Lumber Liquidators (LL) was destroyed yesterday on a 60 Minutes report. What was interesting is that the report relied not only on the stock’s short seller, Whitney Tilson but two attorneys that are backed by the same short seller.
But here’s the thing.
Where were the victim accounts on the report? There was no feedback from regulators. And the report relied solely on factory workers.
To me, this was simply a bear raid report crafted by short sellers.
I believe today’s bounce off lows is just getting started. It may be up $2.80, but there’s still a big gap to fill.
Consider buying to open a small position in the LL May 2015 42 calls up to $6. And, or consider buying to open the LL May 2015 44 calls up to $5.
The stock is brutally oversold technically.
Ian L. Cooper
Forgotten Profits