The Panic-Proof Portfolio (Stockchase Research)
Lumber Liquidators Holdings, Inc.
LL-N
PAST TOP PICK
Jul 15, 2021
(A Top Pick May 06/21, Down 21.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LL has triggered its stop at $19. We recommend covering the position. We will look for better opportunities elsewhere.
Stockchase Research Editor: Michael O'Reilly This manufacturer of hardwood flooring material will benefit from homeowner renovations going forward. As new house builds average $36,000 US higher, due to soaring plywood and lumber costs, home renovation demand will continue to grow. Recently reported EPS of $1.06 beat expectations of $0.50. Comparable store sales were up over 10%. It trades at under 15x earnings, compared to peers at 36x. We would buy this with a stop loss at $19. We believe a technical breakout will propel this towards a higher objective of $30 -- potential upside of 25%. Yield 0% (Analysts’ price target is $26.67)
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