Company name Ebix Inc
Stock ticker EBIX
Live stock price [stckqut]EBIX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $30.43
Target stock price (averages with growth) $43.68
Target stock price (averages with no growth) $31.83
Target stock price (manual assumptions) $26.82

The following company description is from Google Finance: http://www.google.com/finance?q=ebix

Ebix, Inc. (Ebix) is an international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. As of December 31, 2011, approximately 77% of Ebix revenues came from on-demand insurance Exchanges. On February 7, 2011 Ebix merged with ADAM, Inc. (ADAM) with a wholly owned subsidiary of Ebix. On November 15, 2011, Ebix acquired Health Connect Systems, Inc. (Health Connect). On June 8, 2012, the Company acquired PlanetSoft, Inc. In June 2012, the Company acquired Fintechnix. In August 2012, the Company acquired TriSystems Ltd., a online insurance trading hub that facilitates commercial insurance and reinsurance transactions between London intermediaries and insurance companies.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

Company name Ebix Inc
Stock ticker EBIX
Live stock price [stckqut]EBIX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $36.33
Target stock price (averages with growth) $49.87
Target stock price (averages with no growth) $34.25
Target stock price (manual assumptions) $36.99

The following company description is from Google Finance: http://www.google.com/finance?q=ebix

Ebix, Inc. (Ebix) is an international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. As of December 31, 2011, approximately 77% of Ebix revenues came from on-demand insurance Exchanges. On February 7, 2011 Ebix merged with ADAM, Inc. (ADAM) with a wholly owned subsidiary of Ebix. On November 15, 2011, Ebix acquired Health Connect Systems, Inc. (Health Connect). On June 8, 2012, the Company acquired PlanetSoft, Inc. In June 2012, the Company acquired Fintechnix. In August 2012, the Company acquired TriSystems Ltd., a online insurance trading hub that facilitates commercial insurance and reinsurance transactions between London intermediaries and insurance companies.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

 

Motley Fool is a great website with very useful advice for investors. They recently ran an article that discussed the one investment you should make if you are a new investor and can only afford one stock. Their choice was The Procter & Gamble Company [stckqut]pg[/stckqut]. I haven’t review P&G in a long time (almost 2 years) and the EPS growth has improved slightly so it is now probably a Fair company as opposed to a Poor company back then. The article made me think – what one company would I recommend for a new investor?

Obviously, my choice would not be P&G since it didn’t make my Watch List. In fact, the stock has been fairly flat since I reviewed it 2 years ago (it is trading within 2 or 3 dollars today of what it was doing in February 2010). I have nothing against P&G as the company makes fine products. I brush my teeth and wash my body and clothes with P&G products on a regular basis. But making good products is not good enough. Motley Fool describes how P&G doesn’t surprise its investors very often and has a stable dividend. My problem with that logic is that if you are a new investor then you are likely a young investor (and by young I am saying under 60 years old) and you need your investment to accumulate for several decades.

As I pondered this question, I remembered my favorite advice to investors of all ages: don’t buy and hold rather buy and evaluate! Buying one stock and assuming you are going to keep it for decades is almost a guaranteed losing proposition compared to riding the fastest moving stock at the time.  The new investor needs to be agile with money. Buy a stock that is growing nicely and then when it starts to go flat or decrease in value, dump it and buy a different company that is hot.

Today, that one stock could be Apple [stckqut]aapl[/stckqut] or Coach [stckqut]COH[/stckqut] or Ebix [stckqut]ebix[/stckqut] since these three are all doing nice runs as I write this article (and there are others on the Watch List that are having nice runs as well.) Tomorrow is another question. I have no idea who will be having a solid run tomorrow or next week or next month. I do know that eventually all companies go flat and have a pull-back so I want to jump off the train when that happens and catch the next fast moving express.

So nothing against the good folks at Motley Fool, but I think the advice of one stock is just not good advice. I want to beat the market, not just match it with a “safe” investment.

Company name Ebix, Inc.
Stock ticker EBIX
Live stock price [stckqut]EBIX[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $21.45
Target stock price (averages with growth) $37.4
Target stock price (averages with no growth) $33.33
Target stock price (manual assumptions) $21.51

The following company description is from Google Finance: http://www.google.com/finance?q=ebix

Ebix, Inc. (Ebix) is an international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a range of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. As of December 31, 2010, approximately 71% of Ebix revenues came from on-demand insurance Exchanges. It has operations in Australia, Canada, China, India, Japan, New Zealand, Singapore and Brazil. The Company operates through four main channels: Exchanges, Carrier Systems, Broker Systems and Business Process Outsourcing.

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

Several times a year, a Confident Investor must reevaluate the companies in the portfolio. Keeping your money in a stock that no longer qualifies as a “Good” company can end up hurting your investment performance a great deal.  Also, there are a lot of Good Companies so losing the worst of the best is not going to impact the ability to have a balanced portfolio.  Over the coming days, this site will evaluate each stock on the Watch List.

Company name Ebix, Inc.
Stock ticker EBIX
Live stock price [stckqut]EBIX[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $42.22
Target stock price (averages with growth) $54.26
Target stock price (averages with no growth) $33.71
Target stock price (manual assumptions) $39.7

The following company description is from Google Finance: http://www.google.com/finance?q=ebix
Ebix, Inc. (Ebix) is an international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. The Company operates in four segments: Exchanges, Carrier Systems, Broker Systems and Business Process Outsourcing. Effective October 1, 2009, Ebix acquired E-Z Data, Inc. (E-Z Data). Effective October 1, 2009, the Company acquired Peak Performance Solutions, Inc. (Peak). Effective May 1, 2009, Ebix acquired Facts, Inc. (Facts). In May 2010, the Company acquired Connective Technologies, Inc. In February 2011, the Company announced the closing of the merger of A.D.A.M., Inc. with a wholly owned subsidiary of Ebix.

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.