I'll have to give credit that shorting at $16 was a money maker, but it's playing with fire. If there is ANY positive catalyst it will be hard to exit here. There are so many shares sold short, this could spike upwards incredibly quickly.
The thing I find unbelievable is how many shares are sold short now. It's over 40% of the float which is just crazy!
When you're a little guy, everybody knows the real story way before you do, so you're better off not trying to trade with every new headline and daily price action because you're always going to be a day late and a dollar short. It will take patience and and positive numbers to really create a sustainable positive outcome for longs.
Plenty of silence from the sell side. At least longs had the stones to gripe and complain on the way down. haha
Exactly, there hasn't been any proof that that LL violated CARB, and there isn't a national standard, so consumers outside of the state of California cannot sue for CARB compliance.
LL is, at worst, going to be dealing with an issue with a 10% product line in a 20% market (California), so we're talking about a potential violation of standards on 2% of LL total sales. Additionally, the reprimand that short-sellers have been waiting on for more than half a year hasn't surfaced.
Enjoy your short position.
I wouldn't assume it's a foregone conclusion LL won't be fined, I still think that's a possibility although I'm long the stock.
I think his point is that if there was actually a violation that there would have been an actual charge filed 3-4 months ago and there still hasn't been one.
Well, LL managed to creep slightly higher today as the broad index took some losses. LL slowly working it's way out of this slump. If LL can even get close to a break-even in Q3 and/or show any significant improvement sequentially it is going to set the tone that the bottom line will eventually recover.
It's surprising to see continued interest in going short here...
I really doubt LL will be reprimanded. Even CARB's own standard says that deconstructive testing of non-homogenous products can be subject to judgement calls regarding the safety regardless of the what the machine reads.
It has been the better part of a year and CARB hasn't issued a fine or stated that there was an actual safety violation. People calling for this to go under $10 are really grasping for straws.
Another thing to mention is that CARB compliance was only an issue for a product that accounted for just 10% of sales in a 20% market, meaning that CARB compliance accusations were only leveled at 2% of total sales, and every day that passes decreases the likelihood that there was actually a violation of any laws.
A fellow would have to be really foolish to be initiating any new short position now. The price is incredibly low on these shares right now. The total market cap is just ridiculously low.
Don't forget that it hasn't been proven that LL violated any CARB regulations, at least up to this point.
Everybody knows this quarter will probably suck. If it's any better than last quarter it will be seen as an improvement though.
A government reprimand hasn't happened yet, so the only thing short sellers have to look for is a weak trend in revenues and profitability. Any indicator that sales/earnings are improving will have some shorts heading for the exits.
Great Idea! Start a campfire and keep warm... oh wait... campfires actually produce formaldehyde, so you may not want to do that.
Reports out today that July construction increased 70 basis points. It is now at the highest level in 7 years. Although this isn't directly related, it shouldn't be anything but positive for LL.
If that's your plan you might as well put a sell order at $100 and not have to watch the price action all the time.
The EPA said they are not pursuing any action related to laminate flooring at this time. CARB hasn't come to any conclusions after 6 months, so I'm really beginning to question whether the reprimand that short-sellers wanted will ever arrive. I would assume that LL would have nothing barring them from selling that laminate outside of California.
Agreed. If the price dropped to 5 it would probably only happen if a REAL threat to the business occurred. Right now it's cheap because of fear mongering and half-truths.
The problem is that LL hasn't been found guilty of ANY safety violations. Why are they going to get "fines, litigation, etc."? Right now all there has been is a 60 minutes show, and even their own test labs have denounced the tests validity for determining CARB compliance.
Short sellers have been hanging their hat for several months on a government ruling that has failed to materialize. If LL is vindicated this goes back to $40 within a matter of months.
Haha, your BS is simply laughable. You were calling everybody long a fool yesterday.
I'm getting a laugh out of the incessant bashers that have disappeared. They are probably too busy running for cover on their e-trade accounts right now to talk. Haha