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To: Spekulatius who wrote (66711)	2/28/2021 5:36:38 PM
From: Madharry	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78764

I was trying to make it simple for petal re baba. now for the gang here is the puzzle: what do we do with EBIX? cpa firm resigned citing two issues, both of which on the surface seem to be no big deal. the company reported a huge volume increase in indian gift card sales but despite the large revenue growth it contributes almost nothing to the bottom line. so why is that so material that the cpa frm chose to resign. issue no. 2 was $30 million in cash that is held in trust in conjunction with some possible acquisition. the company wants to list it as cash. the cpa firm wants it listed as other current assets. the other issue is that the company waited 5 days after receiving the letter to publicly announce it. On the face of it neither of these issues to me seem big enough to merit a cpa resignation. Someone on a different thread speculated that the cpa firm resigned because of concern that the gift card usage might be linked to some illegal activity that the cpa firm wanted no connection to so they bailed. Perhaps the CPA firm got cold feet because EBIX is planning an ipo including this india gift card unit and they got cold feet fearing they might get sued by investors if the ipo blows up. . What say you petal et al? on the surface looking at the numbers this seems like a cheap stock now by almost any standards, they need to find a new cpa firm willing to take them on and hope that there isnt a lot more fire to this smoke.

To: Spekulatius who wrote (66711)	2/28/2021 5:47:48 PM
From: Rarebird	1 Recommendation Recommended By E_K_S Respond to of 78764

I agree with what you say about BABA. However, there is a lot of political risk associated with BABA. It is hard to figure how hard China will crack down on BABA. Eventually, BABA will snap back and rally hard when the political risk dissipates. I learned from experience in 1997 when I was invested in MO that a stock can continue to decline as long as the political risk is prevalent. I was down well over 20% before I made out like a bandit. And MO survived by only a few votes. I remember watching the Senate hearings back in 1997 as I had over 6 figures invested on the long side. I try to stay away from political hot potatoes - though I agree BABA is dirt cheap based on valuation alone. I suppose what I am saying is that investing/trading has enough risks attached to it, without asking for more. Don't think I haven't thought about taking a long position in BABA. It was cheap at $260. On a cash flow basis, FB and AMZN are cheap too. AMZN represents much less political risk than FB.