Imergent's Wild Ride
While that's not necessarily proof of naked shorting, Goldman and Brad Halvorsen, an analyst with NorthPointe Capital, a large holder of Imergent, say there's no other reasonable explanation. Various technical maneuvers can temporarily inflate the number of ghost shares, but at some point, all positions have to be covered.
That so many shares of Imergent have not been delivered is suspicious, they say, and is apparently the focus of an investigation by the NASD, which handles some regulatory matters for the Amex. The exchange refused to confirm the existence of the investigation, but three sources close to the company say it is under way.
Since January 2005, Regulation SHO has required stock exchanges to keep a "threshold list" of securities that have a sizable failure-to-deliver position.
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