Whitney Tilson’s 28 Page Presentation ‘Why I’m Short Lumber Liquidators’

Lumber Liquidators LL Tesla Whitney Tilson K12 Questcor Pharmaceuticals QCORWhitney Tilson

ValueWalk received the following email from Whitney Tilson regarding his short position in Lumber Liquidators Holdings Inc (NYSE:LL)

The Robin Hood Investors Conference, which ended this afternoon, was fantastic. My brain is bursting with a ton of great long and short investment ideas!


Attached are the slides I presented this morning with my analysis of one of my most recent short positions, Lumber Liquidators (LL), which trigged a 12% drop in the stock today; to download the report by the Environmental Investigation Agency that I cite on page 13 and watch the entire EIA video embedded on page 14, see: http://eia-global.org/campaigns/forests-campaign/liquidating-the-forests).



I’m convinced that a meaningful contributor to the company’s unprecedented margin expansion in the last two years is due to sourcing large quantities of illegally harvested and imported hardwoods. With federal authorities having raided LL’s headquarters two months ago, the company is under intense scrutiny and will have to ensure that its supply chain is pristine. I believe this is likely to be highly disruptive and cause margins to revert back toward historical levels, which is most definitely not priced into this high-flying stock.


Even after today’s drop, I think the stock, which has risen seven-fold in less than two years, has much further to fall, as it still trades at 41x trailing earnings and 21x trailing EBITDA.


If you have comments, insights, or information about Lumber Liquidators, please let me know!

Lumber Liquidators presentation-Whitney Tilson-11-22-13

Lumber Liquidators Presentation-Whitney Tilson-11!22!13 by ValueWalk.com


For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Sheeraz Raza
Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)valuewalk.com

Be the first to comment on "Whitney Tilson’s 28 Page Presentation ‘Why I’m Short Lumber Liquidators’"

Leave a comment

Your email address will not be published.