Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Ebix (NASDAQ: EBIX ) have rebounded by as much as 14%, following the company's 26% plunge just days ago, after the company defended itself from the recent short attack.
So what: The stock was crushed on Thursday following a research report from Gotham City Research alleging accounting improprieties, which was also posted on Seeking Alpha. Ebix attended an analyst conference call hosted by Craig-Hallum Capital Group this morning to defend itself, where CEO Robin Raina and CFO Robert Kerris defended the company's books.
Now what: A transcript of the call is not available at this time, but the call was open to the general public. Ebix did reiterate in a press release that the company's accounting is appropriate and within SEC reporting requirements, including its accounting of intercompany loans which were a part of Gotham's allegations. Ebix said it is looking into legal recourse against what are seemingly "malicious, irresponsible, and self-serving blog posts." Gotham did disclose in its report that it would benefit should shares decline, so "self-serving" does seem apt.
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