Wedbush: Lumber Liquidators Is 'Not Out Of The Woods,' But Bankruptcy Unlikely
Speaking to Benzinga, Wedbush Analyst Seth Basham discussed Lumber Liquidators Holdings Inc (NYSE: LL) ahead of its Thursday conference call.
Basham said "expectations are that [the company is] going to hold the line on their point of view, that their products are safe and comply with CARB."
"There's a lot of controversy and debate as to which testing methods are correct," according to Basham, and he added that it was possible "the health risks from these products are being over-blown by some of the short-seller's reports."
"Nonetheless, if the products are not compliant then there could be significant consumer backlash and some potential for legal remedies," according to the analyst.
Basham concluded that Lumber Liquidators was "not out of the woods by any means" but he did not think the company was going bankrupt.
Lumber Liquidators Holdings Inc recently traded at $32.71, up 10.58 percent.
Kevin Riley and Brianna Valleskey contributed to this report.
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