Ebix, Inc. (NASDAQ:EBIX)

CAPS Rating: 5 out of 5

The Company is an international provider of software and Internet-based solutions for the insurance industry.

Recs

1
Player Avatar ayaghsizian (97.45) Submitted: 8/13/2011 6:12:50 AM : Outperform Start Price: $16.39 EBIX Score: -1.44

I can't believe I haven't up-thumbed this yet. I used to own this one and will be getting in again Monday around $16. Might sell weekly puts at 15 or 16 for good premiums. The PE is low and the PEG is so low it's ridiculous. This low valuation shows that the bad news surrounding this company has been priced into the stock prices. Worst case scenario - price goes down over the next few years and we all realize that we've been screwed. Best case scenario - bad news goes away and PE ratio doubles or more due to great earnings growth and stock trades in the $40's in a couple years. I'm willing to take the risk.Does anyone trade options on this one?

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