Imergent's Wild Ride
Danks claims that many of the complaints were bogus, generated by the shorts to beat down the stock. However, that's tough to prove. "When a company blames anything on short-sellers, it's a sure sign to short the company," says Cuban, who did it once, and if the stock goes up, he'll short it again, he says.
The 2005 Texas suit was settled last year, with Imergent admitting no wrongdoing. As part of the settlement, Imergent agreed to establish a $400,000 fund used to reimburse disgruntled customers.
Despite the barrage of criticism, the stock has recovered. On Tuesday, shares jumped nearly 7% to close at $18.89 after the company announced that it had formed a new sales team, its ninth. Also boosting the stock was a sharp short-squeeze, says Dylan Wetherill, founder of ShortSqueeze.com.
What expectations does Wall Street have for this stock? It's hard to know, since only one analyst who follows Imergent, Michael Shonstrom at Emerging Growth Equities, rates the stock a buy.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV