No. of Recommendations: 16
Hi Tinker.

Please feel free to ignore EBIX since it doesn't meet your criteria. But please don't unjustly denigrate it. Someone who bought 14 years ago paid (split-adjusted -- a couple of 3:1s, if I recall correctly) less than $2 per share. It trades in the high $40s today.

My shares were bought in September 2008 and my cost basis is under $12. That was not exactly the sweetest of times. I would have done better had I waited six months. The day I bought, the S&P 500 was a little under 1200. As I stated earlier, my returns from EBIX (roughly a 300% gain) are much better than the S&P 500's return. Ebix has created long-term value.

Yes, the five-year chart isn't pretty. I haven't carefully followed this company for a while, and I'm hoping to piece together WHY 2018 was as bad as it was for Ebix. That's part of why I was excited by retirementdough's post and this board's general interest. It is possible that what I learn will cause me to bail out. Or maybe not. My risk tolerance is probably as different from yours as my interpretation of 14-year price charts.

Good luck with your investing, and many thanks for your copious contributions to this message board. But please save your derision for companies where it is truly warranted. Ebix is a huge "dud" over the past couple of years, but not a long-term dud. Are you sure you were factoring in the effective 9:1 split?

Hi Cham.

Thanks for your extremely kind words. I really enjoyed posting on the Pro boards and always felt that I was warmly welcomed there. I miss Pro. I'm glad to see you here. One thing I should mention regarding your "sniff test". If Ebix built a system sitting between an insurer and its brokers (captive and/or independent), do you think that the system would be Ebix-branded, or branded by the insurer? It is possible that you read too much into "lack of brand recognition" at the time. I don't want to say for sure, but to alert you that the possibility exists.

To the entire board...

One thing I forgot to mention with Ebix that really stuck in my craw... Ebix came close to being taken private, but the investment bank backed down late in the game. We'll never know all the sordid details, but it is my distinct recollection that CEO Raina would have profited from that deal far more than the average shareholder. I don't recall the details. Maybe my notes from years ago will help me remember. But it was one more item that added to my keeping my Ebix position relatively small and not life-altering. When I'm able to take the time to re-research the Ebix story, I'll try to include more details around that event. To say that I felt "thrown under the bus" definitely overstates things. I was glad that the deal didn't go through, and I'm happy that Ebix has grown since then. But it was a wedge in my trust of Ebix's management.


Fool on!
Thanks, and best wishes,
TMFDatabaseBob (long: EBIX)
See my holdings here: http://my.fool.com/profile/TMFDatabasebob/info.aspx
Peace on Earth

Please note: I am not a member of any newsletter team. My opinions are my own and do not necessarily reflect those of the TMF advisers. I want to share my research with you since we’re all part of the larger TMF Community.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.