Ebix Inc. (EBIX)

It's going to be very difficult to find time to blog from now on as I have very limited time to spend. On the other hand, I am doing a lot of screening and research, hopefully will generate better ideas in the coming year.

EBIX: Q3 results










Valuation remains reasonable at current level, trading at 14X of its 2006 EPS. Unique business, good management, consistent results. Clean balance sheet. At a bit lower level, it would be a stele.

VSNT Q4/06 results: Revenues up by 21%, EPS 0.38 vs 0.14 (171%). EBT guidance for 2007, $4.4-$4.6 million (1.2-1.27). Balance sheet clean with $8.2 million cash ($2.28 per share). Even with today?s 20% run up, valuation remains undervalued (12.5X of its 2007 EBT).

My only concern is the overall condition of the market, which I believe is a bit of over-bought. While I understand that an over-bought market could be further over-bought, I just don't want to jump in here. I'll rather wait to see if there's a better entry point.

Positions: None