EBIX Could Make a Turnaround

Having lost about 50% of it's value since March 24 '11, EBIX Inc.'s (EBIX) stock has found a base and could be poised for a rebound.

Ebix, Inc. provides on-demand software and e-commerce solutions to the insurance industry.

Here are some of the positive aspects:

1. 3 month support base at about 15.
2. Crossed and held above the 50 dma for 7 trading days; note that
yesterday it broke the pattern and, if not reversed, could retest
the lows.
3. Price support at about 15, limiting the downside exposure.
4. Adequate average daily volume of about 527 thousand shares.
5. Earnings have increased annually for at least 8 years, with a slight
decrease estimated for '12.
6. Forward P/E ratio is estimated around the mid 9's.
7. The stock is heavily shorted, so the bearish pressure could keep it
down for a while, or propel it on a "short squeeze".

Closing yesterday at 15.53, EBIX is a stock to be considered.
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