NEW YORK (TheStreet) -- Shares of Lumber Liquidators  (LL) - Get Report are rising, up 4.83% to $34.31 in pre-market trading Thursday, after the company released the slides it intends to use for its business update conference call, scheduled for later this morning.

Lumber Liquidators stands by the safety of its flooring products amid government probes over claims of dangerous levels of formaldehyde, a known carcinogen, Reuters reports. The company said it would offer free indoor air quality testing for qualifying customers.

The company said net sales were down 7.5% and its comparable store net sales were down 12.7% year over year, in the nine days following the "60 Minutes" report from March 1.

Lumber Liquidators said, "At this time, we believe our cash flow from operations, together with existing liquidity sources, will be sufficient to fund our future operations and anticipated capital expenditures for the foreseeable future."

In the broadcast, CBS (CBS) - Get Report said it tested the retailer's floorings in several states for levels of formaldehyde.

CBS reportedly found that out of 31 samples, only one was compliant, according to Reuters.

Since the broadcast, shares of Lumber Liquidators have nearly halved.

Toano, VA-based Lumber Liquidators is a retailer of hardwood flooring in North America, offering a selection of hardwood flooring products. The company and its subsidiaries operate through a network of 318 stores, with 309 located in the U.S. and nine in Canada.

The company sells exotic and domestic hardwood species, engineered hardwood, laminate, vinyl plank, bamboo and cork directly to the consumer.

It also provides a selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives and flooring tools.

Insight from TheStreet's Research Team:

Timothy Collins commented on Lumber Liquidators in a recent post on RealMoney.com. Here is what Collins had to say about the stock:

Yesterday on Real Money Pro, I discussed Lumber Liquidators (LL) and its failure to really put together a solid response from management as of yet. It finally seems a response is forthcoming on Thursday, which has the stock being bought this morning up nearly 13%. I'm not so sure this is not simply short covering or hedging, but no matter, the price today is higher than it was yesterday, for whatever reason.

A very small debate did ensue in the comments section about where to buy this one, with a few fundamental and technical arguments put forth. Granted, the buy argument wasn't a haphazard thesis overall, as it put together both recent fundamental data along with chart patterns, but the issue from my view is that LL is a haphazard stock.

Whether it is a falling knife or a parabolic short squeeze, certain stocks at specific times will lose all touch with recent reality. They begin to move in such a way that it renders traditional valuation methods, or even reality itself, as moot. For instance, how can one rely on the recent fundamentals from LL? I don't believe you can.

If there is any truth to the 60 Minutes report, then the cash on the books will be gone before an investor can even hit the sell button. The lawsuits will pile up quickly and business will cease for the most part in the stores. Even if the story isn't true, one has to expect the company will guide down expectations on Thursday for revenue and earnings, thus changing even the most recent fundamentals. Dozens of lawsuits have been filed, so expect the company to have a rise in legal costs, which will sap some of that cash. Furthermore, with the sheer massive volume in the stock, how can one rely on recent institutional ownership data? Simply put: You cannot.

While it is very possible the company has done nothing wrong and the stock is a bargain here, you can't rely on the past data to draw that conclusion. Instead, you are guessing at what future data will bring and whether the company really does have a tainted product or not. The past fundamentals mean very, very little here, and the same can be said about the charts. There is no real support if the company is guilty. And now the short interest has grown so dramatically that there is no real short-term resistance if the company is innocent.

- Timothy Collins, 'Lumber Liquidators: An Unreality Show,' originally published 3/10/2015 on RealMoney.com.

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Separately, TheStreet Ratings team rates LUMBER LIQUIDATORS HLDGS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate LUMBER LIQUIDATORS HLDGS INC (LL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

You can view the full analysis from the report here: LL Ratings Report