Best Word To Describe Trading Action In Lumber Liquidators? Timber...
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Lumber Liquidators Holdings Inc (NYSE: LL) shares were trading lower by $4.61 (14 percent) at $28.71 in Monday's session. It has now lost over half its value since reaching $69.99 eight trading sessions ago.
Despite being defended by Goldman Sachs last Thursday, it has shed $5.00 since that day. The firm's three reasons to like the issue have been overshadowed by the "poor publicity on LL's business." As of Thursday, the firm has not seen proof of dangers to consumers.
On the other hand, Whitney Tilson has added "materially" to his short position and raised his short stake to 3.8 percent. Tilson has stated he has no intention of ever covering his position and will let the shares expire at 0, when and if the company files for bankruptcy.
After a lower open, it could not reach Friday's close ($33.32), only reaching $33.10 before another round of sellers bombarded the issue. So far, it has reached $28.26 and after a brief rebound to $29.80 it is now back under $29.00 and migrating towards the lows of the day.
It is trading at levels not seen since June 2012, when it bottomed at $26.52.
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