Analyst Comments for Lumber Liquidators Holdings Inc (NYSE:LL)

Anyone who was expecting a good number from Lumber Liquidators Holdings Inc (NYSE:LL) had their heads in the clouds.  It was clear as day that there would be pressure on revenue and earnings given the events that have transpired, and the continued uncertainty surrounding Carb2 compliance and the CPSC investigation weighs heavily on investor sentiment.  The expenses that the company is incurring are putting a lid on earnings much less earnings growth, and that was pretty clear going into this report.

Ultimately, the report did not reveal much in the way of surprises but we continue to believe that management handles the disclosure of information in a juvenile fashion which ultimately can hurt shareholders.  This was the basis for us removing the stock from our formal list when it was over $20.00.  With the overhangs that the company is facing we believe that management needed to be extremely proactive and they were not and that did not please us. 

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However, it is understandable given the exodus of former management and the responsibilities that the new interim CEO suddenly faced that communicating with the investment public was far less important to them than communicating with the regulatory authorities and continuing to operate its business.

Reasonably, we believe that management, although they neglected to communicate directly with Wall Street in a proactive manner, is absolutely communicating and cooperating with all of the regulatory authorities and continuing to take steps to right the ship.

Full LL Report including all analyst comments

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