Whitney Tilson warned us about Lumber Liquidators months ago in this troubling presentation
The report found that the company - North America's largest speciality retailer of hardwood flooring - appears to be selling Chinese-made laminate flooring with levels of formaldehyde that exceeds what's allowed under California law.
In an email, Tilson wrote that after the "60 Minutes" investigation, he's even more certain that the stock is a "zero."
"In 16 years of professional money management, I've seen hundreds of companies do all sorts of bad things to get their stock prices up," Tilson told Cooper. "But this has got to be the worst."
Tilson first decided to short Lumber Liquidators stock back in 2013 when he saw the company's profit margins explode, largely due to what appeared to be cheaper cost of goods.
"When you see a commodity business suddenly double its profit margins, that raises red flags," Tilson said. "It's almost unprecedented for a company."
About six months later, Tilson was tipped off that the company was likely purchasing formaldehyde-tainted laminated flooring in China.
Tilson laid it all out months ago in the following presentations, which he was kind enough to share with Business Insider.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- In second consecutive week of decline, forex kitty drops $2.28 bn to $640.33 bn
- SBI Life Q4 profit rises 4% to ₹811 crore
- IMD predicts severe heatwave conditions over East, South Peninsular India for next five days
- COVID lockdown-related school disruptions will continue to worsen students’ exam results into the 2030s: study
- India legend Yuvraj Singh named ICC Men's T20 World Cup 2024 ambassador
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market