Lumber Liquidated – $LL down over 20% After 60 Minutes Expose

$LL is down over 20% this morning after finally opening for trade after 1.5 hour halt.  The 60 minutes expose might have the stock at $40, but this formerly $120 stock has been in a free fall for more than a year.  It's recent earnings report did little to turn the tide.

Some headlines/articles on $LL

"In light of Sunday night's 60 Minutes episode featuring Lumber Liquidators Holdings, Inc. ("the Company"), the Company is providing the following statement:

"Lumber Liquidators is a leader in safety, as evidenced by our track record of providing our wide range of products to two million satisfied customers across America.

We comply with applicable regulations set by the California Air Resources Board ("CARB"), which is currently the only regulator of composite core emissions. Although the CARB regulations only apply in California, we adhere to these standards everywhere we do business. Every manufacturer of fiberboard cores used in our products is certified in accordance with CARB regulations. We have documentation to support each step of our production process, including vendor agreements, vendor invoices, CARB certificates, and test results, to serve as further proof that our processes, practices and products are compliant across the board. Independent third-party test results are available on our safety website at

We believe that 60 Minutes used an improper test method in its reporting that is not included in CARB's regulations and does not measure a product according to how it is actually used by consumers. Our laminate floors are completely safe to use as intended. In our attempt to be fair and transparent, we provided significant testing results to 60 Minutes, including the results of the random testing performed on products from each of our laminate suppliers. We also went to great lengths to document issues between the validated test method and that used by 60 Minutes. Our Chairman addressed the differences and our position on the test methodology but 60 Minutes chose not to include it.

After becoming aware of the nature and content of the 60 Minutes story, we immediately reached out to the Chinese suppliers included in the story. The suppliers have confirmed that all products provided to Lumber Liquidators have been and are CARB compliant. The suppliers could not verify the identity of the individuals appearing in the videos. One of the suppliers featured questioned whether the product shown was actually from its factory. We randomly test each of our six laminate suppliers in China using unannounced audits and all products tested are compliant and safe. Again, the results of the third-party testing are on our website.

As 60 Minutes noted, these attacks are driven by a small group of short-selling investors who are working together for the purpose of making money by lowering our stock price. Their motives and methods are wrong and we will fight these false attacks on all fronts.

All of our resources are focused on ensuring our customer understands the truth, our products are 100% safe and our testing is thorough. Also, we are focused on maintaining the customers' trust and addressing any concerns over our long purchase cycle.

We stand by every single plank of wood and laminate we sell all around the country and will continue to deliver the best product at the best price to our growing base of valued customers."


Lumber Liquidators Holdings (LL) shares tumbled in Monday's pre-market session after CBS's "60 Minutes" show that aired Sunday said it found the flooring retailer's Chinese-made laminate flooring contains amounts of toxic formaldehyde that may not meet health and safety standards.

LL was down 21% at $40.88 in recent pre-market trading, in a 52-week range of $47.60 to $110.52. The 52-week low, set in Friday's session, had marked the stock's lowest level since October 2012. If Monday's recent pre-market level is sustained in the regular session, it would be the stock's lowest intraday level since July 2012.

The "60 Minutes" report said the executive director of a nonprofit group called Global Community Monitor teamed up with a prominent environmental attorney bought more than 150 boxes of laminate flooring at stores around California and sent them to three certified labs for a series of tests. They found that "while laminate flooring from Home Depot and Lowes had acceptable levels of formaldehyde, as did Lumber Liquidators American-made laminates, every single sample of Chinese-made laminate flooring from Lumber Liquidators failed to meet California formaldehyde emissions standards," with some close to 20 times above the level allowed to be sold.

The report noted that on its website, Lumber Liquidators promises that all of its flooring "meets or exceeds rigorous emissions standards" and says "we not only comply with laws, we exceed them."



Lumber Liquidators Holdings Inc. (LL) said Monday a "60 Minutes" report alleging that Chinese-made laminated flooring it has installed in many American homes contain higher-than-accepted levels of a known carcinogenic was based on an improper test method. In a filing with the Securities and Exchange Commission responding to the program, the hardwood floor retailer said it is fully compliant with California standards and has documentation to support every step of its production process. "Our laminate floors are completely safe to use as intended," the filing said. Founder and Chairman Tom Sullivan outlined the issues with the "60 Minutes" testing methods, but the program chose not to include it, said the filing. The company was also unable to identify Chinese suppliers who admitted on camera that the product supplied to Lumber Liquidators does not meet California standards. "As 60 Minutes noted, these attacks are driven by a small group of short-selling investors who are working together for the purpose of making money by lowering our stock price," the company said. Shares resumed trading down 24% on heavy volume, after being halted for the regulatory filing to be published.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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