Small float…much of it short. What’s not to like about Ebix, Inc. (EBIX)? (November 21, 2016)
EBIX
I want to focus on Ebix ( NASDAQ:EBIX ) here in this Free Chart video and here’s why: 30 percent of the float is short. You can see what it trades, a little bit higher than average today, 28 million shares are in the float. So the bottom line is, the float isn’t that great, isn’t that big. Lots of shares are held by shorts and the stock has just broke up above $60.00. Oh! And by the way, earnings are behind us, next ones are not until March. So here is my suggestion: I think you want to be long this stock. I am long this stock and what I would suggest doing is, putting a stop just a little bit below, I wouldn’t even go below 58.00, I would put it back here around 59.00 or so, something like that.
Here is the thing, the stock is breaking out above this level. If it doesn’t continue higher and instead you get stopped out, well you probably don’t want to be long this stock anyway. So you take some stock now, and if the stock continues to move you build a position; just continue to buy more as the stock moves higher because it is in a solid uptrend. It has been consolidating in a high base here for over 3 months. So I would have a profit target of say another 15 percent higher than it is right now, up to around 70.00 or so. If it gets up to that level you probably want to take some profits or at least snug up your stops. Ultimately though, again, high short interest, low float. Nice chart, high base. What is not to like in this? Except maybe you don’t own it.
Free Chart