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Author: Togaparty Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 322  
Subject: Re: EBIX on Bloomberg.com Date: 2/24/2013 1:25 PM
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Sigh ... this is what I find so despicable about what has happened the past week.

As of yet, nothing negative has been proven, but we're already discussing potential analogies to Enron and Madoff. The Gotham 'report' and the Copperfield report are analogous to the infamous 'when did you stop beating your wife' question? The accusation doesn't need to have merit, just sew doubt. So suddenly we hear reasonable people speculating about whether they'll be an SEC investigation because ... well, 'boy these things sound pretty serious. And hey, I have no clue what the tax laws are in Singapore, but this doesn't smell right to me.'

Here's what we do know. We know that some time ago an anonymous group named Copperfield research released a damning report during the quiet period which made EBIX management sound like a cross between Madoff and the Enron management. We know that after it was released a lot of people were mentioning possible comparisons to Enron and Madoff. We know that people were wondering when the SEC would get involved. We know that people were saying 'gee, I don't really understand all this stuff, but boy this doesn't sound good.' And we know, in the end, that the anonymous Copperfield Research report turned out to be a worthless document that was completely discredited.

What else do we know? We know the same thing has happened again. And we're hearing the same doubts, and the same sub plots and reams of discussion subtletly linking Raina with Madoff, and Ebix with Enron.

Listen, I don't know if any of this is true. And in the end, my faith in what the facts tell me may be proven completely wrong.

But here's what I do know: What I do know is that a pattern of anonymous hit jobs released during the quiet period make me suspicious of the intent of this information. And I know that a lot of very smart people, have put a lot of their hard earned money behind this company for a reason: they believe. After all, Copperfield and Gotham have literally handed over the 'smoking guns', ... it's not like the brokerage firms need to 'uncover' anything - they just need to take some time to determine whether the facts presented are damning, or unimportant. They've got reams of people who are paid a lot of money to push the numbers and read the laws and figure these things out. And no one, to the best of our knowledge has bailed. In fact, one brokerage house issued an upgrade Friday.

So that's where I'm left: I can believe the anonymous guys, or I can believe that Ernst and Young and all these brokerage houses with hundreds of millions of dollars of skin in the game, teams of investigators, and I would think access to the books ... I have to believe they are all naive, uneducated in the intricacies of international tax laws, uninterested in learning whether their investment is about to tank ... or their just plain wrong.

I don't think I'm being naive. More important, I don't think they are being naive. Let's see what happens.
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