Famous Dave's of America, Inc.
Thesis
Famous Dave's was shorted due to excessive market optimism and a struggling brand with a history of declining operating income. Despite the involvement of activist investors and share repurchases, the valuation became too high relative to the company's performance, prompting a short position.
Did it work?
inconclusive
confidence: low
The short thesis rests on Famous Dave's valuation being too high relative to deteriorating operating performance, but no price performance data is available and the timing of the pitch is unknown. Without knowing whether the stock declined, the valuation corrected, or the fundamental deterioration continued, there is no way to confirm or refute the thesis. The verdict must remain open pending actual price or fundamental outcomes.