Few companies are having as bad a week as Ebix (NASDAQ: EBIX ) , the insurance software company. Shares have fallen more than 50% now that Ebix is the subject of a criminal probe for intentional misconduct. As a result, the merger agreement Ebix had with Goldman Sachs (NYSE: GS ) is off. Is this stock a value play or value trap? In this installment of Stock of the Day, Motley Fool analyst Charly Travers shares why he believes investors should let the dust settle from this investigation before adding Ebix to their watchlists.
During the financial crisis, Goldman Sachs did so well avoiding the worst of the fallout that it had to downplay its success to duck public ire and conspiracy theories. Today, Goldman is still arguably the powerhouse global financial name, and yet its stock trades at a valuation of less than half what it fetched prior to the crisis. Does this make Goldman one of the best opportunities in the market today? To answer that question, I invite you to check out The Motley Fool's special report on the bank. In it, Fool banking expert Matt Koppenheffer uncovers the key issues facing Goldman, including three specific areas Goldman investors must watch. To get access to this report, just click here.