Lumber Liquidators Spikes After 'Possible' Private Equity Buyout Reported

Lumber Liquidators Holdings Inc

shares spiked 6.2 percent on Monday's late afternoon trading session as insiders push a bullish case with investors. The stock went up after a tweet from Charles Gasparino at FOX Business Network revealed that the company may be up for sale. "#BreakingNews as $LL shares tank co insiders pressing bullish case w investors; raising possible sale to PE firm 340pm EDT @FoxBusiness," Gasparino tweeted. The company's stock price has plummeted nearly 80 percent from its highs of $100 per share to around $17. Last week, shares of Lumber Liquidators rose almost 25 percent on news that Kase Capital Management hedge fund manager Whitney Tilson closed his short position on the stock. Lumber Liquidators had a very high trading valuation and also has an allegation out that it has been selling laminate flooring with high levels of formaldehyde. Lumber Liquidators has allegation could pose a potential health risk which violates California's CARB Phase 2 regulations. Financially, this has had an affect on the company's quarterly earnings and future revenue growth. The allegations have also hindered its reputation. Lumber Liquidators Holdings shared have been down over the last three trading days. The company's stock has fallen 35.99 percent since May 18, 2015 and is downtrending. Goldman Sachs cut Lumber Liquidators from Neutral to Sell

. Analyst Matthew Fassler believed that the company's fundamentals may recover over time and that its recovery is already priced into current equity valuation.