The results are in and our Real Money twitter followers overwhelmingly believe that Lumber Liquidators (LL) is too toxic too own.
More then two-thirds of respondents voted that Lumber Liquidators' latest CDC-induced setback made it too volatile a stock to own, while the remaining respondents still held on to hope that the company could turn around its fortunes.
Lumber Liquidators shares are experiencing a small bounce on heavy volume in trading today, despite the CDC coming out yesterday and saying that the report it released earlier this month on the health effects from the flooring erred in assessing the health risks from the products. The original report used an incorrect value for ceiling height; as a result, the health risks that were calculated were about three times lower than they should have been, according to the CDC.
The stock has lost more than 77% of its value over the past 12 months due in large part to the CDC's investigation into the company following a report by TV news magazine 60 Minutes.
Read Real Money's take on Lumber Liquidators during its precipitous drop.
The company has attempted to refute allegations that its products contain toxic levels of formaldehyde. But investors seem unconvinced, as do customers based on the company's previous earnings release.
Lumber Liquidators is scheduled to release its quarterly earnings results next week. Analystsat Zacks Investment Research have a consensus forecast of a net loss of $0.23 per share vs. a profit of $0.64 per share a year ago.
@TSTRealMoney the class actions will come pouring in. Gross negligence on their compliance/lack Thereof. They had a very strong biz model¿ BB (@bill_belford) February 23, 2016
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