Ebix (EBIX) Falls On Negative Article
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Shares of Ebix Inc. (Nasdaq: EBIX) are under heavy pressure following a negative article at SeekingAlpha.com, suggesting the company is a "House of Cards."
From the article: "We believe that EBIX is nothing more than a roll-up that has materially misrepresented its business (relative to the CEO's buzz words) as well as its organic growth. Its business model is predicated on two principals: tax arbitrage and dramatic cost cuts (headcount reductions and offshoring), neither of which is sustainable. Further, the company's tax arbitrage may be more than "just" unsustainable, it may actually be illegal."
Shares are down 6.6 percent intra-day.
Link to Article
From the article: "We believe that EBIX is nothing more than a roll-up that has materially misrepresented its business (relative to the CEO's buzz words) as well as its organic growth. Its business model is predicated on two principals: tax arbitrage and dramatic cost cuts (headcount reductions and offshoring), neither of which is sustainable. Further, the company's tax arbitrage may be more than "just" unsustainable, it may actually be illegal."
Shares are down 6.6 percent intra-day.
Link to Article
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