Whitney Tilson sends Lumber Liquidators shares down 15% (3/8/2016)

*increased cancer risk from sold wooden floors.

Harbor Investment Conference Presentation Highlights (PDF):

“Very simply, I have new information that leads me to believe that the odds of very bad outcomes for Lumber Liquidators and its stock have risen materially based on new information in six areas:

1. Widespread media coverage of the CDC’s error and increased cancer risk appears to be having a severe impact on the business

2. The cancer risk is likely significantly greater than even the CDC’s revised estimate, which could result in further damaging publicity and increased liabilities

3. A “Prop 65” trial has just begun that LL is likely to lose, resulting in further adverse publicity

4. Likelihood of even larger legal and regulatory liabilities

5. Operating performance of the business in Q4 was much worse than I expected –and I think meaningful improvement is unlikely for quite some time (if ever)

6. Lack of confidence in company leadership”

Some pictures can be seen here (https://www.facebook.com/groups/SeekingValue/)

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