I don’t know about you, but I’ve seen very little, if anything, in that regard.
Yes, if one shorted EBIX after the end of Nov.’09 one could have scored. Maybe there were those who, at the time, saw EBIX as overpriced. I suppose it also depends on the time horizons of investors.
But if one is still in a shorting “contract” then it could be, financially, very uncomfortable.
Well …. in the last few days we’ve seen EBIX’s price moving up. In fact it’s up, on increasing volume, by about 17% in the last 5 trading days.
And for those with an eye on T.A. aspects, the stock’s price …
1) gapped up on Friday
2) closed higher than it opened
3) performed on an increased volume which was also its highest since mid-Dec.’09.
BUT, at the end of the day, much will, and should, depend on what their Financial Results show us on Monday the 8th. March ’10.
I know of at least two S.I. members who’ve recently invested in EBIX.
For them, and me, Monday should be an interesting day ….. |
