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.
Charly Travers has no position in any stocks mentioned. Chris Hill has no position in any stocks mentioned. The Motley Fool recommends Ebix and Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.