Summary
Lumber Liquidators' stock has declined 60% year to date.
Institutional investors have been buying up shares.
Perfect conditions for a huge short squeeze or takeover.
Fundamentals are strong and have been improving.
Renovation andremodeling sector is predicted to grow ~7% in 2019.
Lumber Liquidators (LL) stock currently trades at $11.18. It has declined 64% year to date and is off 73% from its 2017 high of $42 per share. The fall has been sharp and almost completely without warrant. The shares fell 15% last week alone (first week of December) and now trade at a 10 year low. To add more perspective on the magnitude of the recent decline, the company IPO'd in 2007 at $11 per share. So basically the market is valuing the company at the same price as 11 years ago. It's important to note that when the company went public, it had only 111 stores and yearly sales of $332 million. It currently has over 409 stores and 2018 revenue should be over $1.08 billion, the highest in the company's history.
