NEW YORK (TheStreet) - Lumber Liquidators (LL) - Get Report stock is plummeting by 11.20% to $12.29 on heavy volume in afternoon trading on Tuesday, after short-seller Whitney Tilson said he has shorted the stock again.

The hardwood flooring retailer has a 50-50 chance of going bankrupt, Tilson said at the Harbor Investment Conference, MarketWatch reports.

Tilson anticipates "very bad outcomes" for Lumber Liquidators after the CDC noted last month that cancer risk from the wood flooring was higher than expected.

He previously shorted the stock in late 2013, but covered that position this past December.

At first, Tilson thought the company's management was "reckless" and "truly insane" for allegedly selling China-sourced laminated wood flooring with dangerous levels of cancer-causing agent, but he later realized that management was likely unaware that the laminate had high levels of formaldehyde, MarketWatch adds.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.

Lumber Liquidators's weaknesses include its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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