Market Read®

  • Sunday, September 25 2016

(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

  • GATS predicts EBIX will move up in the coming weeks. Target is $60.76. more
  • SQUEEZETRIGGER predicts that when EBIX closes above $21.39, 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 $68.29 which means the stock is undervalued compared to its price of $57.06.

Predictive Range September 22, 2016 - October 06, 2016

Anticipated price movement, between prediction date and target date, based on all market reads.
$56.53 - $60.76

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.

GATS

 

Reduces risk by selecting the highest probability trades across market indices.

Ebix Inc (NASDAQ: EBIX) is expected to go up as bullish signals have been generated by top equity trading strategies. This trading system is designed to identify high probability reversion to mean trading candidates. It looks to go long immediately following strong sell-offs, and goes short after sharp run ups. Its trades are short term and hone in on the irrational decisions of emotional traders around these extreme moves.

  • The price of EBIX expected to move up in the coming weeks.
  • Suggested stop level of 50.88 to limit potential trading losses.

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 21.39.

This means that when EBIX closes above $21.39, we expect a short squeeze to begin that could quickly drive the price of EBIX considerably higher.

Date Short Volume Short Value SqueezeTrigger
2016-09-30 1485260 81708608.38 55.013
2016-08-31 3202753 175836264.105 54.9016
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

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
2016-09-21 2.7 80180 62328 17852 66.11851852
2016-09-20 -0.56 30606 38848 -8242 -147.1785714
2016-09-19 1.0 55440 54234 1206 12.06
2016-09-16 -0.71 534616 66057 468559 Bearish Bias
2016-09-15 0.53 44902 53332 -8430 Bullish Bias
2016-09-14 -0.2 36360 50419 -14059 -702.95
2016-09-13 -1.63 104985 109106 -4121 -25.28220859
2016-09-12 -1.37 258529 244627 13902 Bearish Bias
2016-09-09 -1.56 100724 102452 -1728 -11.07692308
2016-09-08 0.53 53965 26696 27269 514.509434
2016-09-07 -0.37 67560 82399 -14839 -401.0540541
2016-09-06 0.72 51696 37290 14406 200.0833333
2016-09-02 0.13 70946 40060 30886 2375.846154
2016-09-01 0.82 22506 39256 -16750 Bullish Bias
2016-08-31 -0.83 79529 62405 17124 Bearish Bias
2016-08-30 0.13 24797 44927 -20130 Bullish Bias
2016-08-29 -0.46 26274 27097 -823 -17.89130435
2016-08-26 0.45 114607 67065 47542 1056.488889
2016-08-25 -0.5 69318 51033 18285 Bearish Bias
2016-08-24 -0.21 95640 85392 10248 Bearish Bias

Valuation

 

Value is a measure of a stock's current worth. EBIX has a current value of 68.29 per share. Therefore, it is undervalued compared to its Price of $57.06 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 18.058 82.75 16495 792 95.42%
SqueezeTrigger 14.974 21.74 11442 877 92.88%
Valuation 19.577 27.08 4010 317 92.67%
Seasonality 11.028 15.21 59684 6844 89.71%
Group Correlation 8.205 15.14 13036 1562 89.30%
PatternScan 12.14 11.42 244522 39133 86.20%
Events 9.826 11.16 4694 833 84.93%
GATS 8.65 7.88 89582 21092 80.94%
Earnings 12.952 10.46 24173 5882 80.43%
Naked Shorts 19.936 10.98 2880 788 78.52%
Friction Factor 10.589 3.62 8502 2613 76.49%

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$57.06
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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