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Paddy Power (PAP) €12.33

Our short on the bookmaker has played out exceptionally well, netting a 21% return in just four weeks. We said sell at €15.60 on 21 August, suggesting that a betting odds price war would hurt margins and Paddy may follow rival operator Ladbrokes (LAD) with a poor Irish performance. A week later, Paddy issued a profit warning, blaming unfavourable sporting results and a weaker economy. The market slump earlier this week pushed the stock down further. Use this opportunity to close out the short position and bank that tidy profit.