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No. of Recommendations: 0
With EBIX as thinly traded as it is, there is nothing to stop the speculative shorts. That is unless management takes steps to make it difficult on them. The dividend has been minuscule for years. Also, announcing a planned split that never comes to fruition plays into the hands of the nay sayers. EBIX should make a commitment to moving up the dividend yearly by a few percent. They also should follow through on announcements like the stock split. Otherwise, this all seems to be window dressing. It seems that management has found it easy to concentrate more and more in Robyn's hands through stock buy backs and his taking his salary in shares. Good for him, but is it good for us?
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I really prefer that they not raise the dividend. It doubles the taxes, and the money is better spent, in my view, in either growth, paying down debt, or buying back shares. The shorts may be able to stay for awhile, but they can't stay forever. As long as EBIX continues to execute, growing by 30% each year--as they have for quite a while now--the market will eventually price it closer to intrinsic value. While we wait, what a great opportunity to have the company buy back shares; that's a *huge* benefit to shareholders that stay the course.

The one way this approach could turn ugly is if EBIX didn't have access to funding its growth opportunities. This doesn't seem to have happened, and I don't see any signs of it on the near horizon.

In sum, I think there are huge benefits to waiting this out if we shareholders can. And the recent elections in India were, on balance, a positive for EBIX I think.
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No. of Recommendations: 1
I'm concerned that as long as they are this massively undervalued they could get bought out for far less than fair value. I think low end of fair value is close to $150. My sell order is for $350, that is supposed to prevent my shares from being borrowed by sleazy shorts. I am looking forward to news on a favorable private equity deal.
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