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by dragontamer 3346 days ago
The Lumber Liquidators short-seller is quite a famous example of this strategy being executed.

Before writing his blog-post, he short-sold a bunch of Lumber Liquidator stock and made tons of money during the fallout.

1 comments

Martin Shkreli claims to have made a lot of money by shorting pharma companies ahead of their FDA results - he would read their studies and make reasonably accurate predictions as to the outcome.
Shkrelli has shuttered two hedge funds (Elea Capital Management & MSMB Capital Management) when he was unable to cover shorts and put options when the stock price moved away from him. He is also currently awaiting trial for securities fraud. So I would take his comments with a grain of salt.
This is why I said "claims". He no doubt failed at some of his shorts. On a livestream he said he made all the money he still has on his companies, not trading. The strategy is still relevant to the discussion, though.