Good for you. Reality is reality. They did a bad job managing this situation so far and it shows. This could have been done so much better. Legal advice is good but showing some courage is even better. So far, I've seen defensiveness, reacting, and then radio silence as I'm sure they told Sullivan to shut up as he was making things worse. He needs to show humility as his strength. Say, I'm personally behind this company and I'm buying shares. Say, I'm reinvesting in this. Say, something g positive instead of focusing the bad "short sellers".
He got lost I'd the emotion of it
Radio silence in this situation is exactly what they've been told. However, this time it's a losing strategy.
Sullivan was terrible in his defense on 60 Minutes as he said they wouldn't "save a buck" by cutting corners with safety. Then nothing was done or at least announced as being done to ensure that in China.
Second, he never offered to repurchase any shares nor did any key staff. Still an opprtunity there.
Third, they never announced they were sending out samples for testing. They waited to partner / cooperate with the Feds.
lL is reactive not proactive. Some stupid PR firm is telling them to stay quiet and keep the margins in China. Seriously poor decisions up to this point.
I'd personally buy them today if I could and fire the current "outside help"
That would help the situation. Seems like they are looking for some answers right now. How about that PR today?
Thank you for the clarification, that is significant.
As for the Chinese laminate, it does not imply guilt of you explain it well. There was an opportunity live on CNBC or via a press release to state that Chinese laminate would be discontinued. The explanation would be for the sake of public trust not any real health risk. Leave it at that. Doesn't mean LL believes there is something wrong. To stay the course and be "damn right" about something shows stubbornness and a lack to actually do what is right. Why die on this hill?
LL os killing their own stock price at this point on the way they've handled the PR. I'd love to go help them for a year and fix this PR mess
They performed the test incorrectly. Do your homework. CBS and 60 Minutes really didn't get this story well. Look at every wood product from Lazy Boy to Sears to laminate flooring. It goes on and on. Why pick on LL? That's the question. Easy target I guess. But seriously, why LL??
No debt. Mostly American made products. Built in the US. Who's behind this? That's the bigger question. There's the real 60 Minutes story. Find out who's behind all of this and why.
I also don't understand why it hasn't wen bought out. LL management handled this so poorly. Easily could have said no more Chinese Laminate, free air tests, money back guarantee, and sued CBS for Defamation and Liable. The CEO comes off too defensive. They need a leader to help navigate their brand. Solid numbers next week with decreased margins due to deeper discounts to attract customers.
LL back to mid 40s.
Why not offer $55/shr and help them? Make a billion in 2-3 years and call it a day? If I had the cash, I'd buy them out tomorrow before this bounces back. Firms must be too worried about federal agencies testing. Worst case scenario there are new regulations and LL has a couple too high. Best case scenario there are new regulations and LL has a couple over the limit.
Who's goi for be the hero for to help them? You'd look like the all star team for years to come
45 by next Friday
50 is a possibility as earnings will be better than expected. Margins will decrease based on promotions to get customers in the door not die so much to Chinese laminate.
We will see a 10-15% climb next Wednesday
Above 35 is possible todsy
LL is easily $44-46 range by next week
Short squeeze will also help. Watch for some sudden pops the next 4 days of trading
Oil and LL seem to be the places to invest right now
Bought more at 33.65 and more calls again
Earnings April 29 will help as well