Raina is buying at $20 rather than selling. He and his foundation will own 44% of the company after the merger (29% for himself and 15% for his foundation). He may have waived his merger bonus but he gets it back in company ownership. He sees the value of paying shareholders only $20 while getting a bargain for himself at that price.
Ebix has been named one of the top ten small cap growth companies for the last 4 years by Fortune Magazine. Can it continue this year and into the next 5 years? Probably, at least Goldman and Raina are counting on it since the company even grew during the Great Recession. Goldman and Raina will take the company private for 4 or 5 years, pay down some of the new debt, make it bigger and more profitable, and then IPO it at the equivalent of $45 per share or better. Goldman's share will then be worth $935M for the $211.1M that they originally invested. Raina will have $485M and his foundation will have $250M.
If you could get a 15% return on your money in the next 5 years with any other stock, you would be doing very, very well. Ebix is still worth $30 since the latest quarterly results were probably intentional.
Apple: The iPad Faces Unprecedented Competition [View article]
There's alot of speculation on your part about what the future holds for Apple and others. Don't ever count on speculation to become reality; the future will surprise and or disappoint you.
Dell And Ebix - Heads, I Win Now; Tails, I Win Later [View article]
I don't know who the brains behind Ebix's organized shorting is, but it isn't Cooperfield Research or Gotham City Research (aka Dan Yu). Dan Yu is a small time wannabe who even tried to hide his own identity (no delusions of fame or glory here). He has little money and influence. There has to be a kingpin with millions of shares short. Too much effort involved in obtaining borrowed shares, negative writings, and other stock manipulation. The brains has access to a supercomputer and trading program and doesn't want to be known.
Dell And Ebix - Heads, I Win Now; Tails, I Win Later [View article]
Wrong about Gotham City being anonymous. It is Daniel Yu. Although Dan Yu hasn't admitted to it, Greg Farrell from Bloomberg has confirmed it in his last article that helped trash the stock price from the premium pricing to the buyout offer to $19.50. Greg Farrell has been working directly with Dan Yu for his trash articles that "confirm" IRS and SEC investigations by more anonymous sources. Greg Farrell knew who Gotham City was for some time now (Dan Yu contacted Bloomberg early on) and wrote previous articles about Ebix based upon contact with Dan Yu.
Dan Yu was first identified as Gotham City early on because he consulted a professor on accounting practices. He must not have understood the professor's response or didn't care because he proceeded to write his "analysis" based upon his short-side position (or someone elses position). His "analysis" should be considered fiction since no facts back it up. As you state, even accountants have written rebuttals to his "analysis". Personally, I believe that Copperfield Research and Gotham City Research have the same ties.
Mr. Yu, if you are so knowledgeable about accounting, then why did you have to ask Edward Ketz, a Penn State University accounting professor cited in your supposed report, about the practice of booking deferred revenue as accounts receivable? If you had to ask about such a matter, why would anyone believe that you are knowledgeable about any other accounting procedure, especially those involving complicated international filings?
By the way, that's a good A. Lincoln quote with which to start your article; you never fooled me with your accounting skills. I have too little of a background in accounting, but you seem to have none. Here's an A. Lincoln quote for you: "Better to remain silent and be thought a fool than to speak out and remove all doubt." Here's another one: "He can compress the most words into the smallest ideas better than any man I ever met." And yet another one: "When you have got an elephant by the hind leg, and he is trying to run away, its best to let him run." You should heed the last one and close down your position; you may need the money in the future.
Daniel, you aren't even roughly right; you are in fact precisely wrong so I didn't even bother to read this continued distortion of facts in your short and distort campaign. You have no credibility and I can't understand why Seeking Alpha continues to publish this crap. The LLC designation of Gotham City will not limit your legal obilgations in the future. Your own writings on LongShortTrader show your intent to do damage to any company that you short. It is not opinion when intent is to damage a company's reputation with the hope to curtail revenue growth and investment in the stock by your writings.
Predicting a share price of $1500 wasn't hot air at all, it could have gone that high. However, doomsday price predictions ARE hot air being blown out of the other end. Future earnings predictions are now based upon what, no innovative of products by 2016? I wouldn't count on that. Steve Jobs may have been one of the best ringmaster marketers since Barnum and Bailey, but he wasn't the inventor for all of Apple's patents. Patents are continuing at a rapid pace and products will follow.
All Apple's innovation didn't come from Steve Jobs. There's plenty of talent in the organization. Jobs greatest contribution was his marketing skills. Apple holds plenty of patents, some after Jobs died. Others who want to use the technology will have to pay Apple or be sued.
The Truth About Robin Raina's Ebix: Part I [View article]
This short loves exageration. The Bloomberg article about the SEC accounting investigation had 4 insiders as informates. They just walked to the writters front door and spilled their guts. I question the Bloomberg writter's integrety.
The Truth About Robin Raina's Ebix: Part I [View article]
The SEC never issues a clean bill of health to anyone nor discuss anything that it does not make in a public statement. The SEC is very secretive and does not formally end any of its investigations unless formal charges are made. When shorts make statements involving the SEC, they know the SEC will not come back with a statement. The supposed SEC investigation article was written in November 2012 over 3 and a half months ago. It stated that the SEC has been investigating EBIX accounting for over a year. With what? They don't have their books nor any contact with their executives. The article was as bogus as this "research".
How Much Is Ebix Really Worth? [View article]
Ebix has been named one of the top ten small cap growth companies for the last 4 years by Fortune Magazine. Can it continue this year and into the next 5 years? Probably, at least Goldman and Raina are counting on it since the company even grew during the Great Recession. Goldman and Raina will take the company private for 4 or 5 years, pay down some of the new debt, make it bigger and more profitable, and then IPO it at the equivalent of $45 per share or better. Goldman's share will then be worth $935M for the $211.1M that they originally invested. Raina will have $485M and his foundation will have $250M.
How Much Is Ebix Really Worth? [View article]
Apple: The iPad Faces Unprecedented Competition [View article]
Dell And Ebix - Heads, I Win Now; Tails, I Win Later [View article]
Dell And Ebix - Heads, I Win Now; Tails, I Win Later [View article]
Dan Yu was first identified as Gotham City early on because he consulted a professor on accounting practices. He must not have understood the professor's response or didn't care because he proceeded to write his "analysis" based upon his short-side position (or someone elses position). His "analysis" should be considered fiction since no facts back it up. As you state, even accountants have written rebuttals to his "analysis". Personally, I believe that Copperfield Research and Gotham City Research have the same ties.
Ebix: All Distraction, No Clarity [View article]
Ebix: All Distraction, No Clarity [View article]
Ebix: All Distraction, No Clarity [View article]
Apple At Year End: $600 [View article]
How Apple Almost Pulled It Off [View article]
How Apple Almost Pulled It Off [View article]
How Apple Almost Pulled It Off [View article]
The Truth About Robin Raina's Ebix: Part I [View article]
The Truth About Robin Raina's Ebix: Part I [View article]
The Truth About Robin Raina's Ebix: Part I [View article]