Lumber Liquidators (LL) has gone through a tremendously volatile period in the past three years as I'm not sure 'roller coaster' even adequately describes the action. I've been very bearish for a long time on LL as its fundamentals deteriorated massively but have since started to recover. The share price, however, has rocketed higher to nearly $40 on virtually no news. The second quarter report was the latest catalyst for the moonshot higher and while things are unequivocally getting better, the sheer rapidity with which this thing has moved higher gives me pause.
Before I go any further, I fully acknowledge that the last time I expressed a position on LL it was bearish at less than half the stock's current value. And no, I wasn't shorting it this whole time. But I'll own up to missing the boat on the rally because, well, it's insane. Apart from that, I'm a big boy and I can take my lumps; I'll admit when I'm wrong and I was wrong on this one last time around. That's enough crying in spilled milk; what do we do with the stock now?
