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Strategies & Market Trends : Value Investing

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To: Shane M who wrote (42592)	5/11/2011 12:41:24 AM
From: Jurgis Bekepuris	Read Replies (1) of 78462

EBIX - I don't hold a position anymore, but I wouldn't be so positive. Revenue is increasing at about 22%, while earnings are flat if you annualize Q1 vs 2010. Their S&M and G&A are going up - both mentioned as low in the short report. There's 1.5M currency exchange gain, which is not something to expect every quarter. Income taxes are rising - another point of the short report. ROE dropped to 18%. OCF is still 50% lower than earnings! It's still a marginal buy if you expect that their results will continue in a similar vein. It's not a buy if the short predictions will come to roost. So far they have been somewhat correct. ;) Personally, I would look for $15'ish to reenter the position. Otherwise, IMHO the risk is too high.

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