Lumber Prices Cutting Down Economy And Lumber Liquidators Holdings

The word these days is that the the US economy is back on track and making a nice steady recovery. Tune into any financial media outlet such as CNBC, and all the pundits are talking about this so called "recovery". Housing and construction are a big part of the economy, so I take a look at a stock like Lumber Liquidators Holdings Inc LL as a good gauge.

The shares of Lumber Liquidators Holdings Inc LL have not been painting a rosy picture at all in 2014. In fact the commodity lumber (which is an immense component in homes), is down about 17% year to date. This decline has taken down the stock of Lumber Liquidators Holdings Inc LL by roughly 22%. So where is this economic recovery? If housing was picking up or even growing, one would think that the price of lumber would be headed in the opposite direction and on the rise.

While Lumber Liquidators Holdings Inc LL has been in a steady decline this year, some trader and investors might be thinking about going long here. This is a weak equity in a market that continues to go up, so how will this fare when markets actually pull back? Below I have accompanied a chart and isolated various price levels where this stock could be bought.

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Parm Mann

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