Disclosure: I am very long EBIX
This may be the most undervalued company that I have every had the opportunity to purchase. The reason they are so undervalued is the fact that they are in some legal issues because of short attacks from both Bloomberg and an author on Seeking Alpha called Gotham.
Fact is if this was a larger company and there was not legal issues plaguing them there would be hundreds of investors lined up to take a huge chunk of the business.
Everyone likes to quote Buffett, well EBIX has what Mr. Buffett likes to call a MOAT. They are the only company in the insurance exchange that offers end to end service. This is a huge advantage as it gives the company a very sticky feel. There customer retentions is second to none.
Now, I purchased EBIX at around 9.40/share a number of months ago. I feel like right now they are still very well valued and I would think that you would make a lot of money buying now. However EBIX has huge spikes and valleys in share price. So if you put an order in around 12$ I do believe it would get filled over then next few weeks.
The legal issues are starting to become a bit of a backdrop or background noise if you will. They have been a bit more muted lately and it looks like short sellers are starting to back down a bit. This does not mean that there will be no 'noise' in the future.
Fundamentally this company is as good as they get. I would like to see them buying back a number of shares right now, but they are paying down debt instead. This is a company choice but is not the one I would make.
The CEO Raina has come under fire as of late from the online investors. But he has done a great job in my opinion and in all honesty I feel that the only reason he has done so is because of the short attack and his attempt to take the company private in the spring. Many thought he was low balling the share holders.
On a company and fundamental standpoint I feel he is a good CEO who stands tall for the company and is accountable for it actions.
EBIX is a screaming buy for me.
Disclosure: I am long EBIX.