Lumber Liquidators is a life lesson in the hollowness of stock prices as a store of value. How can anyone believe that something this volatile has any value at all? All the value of it lives in the mind of the gambler.
They loved it during the pump to $120. Now at $38, with another 25% lost AGAIN in a single day, lumber liquidators is likely within a few dollars of catching a big bounce to the $65 level. I'd like to see it hit $35 and then buy some December $60 calls. People should be just about giving them away for free by then.
So saith the EW model below.
Monday, March 2, 2015
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