World Acceptance Corp.

WRLD pitch short Patrick Stadelhofer, CFA

Thesis

Short World Acceptance Corp. (NASDAQ: WRLD) with a target price of $46, a 48% short upside from its current level. The core business is deteriorating with increasing delinquency rates and regulatory pressures that could further erode interest income. Additionally, management disruptions and a high level of insider selling raise concerns about the company's future performance.

Did it work?

worked confidence: high

The short thesis on World Acceptance Corp. has played out significantly, with the stock price declining by 116.4% since the pitch. The concerns regarding deteriorating business fundamentals, increasing delinquency rates, and management issues have been validated by the substantial drop in share price, well below the target price of $46. This indicates that the factors outlined in the thesis have had a decisive impact on the company's performance.

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