This article is a short but important extension to the tortuous tale of Ebix (EBIX) and its auditors. The details of the abrupt resignation of RSM Auditors along with their strong insinuation of impropriety have been covered in my previous
Ebix: The Path To Prosperity Is Paved With Signposts
Summary
- The abrupt resignation of the previous auditor RSM in February, along with their strong insinuations of impropriety resulted in a steep slide in Ebix's share price.
- This article identifies two significant signposts that reinforce the view audited results will not include a material misstatement as feared by the market, post RSM.
- 4Q results and audited 2020 financial statements will be published next week and the deeply depressed share price is likely to respond. Fast.
- The surge of unicorns created in India this year lends credence to the view the EbixCash IPO will be highly successful.
- Last call for the clearance sale on Ebix, the digital e-train to Mumbai. Hop on board.
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 recently completed his first novel, a financial thriller called "White Man's Numbers" see www.whitemansnumbers.com - highly acclaimed rollercoaster! See excerpt and reviews on website link.
Analyst’s Disclosure:I am/we are long EBIX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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