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David Collins

 
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  • Craig-Hallum Research Report Provides Counterpoint to Copperfield Claims [View article]
    Thanks for that, Excalibur5. This is the sort of information that's very valuable to investors looking at $EBIX. Any sense of the scale of this market and/or how other companies are addressing this requirement? Would love to get other customer feedback - pro or con.
    May 2 09:17 AM | 1 Like Like |Link to Comment
  • Top 13 Small-Cap Stocks Releasing Earnings Next Week, Backed by Insider Buying [View article]
    With respect to INMD (we are its IR representatives) I should point out that their Q1 results will be reported on May 5th with a call at 10:00 a.m. Eastern (not April 25th as the article suggests?). INMD is the industry leader in fertility care and vein care in the US. Also, the insider data reported above is not accurate - it reflects a number of annual stock comp. grants and does not reflect a few small share sales. Insider stock/option ownership is significant but insider buying has not been significant over the past 6 months and in fact there have been a few modest sales.

    What is relevant is the strength of $INMD's balance sheet/net cash position for funding growth: fertility acquisitions and new vein clinic construction. Accelerated vein clinic start up costs have been/are taxing reported earnings - but provide the platform for accelerated growth in that segment - with new clinics generally hitting breakeven within 9 months of opening.

    These comments are made pursuant to the safe harbor for forward looking statements. I refer you to INMD's forward looking statement language in its SEC filings, news releases, and presentations.

    David Collins
    Jaffoni & Collins
    Apr 22 12:21 PM | Likes Like |Link to Comment
  • Samson Oil: Competitors Paying Top Dollar for Presence in the D-J Basin [View article]
    Thanks for following up, Michael.

    Tell me where ethanol and corn prices are - and you'll have your answer + however REX is able to prudently deploy excess cash and assets - and the word disciplined personifies the team. Share repurchases have been a big factor over the years as the company can buy back stock at a solid discount to book value - which is accretive to book value on a per share basis.

    $REX is a top ethanol producer from an efficiency standpoint and their plants are well designed, well located near corn & transport and they partner with farmers to optimize corn access and price.
    Their Q4 performance shows how well they do relative to others in the industry - and it's not by accident. Management eats its own cooking with insider ownership around 33% of around 9.4mm shares out at year-end FY 2010.

    REX is covered by Singular Research and Olympia Capital Markets
    Apr 13 09:33 PM | Likes Like |Link to Comment
  • Samson Oil: Competitors Paying Top Dollar for Presence in the D-J Basin [View article]
    $REXX is not $REX

    REX American Resources Corporation (NYSE: REX) is a great alternative energy value story focused on ethanol production, with approximately $25 in tangible book value per share comprised of cash, real estate, tax assets and state-of-the-art ethanol production facility investments - yet $REX sells for around $16 per share despite very strong (pre charges) earnings performance in FY '10 ended 1/31/2011.

    BUT it's not the REX to which Mr. Filloon refers, which I believe is Rex Energy (Nasdaq: REXX).

    FYI
    Apr 13 01:35 PM | Likes Like |Link to Comment
  • Craig-Hallum Research Report Provides Counterpoint to Copperfield Claims [View article]
    Recent 1/4ly releases and conf. call transcripts disclose a long list of customers - would love to learn more about your other points - and in particular how these companies compare to EBIX as far as markets, products, size, and customers. Who's doing what, where, when and for how much is an area that would benefit all of our investment decisions.
    Mar 30 08:00 PM | Likes Like |Link to Comment
  • EBIX: Not a Chinese Fraud, But a House of Cards Nonetheless [View instapost]
    $EBIX
    I have known Robin Raina for at least seven years and served as EBIX’s IR counsel for two (2004 – 2006). From that association, as well as from ongoing anecdotal evidence and third party corroboration (some really smart people have been kicking the EBIX tires for years – resulting in some impressive holders who have met the team), I continue to have nothing but confidence in his abilities to execute the EBIX business. Whereas many small-cap CEOs are fixated on their share price and focus their efforts to curry favor with analysts & funds and the media, Robin’s focus has been on execution and letting the “numbers speak for themselves.” He has built his company through acquisitions that have delivered new technology, customers, markets, capabilities and business models – almost all of which he structured and funded without the assistance of bankers.

    What he has achieved at EBIX has been nothing short of amazing and visionary – he has transformed a company that was mired in a money-loosing shrink-wrapped software model into a new markets and businesses including some that have since been deemed SasS, the Cloud, etc. He has always had great vision and large goals which have enabled him to achieve great things for EBIX – he’s done what he said he would do – and has shown his confidence by holding on to the bulk of his stock.

    I am still reading Copperfield’s “Research” but as a career IR professional I can’t help but be wowed by their skillful (and unbridled) use of innuendo, slanted opinion, hyperbole, misinformation, and “glass half empty-ism” to create a tempest where there really is none. They review clearly disclosed metrics, facts and developments as revelations – and layer them to form a mirage of conspiracy like a great summer novel.

    The velocity of their spin is truly impressive – and the masterful manipulation starts with a powerful nod to “Chinese Fraud” and leverages that inappropriate but colorful slur by making it a “Three Part” saga. A normal one-part blog post would likely get little attention but a 3-parter carries much more gravitas – it even suggests substance or true research and camouflages what is no more than good old fashion stock manipulation propaganda. The language is colorful and leads the reader into a reverie of terror: ‘“roll-up” stench,’ “auditor resignations,” “deceptive nature of the CEO,” “Growth Crippled by,” “ADAM Assumptions are Incomprehensible,” etc. – just on page 1!

    I’ve skimmed the report and see nothing new – just a very clear attempt to twist well-known facts into a persuasively argued but intellectually dishonest treatise. And to top it off – Copperfield has NO prior activity on SeekingAlpha and refuses to identify themselves for fear of the “danger of retaliation from company management” – an ironic coup de grâce of their spin campaign.

    Given the barrage of personal and professional affronts –and today’s share price impact – it would be hard for EBIX to not react to this assault – and perhaps EBIX my rebut this report in some way – other than holding their already scheduled analyst day in NYC on April 1st. Fortunately, running a business well is the best revenge, and I can count on Robin to do that for many years to come. He’s had similar people say similar things – but in less colorful ways - over the past few years – but has stuck to his business and the Company performance speaks for itself. This may even give the company an opportunity to repurchase some stock on the cheap!

    Fortunately the stock market is a voting machine in the short term and a weighing machine over the long term. Copperfield gets their day in the sun while us EBIX investors can count on Robin and his team to move the scales for us in a meaningful way. If you know what you own – you can be confident in riding out the storm – but if you don’t – you will likely be swayed by the newest prophet to hit the blogosphere. For me – EBIX’s track record is long and openly disclosed – while Copperfield is new and unknown – I’m going with what I know.
    Mar 24 07:17 PM | 7 Likes Like |Link to Comment
  • Salesforce.com and Ebix: A Value Comparison [View article]
    Clearly market cap, liquidity, business and consumer brand recognition, financial media coverage and sell-side sponsorship are major factors driving the valuation disparity… but all have been improving steadily for EBIX the past few years and there’s no reason for that not to continue - and for the valuation disparity to narrow.

    EBIX’s insurance focus is also a factor that could limit its general investor visibility and perceptions of its growth potential. But the scope of the insurance opportunity, compared to EBIX’s still diminutive scale, offers enormous growth potential. And EBIX's vertical focus also provides operating efficiencies and leverage that support its attractive margins.

    And as for the critique on EBIX's growth being driven by acquisitions - I see little difference in spending capital to buy companies for growth - rather than spending capital - lots of it - to reward salespeople for driving growth. The returns from EBIX's M&A strategy seem impressive, real and recurring.

    The CRM analogy is interesting – but you don’t need to look further than EBIX’s own performance and industry position to gain great confidence in the opportunity the company offers for long-term shareholders.
    Mar 11 05:16 PM | Likes Like |Link to Comment
  • Cinedigm: An Attractive Play on Digital, 3-D Cinema Technology [View article]
    Thanks for the mention of BTN, which reported strong Q3 results today. BTN is a partner but not a competitor of CIDM - as BTN is focused on the sale of digital projection equipment, the sale of specialty (for 3D), large format and conventional cinema screens, and provides installation, maintenance and integration services for digital cinema projection equipment. The two firms actually complement themselves in providing a broad base of solutions to exhibitors. We are IR representatives for BTN.
    Nov 4 05:54 PM | Likes Like |Link to Comment
  • Ballantyne of Omaha: Riding the Digital Theater Wave [View article]
    BTN has been doing well and earlier this week Merriman Curhan initiated on it with a Buy and an $8-9 target.
    Apr 30 02:26 PM | Likes Like |Link to Comment
  • Why don't IR people use Seeking Alpha? [View instapost]
    "Separate but equal" has never faired very well in this country - and you wonder why IR pro's are not using the site as much as they could? Let's start with the limits you place on exposure of their posts - that's a clear sign on how much you value/want my contributions - and it reduces the potential value and therefore the interest in doing it!

    That we are paid to represent our clients... is that really a conflict? I challenge you to highlight any value-added posters on SA who don't have some form of economic incentive or motive to write what they write - even if it's just to build their name, spread their thoughts, drive traffic to their blog or site (or to try to move sentiment in the direction of investments they have made), etc.

    And it is naive to assume the IRO's sole mission is to goose his client stock - investors are far too smart for that. Our goal in IR is to provide data and perspective that helps investors understand what is going on with a company and where it is going. The long term goal is to help forge relationships and credibility that will lead to long term understanding and investment. I regularly distribute negative news, media coverage or other data to investors and analysts because they have a right to know about these things; and the IR/investor relationship is far more than just "good news." Actually IR really earns most of its keep in helping investors understand negative news and making them feel like we are balanced in our communications.

    I think Dominic is correct that the principal reason "for IROs to use Seeking Alpha is to gain exposure to the audience.." And you can call them what you like - "influencers or users or investors or readers..." it's a community of people thinking about investments.

    IROs already have great conduits for getting their news to their existing audience (it's all referenced to the stock symbol and available at most major portals). But what we crave is access to new potential investors/influencers who HAVEN'T heard of our client(s). We also crave 1st amendment protections to express ourselves about investments - both clients and non-clients.

    SeekingAlpha is great site with some very heavy hitting traffic (I found this out when I wrote up a company a few years back). I would like to make it a part of my IR outreach for certain clients - primarily those who are seeking to build awareness - and I have 3 clients who use the transcript service - so don't dismiss us all for not using the service (also had a CEO do a blog interview several years ago) to its potential.

    BUT I have found it difficult and less helpful when I try to post things about clients - things that would add value for investors who are looking at the name. The avenues available have less visibility and are "lower on the page" and less likely to be noticed.

    All I ask for is a reasoned approach to allowing IROs to use the site to spread the word in a credible way. I think you can do better SA - and thank you for opening up this dialogue for comment.
    Apr 15 07:23 PM | 2 Likes Like |Link to Comment
  • Ebix: Fast Growth, Low P/E [View article]
    Frank, Appreciate your constructive comments which revolve around EBIX facts and new data inputs, whereas the critiques are very thin on substance, based principally on opinion or very old and irrelevant news. I'm all ears to real critiques and to discuss real issues - but let's leave the "once a dog, always a dog" silly name calling to the kids on facebook!

    You can't grow from a $12mm to a $125 run rate in ~ 8 years - and enter several exciting new lines of business - if the CEO "strips down the new acquisitions for cash flow and lets them fade away as deteriorated assets. So, there are no synergies and no growth coming out of the acquisitions..." That comment crosses the line of ridiculous and I trust the sage readers see that a mile away.

    Sometimes someone's undocumented "2 cents" are worth even less than that - but this is a free country. Fortunately, dissent creates liquidity and tempers the share price as it continues to appreciate over the long term so that the stock never gets to a place where it's overvalued and you feel compelled to sell!

    If EBIX's growth strategy via acquisition is bad business, I hope they please keep it up - because over the past 7 years it has transformed the business in every way - and loyal, long term shareholders are laughing their way to the bank.
    Mar 10 06:47 PM | Likes Like |Link to Comment
  • Ebix: Fast Growth, Low P/E [View article]
    The numbers look even better than that....

    Q3 '09 revenue was $23.3mm and net income was $9.4mm and did not include any benefit from the acquisitions of EZDATA Corp. and Peak Performance Solutions Inc. which were effective 10/1/09. EBIX later disclosed a "floor" forecast of $26 million in revenue and $7.5 million in income from the two acquisitions over the next 12 months.

    So that would mean - more or less - that we "bolt on" $6.5mm in revenue and $1.8mm in net income beginning Q4 '09 - and from my experience with the CEO, Robin Raina, it's all VERY accretive on an EPS basis as well. That gets my floor forecast of at least $125 top line in 2010 and the bottom line always grows faster than the top-line at EBIX - because otherwise they aren't interested in the opportunity.

    Now I know there's some investor distraction on organic vs. acquisition-driven growth, but consider that this business was doing around $12mm in 2002... and the scope, client base, access to capital and overall potential of the business - including its ability to land even bigger contracts and assignments - has been completely transformed by a series of acquisitions and efficient integrations. And someone's got a problem with that?!!!

    I think there's more to come - a lot more - and Q4 is just the beginning; and my track record on this stock's been pretty good (as I first wrote it up on SA in Sept '06).
    Mar 5 08:01 PM | 3 Likes Like |Link to Comment
  • Buy Gold at or Below Net Asset Value with This Closed-End Fund [View article]
    An attractive way to own gold with substantial leverage is via high-grade Nevada gold play, Klondex Mines Ltd. (TSX: KDX & Other OTC: KLNDF). Klondex has 1.6mm ounces of gold on an indicated basis plus 0.5mm ounces of gold on an inferred basis and they continue to explore. For a modest market cap of Cdn. $40.3 million (Cdn $1.30 per share; 31mm shares out), you are able to control a high grade resource potentially worth over $2 billion. Clearly there are costs, risks and time involved (KDX has applied for permits to extract the first 120,000 ounces and the first permits are expected in the near term) but even given an enormous discount, there still seems to be substantial upside for a patient investor who's willing to hold the stock. Call me crazy, but even the gold price is not that relevant as long as its $600/oz. or better; anything above that is all incremental margin - and two firms made bids for KDX worth over Cdn. $2.00 per share earlier this year.

    I'm the IR representative for Klondex so unbiased, I am not. But I do promise it's worth a closer look at klondexmines.com if you are interested in participating in gold.
    Dec 8 03:12 PM | Likes Like |Link to Comment
  • Why I'm Rebuilding Gold and Silver Stakes [View article]
    An attractive way to own gold with substantial leverage is via high-grade Nevada gold play, Klondex Mines Ltd. (TSX: KDX & Other OTC: KLNDF). Klondex has 1.6mm ounces of gold on an indicated basis plus 0.5mm ounces of gold on an inferred basis and they continue to explore. For a modest market cap of Cdn. $40.3 million (Cdn $1.30 per share; 31mm shares out), you are able to control a high grade resource potentially worth over $2 billion. Clearly there are costs, risks and time involved (KDX has applied for permits to extract the first 120,000 ounces and the first permits are expected in the near term) but even given an enormous discount, there still seems to be substantial upside for a patient investor who's willing to hold the stock. Call me crazy, but even the gold price is not that relevant as long as its $600/oz. or better; anything above that is all incremental margin - and two firms made bids for KDX worth over Cdn. $2.00 per share earlier this year.

    I'm the IR representative for Klondex so unbiased, I am not. But I do promise it's worth a closer look klondexmines.com if you want a gold investment.
    Dec 8 03:09 PM | 1 Like Like |Link to Comment
  • Ebix, Inc.: Likely to Beat Expectations [View article]
    I am guessing the not one but two recent acquisitions (one small, one large) will bolt on at least another $25mm in top-line revenue before any cross-selling or strategic synergies and provide substantial leverage to the bottom-line.
    Ebix seems very adept at streamlining operations and driving margins so I would also expect these businesses can be optimized as they are integrated.

    It would also seem that the company's growing scale will work to its advantage in securing new clients or larger-scale contracts as well as targeting larger possible acquisitions in what still seems a highly fragmented and technologically backward industry.

    Zach's thesis makes perfect sense to me.
    Oct 21 08:46 AM | Likes Like |Link to Comment
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