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Ebix 3Q20 schedule and AMSC orders ?4

09:33 03-Nov-20


Ebix has scheduled its third quarter report for the morning of November 9th.  The midpoint of 2 analyst estimates is 81+/-18 cents of EPS from $119+/-10M increasing to $12/+/-8M this quarter.

India's COVID-19 cases have been dropping sharply over the past month, and though it is still far too early to say the country is out of the woods, early untracked cases and a youthful population with tolerance for adverse conditions are arguments for optimism.  EBIX was on a downward trend long before the virus hit, but under $20 it is almost 50% below pre-pandemic levels.  The core insurance business has been steady, and if Ebix meets estimates, its hybrid P/E would be just under 6.  Obviously that's cheap, but it needs to be measured against the debt and an IPO timetable.  Even with a reduced valuation for EbixCash, it may be time to take a chance on EBIX, so long as the company can get back on track to complete the IPO within two years. 

It's a big chance to take, though.  In addition to seeing whether or not the recovery holds, we will have to see if the market keeps looking to international growth after today's election.  AMSC just announced $15M of primarily American renewable energy orders.  That is positive but expected from the last earnings report.  The appeal of safety shouldn't be under-estimated, and Ebix is anything but.