Its incredibly difficult to make big money shorting stocks. You need a strong conviction in your bets. You need to have a firm belief that something is cooking in the company that most people overlook or choose to ignore. Those shorting stocks during theCOVID-19 pandemichave made more than $50 billion in profits.
Here we take a look at the top shorts of each year between 2013 and 2020. The list is based on data fromActivist Insight Shorts. Josh Black of Activist Insight has given double credit where two short sellers were first and second on the same idea, though their campaign returns might be slightly different.
Short selling is when you bet against astockand profit when it falls. Short sellers borrow shares from investors and then sell them at market price. They expect the stock to decline by a specified future date (the expiration date). If/when the stock tumbles, the short seller buys it back at ridiculously low prices to return to theinvestorfrom whom they had borrowed. The short seller pockets the difference. But sometimes shorting backfires when the stock in question skyrockets.
These are the top shorts between 2013 and 2020 (so far):
Want more short ideas? Check out our upcoming virtual conference with top shortsellers on August 11th.
Short seller The Street Sweeperreleasedan explosive report on Miller Energy Resources in 2011, questioning its accounting practices. The East Tennessee-based oil and gas exploration company slammed the report. Miller CEO Scott Boruff said The Street Sweeper was using deceptive and manipulative tactics to bring down the stock. The Street Sweeper announced in December 2013 that it was shorting Miller Energy. The campaign return stood at a staggering 99.92%. TheSecurities and Exchange Commission(SEC) found that Miller and its executives had "violated the federal securities laws by materially overstating the value of certain oil and gas assets acquired in Alaska on its financial statements."
Apptigo was a technology company engaged in the design and development of smartphone apps. It was the company behind the SCORE match-making app. Short seller GeoInvesting (FG Alpha Management) accused that the company's leadership was engaged in pumping up the stock around the same time Apptigo was hailed as "The #1 Mobile App Tech Stock of 2014." GeoInvesting's short bet gave 99.96% in campaign returns.
Headquartered in Irving, Texas, Adeptus operates free-standing emergency rooms. Short seller Long-Short Value announced in September 2015 that it was shorting the stock. By early 2016, Adeptus had thehighestshort interest among the US-listedstocks. The healthcare companyfiled for Chapter 11 bankruptcyin 2017 amid soaring debt and falling demand. Adeptusemergedfrom the bankruptcy a few months later after completing its financial restructuring. The campaign returned a handsome 98.87%.
Tech Pro Technology is a Hong Kong-based manufacturer of LED lighting products and accessories. In June 2016, GeoInvesting announced that it was shorting the stock. GeoInvesting said at theSohn Conference Hong Kongthat the stock was "grossly overvalued" and "detached from the reality." A little over a month later, Glaucus Research Group announced that it was also shorting Tech Pro Technology. Both short sellers generated about 96.3% in campaign returns.
New York-based Helios and Matheson was a data analytics company. It acquired a controlling stake in MoviePass, a movie subscription service, in 2017. MoviePass was burning cash at an unprecedented pace. The Street Sweeper announced in September 2017 that it was shorting Helios and Matheson. Its shares fell from $38 in October 2017 to $0.21 in July 2018. The company said in January 2020 that it wouldfile for Chapter 7 bankruptcyand liquidate its assets.
Orchids Paper Products is a manufacturer of consumer tissue products. In 2012, Forbes magazine named it among "America's Best Small Companies." The company started facing financial challenges in 2016 due to rising input costs and increasing competition. But the CEO's compensation remainedmuch higherthan the industry average. White Diamond Research announced in December 2018 that it was shorting the stock with 100% downside target. The campaignreturned 99.7%.
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Helius is a neurotechnology company focused on neurological wellness. In January 2019, White Diamond Researchpublished an articleon Seeking Alpha claiming Helius' only product was an "ineffective device." The short seller also alleged that Helius Medical's founders had "a history of questionable marketing practices." White Diamond evensent a letterto the USFDA, urging them to reject the company's marketing application for the PoNS device. The campaign returned 94.93%.
Luckin Coffee Inc. was hailed as the Starbucks of China. Its growth rate had shocked the Wall Street. In January 2020, Muddy Waters Researchpublished a scathing reportsaying Luckin Coffee was a "broken business" engaged in an accounting fraud. Just days later, J Capital Research confirmed that it was also shorting the stock. When Muddy Waters and J Capital both are shorting a stock, you wouldn't want to be on the other side of the table. After its fraudulent accounting practices came to light, the Chinese company fired its CEO and COO, and Nasdaq halted the trading of its shares.
Want more short ideas? Check out our upcoming virtual conference with top shortsellers on August 11th.
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Top Shorts In The Last Eight Years That Paid Off Big Time - Yahoo Finance
- Systems-Based Neurotechnology for Emerging Therapies (SUBNETS) - December 8th, 2016 [December 8th, 2016]
- Backing British innovation: Royal Academy of Engineering launches ... - Elite Business Magazine - February 13th, 2017 [February 13th, 2017]
- Global Fingerprint Biometrics in the VAR Market 2016 Fulcrum Biometrics, Neurotechnology, 360 Biometrics ... - Albanian Times - February 16th, 2017 [February 16th, 2017]
- Israel and Indiana: Why You're Getting an Invitation to the Holy Land ... - 93.1 WIBC Indianapolis - February 22nd, 2017 [February 22nd, 2017]
- 5th Annual Big Idea Competition Nets Three Winners Colorado ... - Colorado College News - February 23rd, 2017 [February 23rd, 2017]
- 3Q: US Patent Office's Ruling on CRISPR - Bioscience Technology - February 24th, 2017 [February 24th, 2017]
- 7 reasons you must attend WIRED Health 2017 - Wired.co.uk - February 24th, 2017 [February 24th, 2017]
- Edward Boyden - Big Think - February 25th, 2017 [February 25th, 2017]
- What Health Care Can Learn from Wal-Mart - Wall Street Journal (subscription) (blog) - March 4th, 2017 [March 4th, 2017]
- A report released today by RBC Capital Markets about Stryker Corporation (NYSE:SYK) ups the target price to $135.00 - Breaking Finance News - March 4th, 2017 [March 4th, 2017]
- Paralysis patients achieve fastest typing yet with new brain-computer interface - The Brown Daily Herald - March 7th, 2017 [March 7th, 2017]
- How 'brain wearables' can address 21st century needs - IoT Tech News - March 7th, 2017 [March 7th, 2017]
- Stryker's AVAflex Vertebral Balloon System Receives FDA 510(k ... - OrthoSpineNews - March 8th, 2017 [March 8th, 2017]
- Stryker's Spine Division To Feature Novel 3D-Printed Spinal Implants at AAOS Conference - OrthoSpineNews - March 9th, 2017 [March 9th, 2017]
- Stryker's Spine division to exhibit key technologies at AAOS 2017 - Yahoo Finance - March 9th, 2017 [March 9th, 2017]
- Stryker Corporation named one of Fortune Magazine's 100 Best Companies to Work For for seventh consecutive year - Yahoo Finance - March 9th, 2017 [March 9th, 2017]
- How to ensure future brain technologies will help and not harm society - USAPP American Politics and Policy (blog) - March 10th, 2017 [March 10th, 2017]
- Preview: MedX Future of Healthcare conference - The Mancunion - March 11th, 2017 [March 11th, 2017]
- Stryker's Spine division to exhibit key technologies at AAOS 2017 - OrthoSpineNews - March 11th, 2017 [March 11th, 2017]
- Elon Musk Wants to Merge Man and MachineHere's What He'll ... - Observer - April 8th, 2017 [April 8th, 2017]
- Synchron Inc. Secures $10 Million in Series A Financing Round - PR Newswire (press release) - April 8th, 2017 [April 8th, 2017]
- How Neurotechnology Is Helping The San Francisco Giants Train Better - PSFK (subscription) - April 8th, 2017 [April 8th, 2017]
- Positive Media Coverage Very Likely to Affect Stryker (SYK) Share Price - Chaffey Breeze - June 6th, 2017 [June 6th, 2017]
- Shoosmiths advises PD Neurotechnology on 1.34m investment - Scottish Legal News - June 6th, 2017 [June 6th, 2017]
- Shoosmiths advises PD Neurotechnology on 1.34m (EUR) investment - Shoosmiths legal updates (press release) - June 7th, 2017 [June 7th, 2017]
- Comparing Accuray (ARAY) & Stryker (SYK) - The Cerbat Gem - June 9th, 2017 [June 9th, 2017]
- Welch Capital Partners Increased By $3.59 Million Its Eqt (EQT) Position, Stryker (SYK) Sellers Decreased By 3.59 ... - UtahHerald.com - June 10th, 2017 [June 10th, 2017]
- Head to Head Analysis: Accuray (ARAY) and Stryker Corporation (SYK) - Sports Perspectives - June 13th, 2017 [June 13th, 2017]
- Neurotechnology Announces MegaMatcher Accelerator Extreme ... - findBIOMETRICS - June 13th, 2017 [June 13th, 2017]
- Comparing Stryker Corporation (SYK) & Accuray (ARAY) - Markets Daily - June 14th, 2017 [June 14th, 2017]
- Neurotechnology Releases MegaMatcher Accelerator Extreme, the Fastest Biometric Engine in the World - PR Newswire (press release) - June 14th, 2017 [June 14th, 2017]
- Neurotech panel shares successes from first year - Cornell Chronicle - June 14th, 2017 [June 14th, 2017]
- Neurotechnology Researchers Win Kaggle Competition with Deep Neural Network Solution for The Nature ... - PR Newswire (press release) - June 14th, 2017 [June 14th, 2017]
- Neurotechnology Wins Fisheries-Focused Computer Vision Competition - findBIOMETRICS - June 14th, 2017 [June 14th, 2017]
- Helping or Hacking? Engineers, Ethicists Must Work Together on Brain-Computer Interface Technology - Government Technology - June 16th, 2017 [June 16th, 2017]
- Accuray (ARAY) versus Stryker Corporation (SYK) Head-To-Head Review - The Cerbat Gem - June 17th, 2017 [June 17th, 2017]
- The Funded: Justin Kan's latest startup gets backing from more than 100 investors - Silicon Valley Business Journal - June 17th, 2017 [June 17th, 2017]
- New SentiVeillance Server from Neurotechnology Adds Face Recognition and Analytics to Video Management Systems - PR Newswire (press release) - June 20th, 2017 [June 20th, 2017]
- Neurotechnology Announces SentiVeillance Server Facial Recognition Solution - findBIOMETRICS - June 20th, 2017 [June 20th, 2017]
- SentiVeillance Server - Face Recognition and Analytics to Video Management Systems - Officer.com (press release) (registration) (blog) - June 21st, 2017 [June 21st, 2017]
- Neurotechnology Announces MegaMatcher 10 - findBIOMETRICS - June 21st, 2017 [June 21st, 2017]
- Neurotechnology adds face recognition, tracking to video surveillance systems; researchers win competition - Biometric Update - June 22nd, 2017 [June 22nd, 2017]
- Neurotechnology makes a number of updates to the MegaMatcher product line - Biometric Update - June 23rd, 2017 [June 23rd, 2017]
- Neurotechnology Develops 3D Printing Method with Non-Contact Ultrasonic Manipulation Technology - 3DPrint.com - June 26th, 2017 [June 26th, 2017]
- Mind-blowing ultrasonic 'printer' uses lasers and high-frequency sound to assemble electronics - Digital Trends - June 29th, 2017 [June 29th, 2017]
- HIRREM Neurotechnology Better Than Placebo for Insomnia - Sleep Review - July 10th, 2017 [July 10th, 2017]
- DARPA invests further in neurotechnology - SD Times - SDTimes.com - July 14th, 2017 [July 14th, 2017]
- Infinitely Flexible 3D Printing with Ultrasonic Manipulation? - ENGINEERING.com - July 15th, 2017 [July 15th, 2017]
- Insider Activity Stryker Corporation (NYSE:SYK) - Highlight Press - July 16th, 2017 [July 16th, 2017]
- Comparing Uroplasty (UPI) and Stryker Corporation (NYSE:SYK) - The Cerbat Gem - July 17th, 2017 [July 17th, 2017]
- Biomimetic Underwater Robot Program - July 17th, 2017 [July 17th, 2017]
- Preserving the Right to Cognitive Liberty - Scientific American - July 18th, 2017 [July 18th, 2017]
- BRAIN center gathers to ponder future, direction - Arizona State University - July 20th, 2017 [July 20th, 2017]
- Stryker Expands Its Interventional Spine Segment - Market Realist - July 22nd, 2017 [July 22nd, 2017]
- Trivascular Technologies (TRIV) & Stryker Corporation (SYK) Critical Review - Stock Observer - July 26th, 2017 [July 26th, 2017]
- Arshya Vahabzadeh: Innovating at the Intersection of Brain ... - HuffPost - July 27th, 2017 [July 27th, 2017]
- fMRI and EEG May Be Able to Reveal Consciousness in Comatose Patients - Physical Therapy Products - July 29th, 2017 [July 29th, 2017]
- Stryker reports 6.1% Q2 growth, installs 26 Mako systems: 7 things to know - Becker's Orthopedic & Spine - July 29th, 2017 [July 29th, 2017]
- Tufts Hosts Engineering Conference - Tufts Now - July 29th, 2017 [July 29th, 2017]
- Stryker Corporation (NYSE:SYK) and Uroplasty (UPI) Financial Survey - Stock Observer - July 29th, 2017 [July 29th, 2017]
- Elon Musk speaks of being 'bipolar' on Twitter - Mashable - July 31st, 2017 [July 31st, 2017]
- Team Neurotechnology Innovations Translator - July 31st, 2017 [July 31st, 2017]
- Elon Musk opens up about the highs and lows of his life on Twitter - Firstpost - August 1st, 2017 [August 1st, 2017]
- Train your brain at Ky learning centre - Shepparton News - August 2nd, 2017 [August 2nd, 2017]
- Stryker Exceeded Analysts' Sales Estimates in 2Q17 - Market Realist - August 2nd, 2017 [August 2nd, 2017]
- $2.6 million to build versatile genetic toolkit for studying animal ... - Washington University in St. Louis Newsroom - August 3rd, 2017 [August 3rd, 2017]
- National Science Foundation $9M grant will fund neurotech research hub at Cornell - The Ithaca Voice - August 3rd, 2017 [August 3rd, 2017]
- NSF awards Cornell $9M grant for neurotech research hub - The Central New York Business Journal - August 4th, 2017 [August 4th, 2017]
- NSF issues awards to advance a national research infrastructure for neuroscience - National Science Foundation (press release) - August 4th, 2017 [August 4th, 2017]
- $9M Grant Will Create Neurotech Research Hub - Lansing Star - August 4th, 2017 [August 4th, 2017]
- NSF backs photonics-enabled neuroscience networks - Optics.org - August 9th, 2017 [August 9th, 2017]
- Washington University awarded $2.6 million for neurotechnology research - St. Louis Business Journal - August 9th, 2017 [August 9th, 2017]
- fMRI, EEG may detect consciousness in TBI patients - Medical Physics Web (subscription) - August 10th, 2017 [August 10th, 2017]
- Financial Analysis: Stryker Corporation (NYSE:SYK) vs. Uroplasty (UPI) - The Cerbat Gem - August 12th, 2017 [August 12th, 2017]
- In the Future, Humans Will Use Brain to Brain Communication and Download Their Memories If Elon Musk Has His Way - Newsweek - August 13th, 2017 [August 13th, 2017]
- How Elon Musk Plans to Turn Humans Into Robots - Yahoo News - August 14th, 2017 [August 14th, 2017]
- Critical Comparison: Stryker Corporation (SYK) versus Glaukos Corporation (GKOS) - TrueBlueTribune - August 21st, 2017 [August 21st, 2017]
- Early career scientists named Mong Fellows in Cornell Neurotech - Cornell Chronicle - August 21st, 2017 [August 21st, 2017]
- Could this back-pain device end need for opioids? - The Columbus Dispatch - August 21st, 2017 [August 21st, 2017]
- New technologies to diagnose and treat neurological diseases - Medical Xpress - August 22nd, 2017 [August 22nd, 2017]