Contestants Turn in a Terrific Short Selling Performance
I am impressed. Contestants in my annual Short Sellers Don't Have Horns competition scored terrific results in the 20242025 running of the contest.
Short selling is a technique to profit from a stock's decline. The goal in the contest is to pick a stock that will collapse. Of 16 contestants in the latest running, 12 achieved a gain in other words, the price of their targeted stocks dropped. Nine achieved a gain of 50% or more.
The four people who had losses weren't down by much. Three of them picked Trump Media & Technology Group Co. 
DJT as the stock most likely to flop. It didn't, rising 5.7%. Two people tied for first as the stock they picked Mullen Automotive Inc. (MULN) went bankrupt and the stock price hit zero. For a short seller, that's a 100% gain.
Sam Strikes Again
One winner was the stock analyst known in this column only as Sam because he doesn't have permission from his company to be identified by name. Sam took first place in the 20222023 contest and second place last year. Now he's back in first. A recent college graduate when he first entered, Sam became an analyst for an East Coast firm and is now starting a new job at a New York hedge fund.
As shorts, he currently likes in-vogue consumer brands that are faddish. For example: Pop Mart International Group (PMRTY): Maker of Labubu dolls, valued at $46 billion (49 earnings, 15 revenue). Sanrio Co. (SNROY): Producer and licensor of Hello Kitty merchandise. Sam believes the 50th anniversary sales bump was temporary; the stock trades at 37 earnings.
Green Victory
The other first-place winner was David Green of Newmarket, Ontario, Canada, who cited the constant stream of reverse splits as a danger sign at Mullen Automotive. He was right. Green is chief executive of Greenmar Energy Inc. I couldn't reach him for an interview. MacDonald Second
Runner up Keith MacDonald
Keith MacDonald, a retired travel agent in Williamsburg, Virginia, took second place with a 99.7% gain on his short of T2 Biosystems (TTOO).
He picked T2 because of a 2023 reverse split, declining revenue, and a weak balance sheet. Asked about today's market, he says: I believe the entire market is very overvalued.
DiFlorio Third
James DiFlorio of Allentown, Pennsylvania, a forensic scientist with the Pennsylvania State Police, took third place with a 98.7% gain. His short was Reshape Lifesciences (NASDAQ:RSLS), a medical device company focused on weight loss. He was skeptical of its Lap-Band and Reshape Vest products, and the firm had also done a reverse split.
Enter the 23rd Annual Contest
Everyone is invited to enter my 23rd annual Short Sellers Don't Have Horns contest.
Rules:
Pick a U.S.-traded stock you think will decline sharply from October 3, 2025 to September 11, 2026. No actual short selling required, though you may if you wish.
First prize: something related to the word short. (Past prizes included Bobby Short music, a strawberry shortcake, and a book of short stories.)
Second and third place: glory, but no prize.
To enter, please include:
- Your name, home city, and occupation
- Your phone number (including weekend number)
- Name and ticker symbol of the stock you expect to fall
- A brief statement of your reasoning
Entries may be emailed to: jdorfman@dorfmanvalue.com Or mailed to: John Dorfman, Dorfman Value Investments, Suite 1900, 101 Federal Street, Boston, MA 02110.
Deadline: Postmarked or time-stamped by midnight on Sunday, October 5.
About the Author:
John Dorfman is chairman of Dorfman Value Investments in Boston. He can be reached at jdorfman@dorfmanvalue.com
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