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Sunil Shah
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A fund manager who cut his cloth in Schroders London. He joined Coronation South Africa in 1998, running the Smaller Companies Fund which had the best 5-yr record in the sector during his tenure. In 2005 he left Coronation to pursue his passion in writing (and invest without constraints). He... More
My blog:
whitemansnumbers.com
My book:
White Man's Numbers: Excerpt Chapter 13
  • Rumour Mongering on EBIX 4 comments
    Sep 30, 2011 12:00 AM | about stocks: EBIX
    I have done more work on this company than any in my 20 year career.
    The rumour mongering is amazing. I cant even begin to identify the who's and why's

    But through their financial releases and annual reports, through serious digging, I conclude EBIX management have refuted

    EVERY yes every rumour about them: tax rates, subs with dodgy profit margins, intellectual property location, auditor confusion, margin expansion, client growth and retention rates...I could go on.

    Believe me I could go on. I have researched these rumours more than any company (invested successfully for 20 years) and they get an unqualified 5 star bill of health.

    disc: a significant part of my equity exposure is here, and despite the recent slide being painful, I am buying on the way down. COS i have never been more confident on a companys prospects, and this all backed by hard digging and research!

    disc: very long ebix
    Stocks: EBIX
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This post has 4 comments:

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  •  
    Hi Sunil

    I'm also following EBIX. Are you still based in SA ?

    Regards
    Albie (SA Investor)
    30 Sep 2011, 05:31 PM Reply Like
  •  
    These guys are real head scratchers. Numbers look great. But I work in the insurance industry and have never seen a tech vendor that on the one hand represents self as so cutting edge--yet has an amazingly small footprint. Speak to colleagues in non-US markets and they've never heard of them....and these are the two OSUS countries cited as centers of the business. US agency management system business they bought has been run into the ground. Trying hard to square this with the PR and analyst rah rahs. Help.
    1 Oct 2011, 12:46 PM Reply Like
  •  
    hi Samuel, they have a number of case studies and testimonials from existing customers- I doubt these would be fabricated. As for being heard of, the industry is incredibly fragmented in life, P&C insurance and the turmoil in the financial services industry has obviously blurred things further. They're also in the background in being just an exchange. However I think things will become clearer as they recently hired a veteran as Vice P for Investor Relations; this should reduce confusion in time, no doubt a job that was hitherto poorly done.

    As for the string of acquisitions, it is a concern. I hope they will under much investor pressure, disclose organic growth rates from hereon....

    hope that helps
    .
    3 Oct 2011, 01:25 AM Reply Like
  •  
    I know of several of the firms that are cited in the case studies. Again very short specifics and very small footprint. While the industry is fragmented--it is remarkably small on the technology side. There are not many secrets.
    3 Oct 2011, 12:12 PM Reply Like
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