O’keefe Stevens Started and Closed its Position in LL Flooring (LL)
O’keefe Stevens Advisory, an investment advisory firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund’s largest position, Nvidia (NVDA), experienced a 200% increase as AI became more widely used. Despite cautious comments from analysts and management, the market, particularly in technology, had an exceptional year. The firm anticipated a lower-than-average return year after analyzing several conference calls with similar themes. Setting a low bar can lead to better-than-expected results. In addition, please check the fund’s top five holdings to know its best picks in 2023.
O’keefe Stevens Advisory featured stocks such as LL Flooring Holdings, Inc. (NYSE:LL) in the fourth quarter 2023 investor letter. Headquartered in Richmond, Virginia, LL Flooring Holdings, Inc. (NYSE:LL) is a multichannel retailer of hard-surface flooring, and hard-flooring enhancements and accessories. On January 26, 2024, LL Flooring Holdings, Inc. (NYSE:LL) stock closed at $2.8800 per share. One-month return of LL Flooring Holdings, Inc. (NYSE:LL) was -26.15%, and its shares lost 50.68% of their value over the last 52 weeks. LL Flooring Holdings, Inc. (NYSE:LL) has a market capitalization of $88.885 million.
O’keefe Stevens Advisory stated the following regarding LL Flooring Holdings, Inc. (NYSE:LL) in its fourth quarter 2023 investor letter:
"LL Flooring Holdings, Inc. (NYSE:LL) – We initiated and closed our position in LL Flooring (LL) during the quarter. This is an unusually short holding period for us, though it was the intention when we initiated the position. LL received an all-cash takeover offer of $5.85 from Live Ventures (LIVE). LL was and continues to be in a precarious position with a troubled balance sheet and a market share donor. The offer acted as a lifeline that we believed management could not deny, as the business is headed for bankruptcy, barring a dramatic rebound in repair and remodel spend. After writing a letter to the board and speaking with Charles Tyson (CEO), management is unwilling to "fire" themselves, regardless of whether it's in the best interest of shareholders. Management went on about how they will weather the downturn and invest in the future, even when there isn't one. On the one hand, we were unlucky to establish the position shortly before the Bleeker Street short report. However, we were able to break even on the trade."
A person standing in a showroom admiring the range of laminate flooring.
LL Flooring Holdings, Inc. (NYSE:LL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held LL Flooring Holdings, Inc. (NYSE:LL) at the end of third quarter which was 12 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
