Ebix falls as Gotham City Research takes aim again

The SA contributor, which has harshly criticized Ebix's (EBIX -4%) accounting more than once  in the past, now says it has "discovered material and growing holes in Ebix Singapore's Balance Sheets and Statements of Cash Flows".

Among other things, Gotham asserts there's a $27M "unexplained irregularity" in the unit's 2011 related party loan liability, $44M worth of cash flow irregularities from 2009-2011, and a $64M gain from a "sham transaction" involving two Ebix subsidiaries.

Gotham also says it has uncovered major accounting issues at Ebix's Swedish unit. It believes Ebix's Swedish earnings "are less than 1% of the $6.3 million and $7.0 million pre-tax earnings claimed in Ebix's 2011 & 2012 10K filings," and points out the unit was recently liquidated due to a failure to make timely filings.

The author suspects auditor Cherry Bekaert failed to do its job, and believes Ebix "meets the requirements for a default on its credit facilities and loans."

Ebix is being investigated by the SEC and a U.S. Attorney office, and reportedly the FBI.

Comments (3)
  • bluedevilAK
    , contributor
    Comments (41) | Send Message
    interesting these market currents are never updated or amended to reflect what actually happened - which was that EBIX finished the day up 1%
    20 Sep 2013, 09:58 AM Reply Like
  • midlifeshift
    , contributor
    Comments (3) | Send Message
    Gotham City Research is a Wordpress blog site. The owner of the site has been hidden so the entity behind this tiny site is unknown. This implies that this entity has a material interest in EBIX, likely an interest in the stock's price decreasing. Perhaps a short or group of shorts. Therefore the research may be suspect. In any case, this entity does not want it's identity known.
    16 Feb 2014, 01:35 PM Reply Like
  • midlifeshift
    , contributor
    Comments (3) | Send Message
    Gotham City Research is a Wordpress blog site and it's domain owner is hidden implying that some entity is basically scared to show itself. This likely means that it is trying to discredit EBIX perhaps to drive the price down. This also possibly means that this entity has some interest in EBIX. It doesn't say much for the entity if it is scared of showing itself.
    16 Feb 2014, 01:36 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs