Market Read®

  • Wednesday, August 24 2016

This prediction has passed its maturity date!

This prediction was valid between July 14, 2016 and July 19, 2016. All information in this report is for reference only and should not be considered forward looking.

(NASDAQ: EBIX)

Ebix Inc


Bullish

Ebix, Inc. provides on-demand software and e-commerce solutions for 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 domain intensive project management, and time and material consulting engagements, as well as the provision of claims adjudication and settlement, call center, and back office support. Further, it offers risk compliance solution services, such as insurance certificate origination, certificate tracking, claims adjudication call center, and back office support; and 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, the company 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 Johns Creek, Georgia.

Investment Highlights

  • EVENTS detects that a positive price event has occurred, historically indicating that the price will move up to $55.60 by July 19, 2016. Specifically, High higher than all-time high has been detected. more
  • SQUEEZETRIGGER predicts that when EBIX closes above $20.94, 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 $63.00 which means the stock is undervalued compared to its price of $58.23.

Predictive Range July 14, 2016 - July 19, 2016

Anticipated price movement, between prediction date and target date, based on all market reads.
$53.48 - $55.60

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.

Events

 

Uses historical patterns in stock price and volume changes to help time buying and selling decisions.

Ebix Inc (NASDAQ: EBIX) is expected to go higher. Events detect patterns in price and volume movement that have historically preceeded predictable stock movements. EBIX has demonstrated a High higher than all-time high technical event that has been predictable 13.0 of the last 16.0 occurrances.

  • The price of EBIX expected to move up.
  • Positive patterns detected in the price movement of the stock indicates the price should move to $55.60 by July 19, 2016.
  • Of the previous 16 occurrances of High higher than all-time high event, EBIX has moved up 81% of the time.

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 20.94.

This means that when EBIX closes above $20.94, we expect a short squeeze to begin that could quickly drive the price of EBIX considerably higher.

Date Short Volume Short Value SqueezeTrigger
2016-07-31 582722 28813097.1954 49.4457
2016-06-30 3022371 143032498.627 47.3246
2016-05-31 3759155 175770569.49 46.758
2016-04-30 721051 29370065.6473 40.7323
2016-03-31 1371495 54756663.576 39.9248
2016-02-29 1074025 34714313.8425 32.3217
2016-01-31 1809089 56497487.6522 31.2298
2015-12-31 1444590 49366696.365 34.1735
2015-11-30 1499879 51127875.352 34.088
2015-10-31 506131 12967329.2855 25.6205
2015-09-30 1261712 34339006.1344 27.2162
2015-08-31 1999513 61073125.072 30.544
2015-07-31 397655 13287283.9355 33.4141
2015-06-30 1146563 38753141.4622 33.7994
2015-05-31 2036626 68465256.242 33.617
2015-04-30 1888546 55033552.4222 29.1407
2015-03-31 88332 2314148.2356 26.1983
2015-02-28 1299836 32917306.8312 25.3242
2015-01-31 2460749 49966246.6697 20.3053
2014-12-31 709808 11600463.1248 16.3431

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
2016-07-13 -0.34 87735 64731 23004 Bearish Bias
2016-07-12 1.7 204121 222189 -18068 Bullish Bias
2016-07-11 2.98 228908 237025 -8117 Bullish Bias
2016-07-08 1.69 81532 109855 -28323 Bullish Bias
2016-07-07 -0.4 34403 45359 -10956 -273.9
2016-07-06 0.23 53239 38343 14896 647.6521739
2016-07-05 -0.07 55010 49196 5814 Bearish Bias
2016-07-01 0.1 51047 42183 8864 886.4
2016-06-30 1.14 90040 55999 34041 298.6052632
2016-06-29 0.53 83080 68584 14496 273.509434
2016-06-28 0.83 69277 50588 18689 225.1686747
2016-06-27 -1.11 126355 93069 33286 Bearish Bias
2016-06-24 -2.11 132138 215986 -83848 -397.3838863
2016-06-23 0.9 58887 36357 22530 250.3333333
2016-06-22 0.05 57761 70165 -12404 Bullish Bias
2016-06-21 -0.12 46391 36938 9453 Bearish Bias
2016-06-20 1.32 70080 59826 10254 77.68181818
2016-06-17 -1.24 84723 248154 -163431 -1317.991935
2016-06-16 0.78 62530 76627 -14097 Bullish Bias
2016-06-15 -0.5 81880 82303 -423 -8.46

Valuation

 

Value is a measure of a stock's current worth. EBIX has a current value of 63.0 per share. Therefore, it is undervalued compared to its Price of $58.23 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 18.131 83.09 16090 812 95.20%
SqueezeTrigger 14.956 21.72 11306 874 92.82%
Valuation 19.577 27.08 4010 317 92.67%
Seasonality 11.099 15.23 59121 6675 89.86%
Group Correlation 8.304 15.22 12508 1523 89.15%
PatternScan 12.225 11.44 240987 38739 86.15%
Events 9.85 11.18 4656 829 84.89%
GATS 8.714 7.89 88138 20720 80.97%
Earnings 12.954 10.44 24146 5877 80.43%
Naked Shorts 19.997 10.97 2849 780 78.51%
Friction Factor 10.71 3.62 8371 2574 76.48%

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$58.23
52 Week Range$8.31 - $17.95
1 Month Range$12.33 - $14.89
Avg Daily Volume557580.0
PE Ratio8.72
 
Earnings Per Share
YearEPS
2016(E)$1.48
 
Capitalization
Shares Outstanding38MM
Market Capitalization$481.00MM
 
 

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