Lumber Liquidators (LL)

Recession-tested stock. Long term growth with the recovery of US housing market.

increasing sales numbers will boost the stock higher!

This account tracks the fast-growing shakers and movers and some of the riskier stocks on my watch list.

One company that looks set to stir up a moribund industry in an early growth phase.

I love stumbling upon a company like this and seeing two stars. I will happily snatch up these shares from fearful sellers. I have researched this one for many hours and feel extremely optimistic about it. This company fits every criteria of a rule breaker, and also fits many of Peter Lynch's criteria. It definitely fits all my criteria. Boring, "no-frills" as they say in their annual report, solid financial position, emphasis on cost containment, solid growth prospects. I saw an advertisement and these stores look like shacks . . . Where do I sign up? It will be extremely difficult for Home Depot and Lowes to compete with a company like this without significant effort and capital investment. As a side note, LL is not even interested in competing with these dinosaur home centers. These stores only need 5 people to run soundly and begin seeing profits after one quarter. My best friend was a department manager at Home Depot, and I can assure you that they are not running anywhere near that lean. Tom Sullivan is no businessman off wall street. He looks like an average guy (which he obviously is not) with significant experience who has built this company from the ground up. I wish I had a wheelbarrow of cash to dump into this one. I like also that they are currently "over-valued". I do not care what happens to this one in the short term. If you don't want to water your weeds, I will water them for you. I will be buying heavily on this one. Cheers to the rule breaker team. If I knew any of you, I would buy you all a drink. Maybe it would be a night out on me. Thanks!

I am starting to watch this with lots of curiosity. This thing could really take off -- low start up costs, lots of growth in store. I believe that all of the people buying first time fixer-upper-once-forclosed homes will need to do some upgrades over the next 12 months. looks good to me and the p/e is still fairly modest for a hot growth company in this boring part of the market.

I just canceled my rule breaker's subscription, but before I did I received the last letter that had LL as a pick. I gotta say, it jumped off the page because I've shopped their so many times for my own place with great experiences.

It turns my stomach to see that the price jump 3 fold and now all of a sudden I decide to give it the thumbs up, but I look closer and it's still fairly valued. It's trading just over book, they've only opened 170 stores or so and have plans to open 30-40 per year for years to come. Each store does 3 or 4 million a year at 7 or 8% profit. Give this store a couple of years (maybe 5?) and they'll have 300 stores doing 4M each at 7% is 84M in net income with a 15 PE and you're looking at 1.25B market cap in 5 years.

Given the 3 fold run up in the last 6 months we're bound to see considerable price set backs, but it's CAPS so what the hey, I can wait it out.

Housing is going tofly in next 16 months

Very stable with great cash flow

The insiders will be liquidating the stock if they don't liquidate the lumber quicker.

Home is going to become a whole lot humbler in coming years than it has been over the past couple of decades, and when improvements are made, they won't be in cosmetics like flooring.

LL is trading not too far off its one-year high and has a hefty PE by historic standards. If you're long and in the money, you could cash out here and/or invest some of your money in puts and make more money going down.

Where has al the Home Depot traffic gone? A large part of it has been a casualty of the real estate crash. However, another portion has switched to the even lower cost LL in these hard times.

Expect LL to get hit less than the larger chains, and pick up some market share along the way. They should be well positioned when the economy turns around.

Niche retailer with no competition.

Great Company

this hardwood flooring retailer has great store economics, and is growing share and generating free cash flow in the toughest consumer environment since 1982. Very competitive positioning is paying off now, and will only do better when the consumer situation stabilizes in late 2009/2010.
Beats HD and LOW and independents on price, kills them in selection, and beats HD/LOW on service hands down.

I was attracted by the most recent earnings statement, and then the story improved. There are domestic expansion plans, foreign expansion plans, the product line is solid for a niche company, and if LL keeps cutting into Lowe's and Home Depot's market share, it may become a takeover target. I also like the increased advertising exposure that I've noticed with NASCAR, NPR and other venues. I do own this stock.

great growth potential.

Upcoming category killer?

With the downturn in the new home sales and the overall housing market in the toilet, most people are opting to stay in and remodel their homes hoing for that eventual rebound in the housing market. Almost any solid company involved in the DIY remodeling business is likely to be a winner, but LL being new to the investing market and their low overheads and methods of distribution is probably a good invesment.