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balazs
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I put my money where my mouth is. Investment for myself. Sometime I am short, sometime long. I take no bullshit, and rarely get it. I am unloved by many, as I speak my mind. although I have yet to be proved wrong.
  • Re: Ebix is NOT A FRAUD but a house of cards 5 comments
    Mar 25, 2011 8:16 AM | about stocks: EBIX
    Hello.

    Anyone read the title?

    Let me emphasis:

    Ebix IS NOT A FRAUD, but a house of cards.
    Well, what exactly is a house of cards?

    I will tell you what is its. It is when jittery investors sell their share at 20% discount to market prices. Bermudas:1 Good guys:0
    Although I side with the Bermudas on this one. How can anyone be so stupid?

    Why dont you just read the title of the article?

    it is clearly a clever joke, meant to spoke investors, and the anonyimty means, none of the bermudas track record is tarnished wheny ebix rebounces, or doesnt get delisted, as a fraud should.
     

    For further elebarations, see my post in the above mentioned "article".
    Stay true!
    I CALLED IT FIRST, REMEMBER THAT!

     

    No positions, only 69, mainly with my wife, with the odd extramarital affair.

    Stocks: EBIX
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Comments (5)
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  • sailrmann
    , contributor
    Comments (5) | Send Message
     
    House of Cards: a structure that, while appearing to be strong, can be knocked over with the slightest touch. From an online dictionary: A flimsy structure, arrangement, or situation that is in danger of collapsing or failing.

     

    "a clever joke"?? This was a very serious article regardless of whether it itself has any validity. A 25% drop in stock price is no joke. The author stated they were short on EBIX and have probably made their money.

     

    I will find their full report and perform more extensive due diligence on this company than I did when I purchased them last year. As stated, I am currently long on EBIX.
    25 Mar 2011, 08:55 AM Reply Like
  • balazs
    , contributor
    Comments (339) | Send Message
     
    Author’s reply » dont dillude yourself.
    read the article, and write to me with your real ego here, so we can get back to this, when i have been proven rigth on this one. and i will be. still not saying ebix is not a fraud, i have no way of telling. but the arguement the article makes can be applied to any company, esp. the tax and aquisition part.
    you are even more clever. you write:
    this is a serious article, then you question its validity in the same sentence.

     

    Make yourself clear:
    Is this a serious and truthful article, that leads one to its obvious conclusion: ebix is a fraud. I dare you to write it, based on those facts!
    or is it, as you cleverly put it:

     

    has no validity.

     

    choose sides, dont just grey the lines. I have, because I am a MAN and I stand up to frauds!
    PS: interpreting reports is not due dilligence. may mean that in its commonfolk use, but the term due diligence has legal and business implications. I challange the author to write and state clearly that he has done deu diligence with ebix.
    If you are right he should accept.
    25 Mar 2011, 09:05 AM Reply Like
  • balazs
    , contributor
    Comments (339) | Send Message
     
    Author’s reply » common definition of due diligence (not business or legal)
    1
    : the care that a reasonable person exercises to avoid harm to other persons or their property

     

    EXACTLY. THE AUTHOR WAS IN THE RED SHORTING THIS ONE, SO HE TOOK CARE TO MAKE SURE HIS POSITION WAS NOT DAMAGED IRREVERSIBALY.

     

    It will however most likely have legal consequences.

     

    also:
    : research and analysis of a company or organization done in preparation for a business transaction (as a corporate merger or purchase of securities)

     

    Business transaction being shorting in this case.
    Do you really want me to bring up the legal definition? It is very damning, esp. with the precedents. An article and blabbering of numbers doesnt consitute due diligence by legal definition.
    As mentioned, I dare the author to state his writing is done by due diligence as per us law, and his work is due diligence as defined by law.

     

    REMEMBER FOLKS! I CALLED THIS ONE! If its a fraud it should be delisted!
    25 Mar 2011, 09:19 AM Reply Like
  • balazs
    , contributor
    Comments (339) | Send Message
     
    Author’s reply » here is what due diligence really is. also the reason why the author will NEVER say he has done due diligence and hides behind anonymity:
    "What is due diligence?

     

    Have you been talking about software company acquisitions, and the phrase "due diligence" came up? Are you wondering just what "due diligence" means?

     

    Most legal definitions of due diligence say something like "due diligence is a measure of prudence, activity, or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent person under the particular circumstances; not measured by any absolute standard but depends on the relative facts of the special case." In other words, to a potential acquirer, due diligence means "making sure you get what you think you are paying for."

     

    Practically speaking, for any company acquisition, due diligence would include fully understanding all of the obligations of the company: debts, pending and potential lawsuits, leases, warranties, long-term customer agreements, employment contracts, distribution agreements, compensation arrangements, and so forth. Furthermore, for software company investments and acquisitions, due diligence also includes
    bullet Understanding any ownership issues relative to the software. For example, did the company really develop the software themselves, or if they bought the technology, were the rights conveyed properly? Does a former contract programmer have a potential claim on the technology? Does the software depend on a library for which royalties must be paid, or for which the owner might withdraw the rights? Might the software infringe someone else's patents, perhaps inadvertently? Did all employees execute confidentiality and non-compete agreements? Were copyrights and trademarks registered properly?
    bullet Will there be any special issues in maintaining the software? In integrating the software with the acquirer's existing products?
    bullet Will the software be made obsolete quickly by hardware, software, market or competitive changes?

     

    "Due Diligence" typically takes the form of the acquirer's list of several hundred questions and/or requests for copies of documents that you, as the potential seller, must answer for the seller on or before some date.

     

    For the owner of a software company, due diligence can be a very difficult and painful experience. It's difficult because you are essentially trying to prove a negative, the absence of any problems. The potential acquirer may keep coming back to you with more and move invasive requests, until you are about ready to scream "do you think I'm a crook? I told you we didn't have anything to hide!" Put yourself in the position of someone who is spending millions of dollars for something they can't see and can't touch, and perhaps you will understand a little better. It's painful because it's hard not to be insulted by questions like "Have any of the principals of the company ever been convicted of securities fraud? List all criminal convictions of the principals of the company."

     

    If you are the owner of a software company, the time to start thinking about due diligence is now. Every decision that you make, test it against the question "how will this look when someone comes along asking hard questions?" Every software company is going to have to go through due diligence someday — when you are acquired, seek outside investment, or go public — unless you intend to remain small and family-owner forever.

     

    As a seller, you will also want to do your own due diligence on the acquirer. Do they actually have the funds to complete the transaction? If they are paying you with stock, what is the record of the stock? Is it likely to still be worth anything when your lockup period expires? How are they going to treat your employees? Are your corporate cultures compatible? If there is a large "earn out" component to the deal they are proposing, do they have a track record of successfully marketing products like yours? What is their incentive to do so? Are you sure? What happens if they do not? Will the acquisition stretch them — in terms of capital, management or otherwise — to the point that it will reduce their chances of success? Do they have a reputation for living up to the letter and the spirit of their commitments? How will they treat your customers? Will you be proud to be associated with this company?"
    25 Mar 2011, 09:24 AM Reply Like
  • balazs
    , contributor
    Comments (339) | Send Message
     
    Author’s reply » as you can see, the writer isn due dilgigent anything.
    he has an interest in the price droping.
    due dilligence by legal definition can only be carried out by a 3 rd party that has NO INTEREST! dont belive these bermuda monsters.
    how anyone can claim this trash is due diligence is bizarre and should seek medical help!
    25 Mar 2011, 09:25 AM Reply Like
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