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Housing Pickup Offers Upside For Lumber Liquidators
Posted February 2, 2012
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By Todd Campbell
There's a debate raging around housing stocks over whether we've turned the corner. My recent arcticle highlight improving end-of-year housing data, significant short interest and rapid share price appreciation over the past few months prompted 20 comments on both sides of the argument.
Personally, I think we've seen the low in the housing-related stocks. I don't expect shares of companies, including Lumber Liquidators (LL), the debt-free flooring discounter, to get back to last year's lows. Instead, I think we'll continue to inch our way back to a healthier housing market.
If I'm correct, stocks like Lumber Liquidators offer investors significant upside. The company continues to build new stores and enter new markets. And, as cost conscious housing investors seek to add value to their newly acquired investment properties, discount flooring makes a compelling case.
Big box stores like Home Depot (HD) and Lowes (LOW) are already too large to have new store opening move the revenue needle substantially. But Lumber Liquidators, with plans to increase store count by 15% annually, and 33 new stores built in the first nine months of 2011, will see significant sales growth. READ FULL ARTICLE HERE
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