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'Ebix Inc. has acquired London-based TriSystems Ltd., an online insurance trading hub facilitating commercial insurance and reinsurance transactions between London intermediaries and insurance companies. The TriSystems products and Services would now become a part of the EbixExchange Division of Ebix Europe.

Further, Ebix expects the merger to be immediately accretive to its earnings per share. The company said the transaction was funded completely in cash, and no Ebix shares were issued and no investment bankers were involved.

The TriSystems On-Demand SaaS platform communicates electronic endorsements and placements with underwriters using ACORD messaging over the Lloyd's Exchange together with Accounting and Settlement or A&S and Electronic Claims File or ECF via. the Insurance Market Repository.'
http://www.rttnews.com/1948462/ebix-buys-london-based-trisys...
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MDP Home Fool
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Ok, I drank the kool-aid, I own the stock, immediately accretive and no more shares issued and no blood-sucking middle men. That's all great, but I'm starting to feel DRIV-ish just the same...

Please, what does the following mean in English?

The TriSystems On-Demand SaaS platform communicates electronic endorsements and placements with underwriters using ACORD messaging over the Lloyd's Exchange together with Accounting and Settlement or A&S and Electronic Claims File or ECF via. the Insurance Market Repository.'

Does anybody know?
Thanks!
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On-demand SaaS: 'Software as a Service' hosted by the vendor, paid for by the user per usage, as opposed to the traditional model of buying/licensing a copy per user


"The Insurers' Market Repository (IMR) is a key piece of infrastructure for the London Insurance Market. It supports the electronic processing of premiums, policies and claims through the Accounting and Settlement (A&S) and Electronic Claim File (ECF) solutions. The IMR enables its users to create, maintain and submit premium, policy and claims documentation direct to Xchanging and share documents with their trading partners, eliminating paper and increasing processing speeds."
https://repository.xchanging.com/worksitemp/index.jsp
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MDP Home Fool
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Thanks TMFCog!
Here's what I'm worried about. Never mind, you know what I'm worried about.

While there is absolutely no reason to think that the rumors are correct, there isn't really any reason to think that they aren't. Companies that grow, particularly through constant acquisition can most easily hide aggressive accounting or general sloppiness of any sort. Over on the RB board, early on, looking into EBIX, Raina does not have any kind of strong background in what he's doing...his origins are pretty humble. That isn't to say that a guy isn't a natural or can't learn, but I've had way too much experience with this sort of company.

I sold my shares at a (relatively) small loss just yesterday. I was thinking I might as well wait a day, since a really good earnings report might get us at least a little pop. I resisted my urge to be loss-averse and got out. The earnings report is really good, stock hammered. It looks from the chart like we'll revisit $15.50, but boy, I'd really like to see another shoe drop...good or bad. If the bad shoe drops, boom, it's dead. Good shoe (which could only be somebody from the SEC saying they don't know anything about it) and up it'll go. I'll have plenty of time to get back on the train if it is indeed a long-term growth story. But if no shoe drops, the shares will fall below 15.50 and nobody can guess where they will stop.

Somebody needs to do some clarifyin'.

-Randy
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Randy: 'Raina does not have any kind of strong background in what he's doing...his origins are pretty humble.'

Considering this *pretty humble* bloke was the one who salvaged Ebix from the junkheap over 10 years back, I'll take him any day over supposedly un-humble empty suits.

One of the most entertaining things about investing in Ebix is that most of those not-so-humble analysts are too busy obsessing over irrelevant minutiae like his accent/ origins. If the same criteria were applied to either them or some of the CXOs they worship, I wonder how they'd fare.

'Companies that grow, particularly through constant acquisition can most easily hide aggressive accounting or general sloppiness of any sort.'

Yes, it's a serial acquirer, and a lot of its recent growth has been acquisition-driven. If that makes it a 'fraud', then so are other serial acquirers like Oracle, J&J, Diageo...

As Raina has repeatedly and painstakingly explained to those who actually listen, the highly fragmented insurance industry's business processes are a dog's breakfast of inefficient paperwork, lack of standardization and hodge podge legacy systems. By acquiring and integrating all the bit players contributing to this mess, Ebix brings its customers into the 21st century of B2B transaction processing.

I think it's a complete waste of time casting aspersions on an aggressive acquisition strategy without understanding the customer need driving it.
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MDP Home Fool
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Thanks for that reply, Cog.

I think I'm not clear on my "humble origins" point; I don't mean where he comes from, I mean his business experience. He has training as an engineer. What sort of training is that for managing the intricacies of accumulating and integrating the people and financials of different companies in a business that he has no background in? It's not like he was a frustrated insurance underwriter constantly struggling with his available tools. He's obviously an opportunist, which I find totally acceptable and endearing. This is the best reason to buy EBIX.

Ultimately, the success of EBIX hinges upon it's management, which is always true in the long run, but especially true of consolidators. What I can't discern is just how deeply MF can "look into the eyes" of company managers. There has been at least one (face to face?) discussion between MF and Raina, which I find comforting. It's part of the reason I bought in (twice) in the face of accusations of anonymous critics. But the road to perdition is littered with the charred broken bones of consolidators who failed to manage...I submit it is the vastly more common scenario. Serial acquirers often languish until they begin to divest. Of the 3 you cite, only Diageo is outperforming the S&P. The serial acquirers I own; AIG, CHK, DF, MUR have all performed better as serial divestors (AIG and DF are acquisitions since they began divestiture). I have recently owned more than one that took a profitable business to heck through aquisition of "immediately earnings accretive" businesses, including WPCS and DRIV...both of which have seemingly sensible and capable management.

Lastly, I do not claim that EBIX is a fraud. I'm inclined to take the MFs word for it, but nobody is right all of the time.

Takeaway: For the next little while, I think there has to be a brake on share price appreciation (so long as questions persist). Time may well heal it, but the risk/reward dynamic is pretty clear at this moment. If EBIX some day reflects its full value, I will have more than one opportunity to repurchase shares at the $18.65 that I sold at. I will continue to watch. If no shoe drops in six months, EBIX may be a very smart buy.

I'm rooting for all the longs on EBIX, and I really do hope to own EBIX in the future.

-Randy
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No. of Recommendations: 2
yesterday EBIX touched $15.26; a new low. It closed below it's open price, so likelihood is that it will drop lower yet.

IF no bad news comes out, EBIX may turn out to be a super opportunity. But no rush; hold steady; take advantage of yesterday's downgrade by The Street. It's arithmetic now. If the new low is $13.50 and it returns to it's 52 week high (which all of us think is pretty low), that's a double. If we can pick a stock that will double in two years, we picked a winner, right?

But there is still that IF.

-Randy, who's waiting patiently and anxiuosly in turns.
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