Lumber Liquidators (LL)

alvojiggy1 (< 20) Submitted: 6/15/2008 11:22:05 AM : Start Price: $14.27 LL Score: +66.80

Lumber Liquidators Inc. deals in the sales of hardwood flooring. They currently have 116 stores in 43 states, which allows for growth since the market isn't saturated as of yet. Year over year sales have been steadily increasing. However, it's EPS is tending to chill over the past two years, probably due to the housing slump. Their sales are probably heavily reliant on housing renovations. If they expand their product line away from strictly hardwood flooring as many companies do with very focused product lines and good balance sheets, they should be able to harness more growth. Goldman Sachs recently decreased its expectations for company growth and therefore there was a slight pullback in the share price. I believe the share price will snap back sharply in the next month as many of the piggy-backing doubters have been flushed from stock ownership.