Core Insights - Laurent Condon has won the annual short-selling contest for the third time, achieving a 99.7% gain by shorting Mullen Automotive Inc., whose stock price fell from $45 to 13 cents per share [1][4] - The contest, named "Short Sellers Don't Have Horns," highlights the role of short sellers in countering overvalued stocks, despite the inherent risks of short selling [2] - Condon's previous wins include 2017-18 and 2021-22, and he has also performed well in traditional stock picking contests [3] Company-Specific Insights - Mullen Automotive has a concerning history of reverse stock splits, having executed five such splits from 2016 to 2023, indicating potential desperation [4] - Condon's second-place competitor, referred to as "Sam," achieved a 97.16% return by shorting MSP Recovery Inc., which has seen its revenue decline from over $23 million in 2022 to less than $8 million in the past four quarters [7][8] - MSP Recovery conducted a reverse split last year, consolidating shares at a ratio of 1-for-25, and currently has revenue of $160,000 against expenses exceeding $50 million annually [8] - The third-place contestant, Harry Feld, shorted ShiftPixy Inc., which fell 93.85%, citing its lack of profitability and an impending 1-to-24 reverse split as reasons for his decision [9]
Trader in France Scores 3rd Victory in Short Selling Contest