Trade-Ideas LLC identified Lumber Liquidators Holdings ( LL) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Lumber Liquidators Holdings as such a stock due to the following factors:

  • LL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.2 million.
  • LL has traded 63,420 shares today.
  • LL is up 3.2% today.
  • LL was down 7.1% yesterday.

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More details on LL:

Lumber Liquidators Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories. Currently there are no analysts that rate Lumber Liquidators Holdings a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Lumber Liquidators Holdings has been 2.1 million shares per day over the past 30 days. Lumber Liquidators has a market cap of $335.6 million and is part of the services sector and retail industry. The stock has a beta of 2.15 and a short float of 40.7% with 5.17 days to cover. Shares are down 33.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lumber Liquidators Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 214.3% when compared to the same quarter one year ago, falling from $17.35 million to -$19.83 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, LUMBER LIQUIDATORS HLDGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LUMBER LIQUIDATORS HLDGS INC is currently lower than what is desirable, coming in at 32.42%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.44% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$24.78 million or 200.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 50.94%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 214.06% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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