IIG Stock Short Squeeze

IIG, IMERGENT INC, was the subject of a longtime reader’s email to me. It is an interesting read, so I am going to post up the email here.

“Today I am writing about IIG (amex), which I think has finally made a bullish turn today. I won’t bore you with details except for the fact that the company has a 10.2 million float and out of which, 5.4 million have been sold short.

What’s amazing is that the shorts have hardly covered any of their positions during the last months:

Meanwhile, this stock is impossible to borrow anywhere, and some of the brokers are calling clients to “ask permission” to lend out their shares as the brokers are facing a “naked shorts” call-in’s and unable to deliver the stock. IIG has now been on the “naked short” list for 85 days continuosly – look at #19:

The key here is that the INSIDERS have hardly sold any shares during the last few months.

The stock market chart ran-up from $16 to over $32 following last quarter’s earnings, but now has come back down to the $20-$21 level support.

The stochastics are finally returning to positive and the RSI touched over “very oversold” level of 30 and has started to trend higher.

Since there are still a huge amount of shorts, I believe that there will be further short-covering / buying for the near future and believe that IIG will again revisit the $24-$26 price levels soon.

Please do your own DD before investing, as always. I have re-initiated my long position in IIG as of earlier today.”