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What: Shares of insurer GEROVA Financial
So what: Suspense, intrigue, conspiracy ... in the stock market? It sure looks that way. GEROVA is an off-shore reinsurer that has come under fire for allegedly overvaluing the assets on its books and allegedly engaging in other fraudulent activity. Dalrymple Financial, an unknown research company and GEROVA short-seller, was behind a recent "research report" that made many bold claims against GEROVA. Today's announcement from GEROVA shows that the company isn't interested in taking any guff from some short-seller.
Now what: If only Dalrymple were GEROVA's only concern. The Dalrymple report was dated Jan. 10. Five days before that, Forbes writer Neil Weinberg took the company to task with similar allegations. And today's action in the stock suggests that the market isn't exactly convinced of GEROVA's innocence. Perhaps investors would prefer to see some sort of clarifying financial disclosure rather than shareholder money being spent to try to discredit a no-name short-seller? Just a thought.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his Motley Fool CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.