Josh Sebastian

iMergent Practicing 'Cookie Jar Accounting'?

OK, I'll start by saying I'm a bear on this stock. I am also in the tech/ecommerce field and I will factually tell you why this company is a fraud and a train wreck. If you own this stock as a momentum play, good for you. If you own as an investment or are thinking of buying, please read first.

1. Imergent is listed as a software / tech company in the ecommerce focus. To read more at Reuters: stocks.us.reuters.com/...

However, this isn't really true. Yes, they provide software, but there is no competitive advantage. They make their money by hosting all day seminars or "training sessions." At these training sessions they convince individuals and businesses how "easy" it is to start or expand an online company, then talk them out of $3,000-5,000 for setup and training.

Here is the secret you may already know; nothing is that easy. There is no get-rich-quick.

2. In the process of doing "business" Imergent has had to settle numerous lawsuits and complaints regarding their "free" seminars and practices. They can't even practice their craft in their home state of Utah.

The Salt Lake Tribune: Reporting in IL investigation 12/06
www.sltrib.com/ci_4911...

Attorney General of Texas Settlement May 06
www.oag.state.tx.us/co...

Better Business Bureau Warning:
www.spokane.bbb.org/al...

Critique by SeekingAlpha and Investigated by SEC
smallcap.seekingalpha....

3. So lets pretend this is an amazing software company and you want to attend a seminar. Lets visit the site and see when they're coming to town! www.imergentinc.com

But you wont find anything there, because imergent doesn't want you to know what they really do.

So let's see if we can find any information on their subsidiaries mentioned in Reuters. "Stores Online" and "Galaxy Mall." Well, Galaxy Mall has been shut down, but you can still Google it. Stores Online is still alive, but you should Google it too. WHY? You'll see nothing but complaints, fraud reports and warnings.

StoresOnline.com - poor service experience - have asked for refund of $10284
complaints.com/may2003...

Rip Off Report:StoresOnline Merchants Forum And Storesonline
ripoffreport.com/repor...

www.stocklemon.com/art...

It goes on for days.

Could you imagine if this were Apple, or Cisco, GSIC or anyone else? Upset customers, lawsuits, SEC investigations? Subsequently 50% of the available stock is being shorted by wall street. Please don't get caught in the stampede when the big money leaves. Even the CEOs have sold all of their stock, you can read it on Reuters of SEC website...