Ebix Inc has entered into an agreement to be acquired by Goldman Sachs for $20/share. After the news broke (May 1, 2013), I recommended members to sell all EBIX stock and sold my position at $20.50/share. We were able to sell the shares at prices ABOVE the acquisition price for two reasons: The market believes [...]
EBIX – Ebix Inc.
Ebix, Inc. provides on-demand software and e-commerce solutions to the insurance industry. The company operates data exchanges, which connects multiple entities within the insurance markets and enables the participant to carry and process data from one end to another in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualty (P&C) insurance. It is also involved in designing and deploying broker systems comprising three back-end systems consisting of eGlobal for multinational P&C insurance brokers; WinBeat for P&C brokers in the Australian and New Zealand markets; and EbixASP for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services, which include certificate origination, certificate tracking, claims adjudication call center, and back office support. Further, it focuses on designing and deploying on-demand and back-end carrier systems, such as Ebix Advantage and Ebix Advantageweb targeted at small, medium, and large P&C carriers in the United States and internationally that operate in the personal, commercial, and specialty line areas of insurance. Additionally, Ebix, Inc. provides software development, customization, and consulting services to various companies in the insurance industry, such as carriers, brokers, exchanges, and standard making bodies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Atlanta, Georgia.
Source: Yahoo Finance
Note: This is a position that we have exited now and was originally recommended to premium members. Please also note that subsequent to our exit, the Goldman Sachs acquisition fell through causing major declines in the stock. At this time Ebix is not recommended even at low price due to waning faith in the management [...]
More Best Stocks for 2013 62 Dividend Stocks for 2013 27 Small Cap Stocks for 2013 Only 2 Stocks Make the Best Large Caps for 2013 List 15 Mid Cap Stocks for 2013 A company that is growing its book value at a good clip while the stock still remains cheap based on traditional valuation [...]