Investment Strategist: Stay Away From Lumber Liquidators And Any Company With 'Accounting Irregularities'

Serge Berger is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

The Steady Trader Head Trader and Investment Strategist Serge Berger told Benzinga's that he will not be trading Lumber Liquidators Holdings Inc LL because of its "structural issues."

Berger gave credit to Optionetics' George Fontanills, who frequently warned younger traders to "stay the heck away" from stocks with accounting regularities. While traders could certainly play for a quick profit-covering bounce, the stock could just as easily "get clipped" another 10 percent.

"Personally, I wouldn't touch it," Berger said.

Lumber Liquidators stock has declined nearly 79 percent year-to-date following a March "60 Minutes" expose and a series of management changes. Within the past month, the stock was down 27 percent after the company missed earnings.

Much of those declines came on August 6, a day which also saw Stephens' analyst Rick Nelson downgrade the stock to Equal-Weight and slap a $13 price target on it; Previously Nelson held a $35 price target and Overweight rating.

Image credit: Dwight Burdette, Wikimedia