Lumber Liquidators Holdings Inc (LL) is heating up today, after the company contested disparaging remarks from Whitney Tilson
Lumber Liquidators Holdings Inc (NYSE:LL) has been hit hard in recent months by
concerns over the safety of its flooring. Just yesterday, the stock plunged 15% after Kase Capital's Whitney Tilson
called LL a "great short." Last night, though, a company spokesman responded, saying, "It is unfortunate that Whitney Tilson has elected to create confusion in the marketplace."
Of course, Tilson isn't the only one shorting LL. Over 34% of the stock's float is sold short, or nearly five times its average daily trading levels. Analysts are tilted in a skeptical direction, as well, with 10 of 11 handing out tepid "hold" ratings.
On the other hand, option traders have kept the faith in LL, buying to open calls at a faster rate than puts in recent months. Specifically, across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has amassed a
50-day call/put volume ratio of 1.65 -- ranking above roughly two-thirds of all readings taken in the past year.
These call buyers -- provided the
options weren't purchased by shorts as insurance -- should like what they're seeing today. Lumber Liquidators Holdings Inc (NYSE:LL) has shot 1.5% higher out of the gate at $11.95. However, they remain 31.2% lower on a year-to-date basis, suggesting bears remain in the driver's seat.
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