Something’s Gotta Give
As we expected, last Friday, The United States International Trade Commission (USITC) determined that there is a reasonable indication that U.S. industry is materially injured by reason of imports of Multilayered Wood Flooring (MLWF) from China that are allegedly subsidized and sold in the United States at less than fair value.
And yet “the street” has not put two and two together, as a simple news search on various financial websites makes no mention of this decision as it relates to Lumber Liquidators (LL). We continue to believe that this represents a material risk to shareholders, as we discussed in our initial post on the company and recommend ignoring any commentary suggesting otherwise, especially coming from a small, wooden boy as he is likely to be constructed from MLWF.
Disclosure: At the time of publication, the author was short Lumber Liquidators (LL), although positions may change at any time.