Market Read®

  • Saturday, July 12 2014

(NASDAQ: EBIX)

Ebix Inc


Bullish

Ebix, Inc. provides software and e-commerce solutions to the insurance industry. The company operates data exchanges, which connect various 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 also focuses in the area of broker systems on designing and deploying 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, a system 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 provides 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. offers 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.

Investment Highlights

  • SEASONALITY expects the price of EBIX expected to move up to $16.74 by August 01, 2014. more
  • SQUEEZETRIGGER predicts that when EBIX closes above $20.41, we expect a short squeeze to begin that could quickly drive the price of EBIX considerably higher.
  • VALUATION EBIX has a current calculated value of $21.35 which means the stock is undervalued compared to its price of $12.56.

Predictive Range June 25, 2014 - August 01, 2014

Anticipated price movement, between prediction date and target date, based on all market reads.
$14.48 - $16.74

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

Seasonality

 

Predicts probability and percentage of stock movements based on seasonal factors.

Ebix Inc (NASDAQ: EBIX) is predicted to go up in coming weeks based on bullish trends that appear around this time of the year. By identifying stocks that are poised to go up or down based on seasonal tendencies, traders can increase their odds of making money. EBIX, currently trading at 12.56 expected to hit $16.74 by August 01, 2014.

  • The price of EBIX expected to move up to $16.74 by August 01, 2014.
  • Expected gain of 15.61% from price at time of prediction (14.48).
  • This pattern has held 12.0 of the last 14.0 seasonal periods. (85.71%)

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for EBIX is 20.41.

This means that when EBIX closes above $20.41, we expect a short squeeze to begin that could quickly drive the price of EBIX considerably higher.

Date Short Volume Short Value SqueezeTrigger
2014-06-30 1477123 21082533.4421 14.2727
2014-05-31 1607836 25742901.4124 16.0109
2014-04-30 1867091 31066153.7308 16.6388
2014-03-31 3386341 57886451.6881 17.0941
2014-02-28 2095405 32355777.2265 15.4413
2014-01-31 1045981 15132834.7156 14.4676
2013-12-31 1726813 24254124.6728 14.0456
2013-11-30 2963911 38656216.4353 13.0423
2013-10-31 3271883 37036079.6185 11.3195
2013-09-30 3823909 39892165.8607 10.4323
2013-08-31 9681684 108485205.557 11.2052
2013-07-31 6902842 76165958.628 11.034
2013-06-30 11221643 146583833.852 13.0626
2013-05-31 5206078 102992361.682 19.7831
2013-04-30 1672137 28864596.1077 17.2621
2013-03-31 2910479 45668908.0848 15.6912
2013-02-28 611436 9901778.0148 16.1943
2013-01-31 2454408 40391947.0152 16.4569
2012-12-31 2776871 44846744.3371 16.1501
2012-11-30 64730 1449628.35 22.395

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused EBIX's price to rise
  • If Friction Factor is negative, more selling than buying caused EBIX's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2014-06-25 0.19 150736 111089 39647 2086.684211
2014-06-24 -0.05 143720 142941 779 Bearish Bias
2014-06-23 0.22 217180 180158 37022 1682.818182
2014-06-20 -0.28 179879 462524 -282645 -10094.46429
2014-06-19 -0.14 129111 180086 -50975 -3641.071429
2014-06-18 0.6 383094 278209 104885 1748.083333
2014-06-17 0.22 218843 214051 4792 217.8181818
2014-06-16 0.13 185133 225369 -40236 Bullish Bias
2014-06-13 0.3 340276 327950 12326 410.8666667
2014-06-12 0.34 263574 330418 -66844 Bullish Bias
2014-06-11 0.12 173919 229943 -56024 Bullish Bias
2014-06-10 0.24 377796 322543 55253 2302.208333
2014-06-09 -0.18 407098 321007 86091 Bearish Bias
2014-06-06 0.13 596461 705914 -109453 Bullish Bias
2014-06-05 0.19 602302 551757 50545 2660.263158
2014-06-04 -2.3 2317198 2328890 -11692 -50.83478261
2014-06-03 -0.19 246625 242839 3786 Bearish Bias
2014-06-02 -0.55 274203 277576 -3373 -61.32727273
2014-05-30 -0.2 136084 204827 -68743 -3437.15
2014-05-29 -0.16 110483 108617 1866 Bearish Bias

Valuation

 

Value is a measure of a stock's current worth. EBIX has a current value of 21.35 per share. Therefore, it is undervalued compared to its Price of $12.56 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease.

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 15.14 73.22 9094 472 95.07%
SqueezeTrigger 12.746 22.38 7780 471 94.29%
Group Correlation 7.358 15.0 1309 86 93.84%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.455 15.2 42634 4138 91.15%
PatternScan 8.448 11.36 133678 19298 87.38%
Events 6.937 11.19 3396 544 86.19%
GATS 5.386 7.94 45118 8572 84.03%
Earnings 8.677 10.28 21694 4355 83.28%
Naked Shorts 14.525 10.84 2232 589 79.12%
Friction Factor 7.506 3.63 5606 1607 77.72%

Prediction Success

 

Past success in predictions regarding Ebix Inc.

  • October 23, 2013 - Ebix Inc (NASDAQ:EBIX), Up By 9.27% ($1.08) From $11.650 After ${brandname}.com Report Predicted Stock Would Go Up Due To Bullish Conditions

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$12.56
52 Week Range$8.31 - $17.95
1 Month Range$12.80 - $14.89
Avg Daily Volume528965.0
PE Ratio9.76
 
Earnings Per Share
YearEPS
2014(E)$1.48
 
Capitalization
Shares Outstanding38MM
Market Capitalization$541.20MM
 
 

QUESTIONS?

ACCOUNT SUPPORT 855-879-3258
EMAIL - support@wealthmakers.com