On March 3, 2015, we proposed the following:
“The coincidence of Lumber Liquidator (LL) declining significantly at the same time as the futures price of lumber (as traded on the Chicago Mercantile Exchange) seems difficult to ignore. Investors should take note of the fact that in three prior periods indicated in blue, LL has lost a minimum of –35% and as much as –53% when the price of lumber declined –33% or more.”
Since March 2015, the overall reality is that Lumber Liquidator and the futures price of lumber have more than a coincidence. For that reason, those with a high tolerance for risk and loss, we believe that critical examination of Lumber Liquidator is necessary at this time.
