Lumber Liquidators: Guidance Should Scare Us All
In The Money Stocks | Jul 11, 2014 12:36AM ET
Lumber Liquidators Holdings Inc (NYSE:LL) reported ugly guidance yesterday after the market closed. The stock is taking a major pounding, trading at $55.68, -14.74 (-20.93%). Considering this company is right in the middle of the home improvement industry, we should all be very scared of what it means for the broader economy. Lumber Liquidators Holdings guidance had been expected to be growth of 6-7%. Instead, they guided to a loss of 6-7%. This is a huge change from expectations and analysts are trying to figure out if it is a broader economic signal. Home Depot and Lowes are taking hits today as well as the general consensus is this is not company specific.
The Federal Reserve has stated that they will end quantitative easing in October 2014. With signals like this, investors need to start getting very nervous about holding large long positions in the market. More earnings to come in the next few weeks should tell more.
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