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Author: CM001 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 319  
Subject: Re: EBIX on Bloomberg.com Date: 2/24/2013 2:21 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,

In the last week I owned shares of 2 companies that were subject to short attacks. One is Linn Energy and the other is EBIX.

In the case of Linn, the company came out with a press release directly addressing the questions raised in the short attack. Almost all analysts (except 1) stood by the company and reaffirmed their ratings, and the company announced their biggest acquisition using stock.

The stock price recovered. One of the blogs where the short case was proposed, has openly acknowledging of closing the shorts. BTW, I do believe the shorts have raised few important questions pertaining to long-term. I have used the bounce back to close 1/2 of my position, since my cost basis is bit lower.

The other stock is EBIX. The EBIX press release is pathetic. The shorts have done some homework and put a detailed case. At the least the company should have answered bit more detailed on the questions raised. They should have put their CEO (I don't think anyone else is allowed to talk in public) on either CNBC or Bloomberg. No they didn't do any of it and issued a statement, worded lawyerly to cover themselves in future.

I knew EBIX is a high risk stock and wasn't holding any high opinion of the management (aka CEO). They haven't done anything to change that. I will soon close my position and probably will not look back until there is a management change.

The management, board of directors are representing the shareholders. If you don't trust them then it doesn't matter how great the prospects are, we should move on. I am not an activist shareholder, or someone who can force management to change. So the only option I have is not to be invested in these circumstances.
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