Lumber Liquidators Holdings Inc (NYSE:LL) and an imminent CPSC Decision
The following is a note issued to clients of Stock Traders Daily pertaining to the early move in shares of Lumber Liquidators Holdings Inc (NYSE:LL) on Thursday:
LL is bidding up strongly on no news this AM.
Either this is a big short covering, or we are on the verge of some news.
As you know if you have been following my LL comments, the CPSC is going to rule on LL hardwood flooring and decide whether or not to issue a recall imminently. This is either going to be a huge weight lifted off of LL or it could be disastrous.
I have assessed the situation and my determination is that the CPSC is NOT likely to issue a recall.
I am not sure if today's action has anything to do with the CPSC preparing a decision.
What i know is that LL is up solidly on no apparent news and after a dismal EPS result. Note that the Market Cap is about 1/3 of Revenue, so the stock is way undervalued, so if the monkey gets lifted I'm looking for $20 ish.
We should own LL nearer to $11 already based on my Strong Buy Recommendations.
I am not changing my tune.