Home improvement retailer Lumber Liquidators is surging on Tuesday morning after Whitney Tilson of Kase Capital Management announced that his firm had closed its short position in the company. Lumber Liquidators shares are up more than 25% to around $17.50 in pre-market trading.
Tilson said his research indicates that management was not aware that the company was selling flooring with high levels of formaldehyde.
In a post on Seeking Alpha late Monday, Tilson wrote that if Lumber Liquidators did not know it was selling flooring with excessive formaldehyde, “then the company was sloppy and naive, but not evil.”
It's no secret that this year has been a volatile one for the markets. The S&P 500 is down 18% year to date, while the Nasdaq Composite is off by 27% year to date. Meanwhile, the VIX, a key measure of volatility, is up 49% year to date at 24.72. However, it has spiked as Read More
More on Tilson and Lumber Liquidators
Analysts highlight that Lumber Liquidators has been hammered by investors ever since “60 Minutes” reported almost nine months ago that the firm was selling Chinese-made laminate flooring with high levels of formaldehyde.
It turned out that Tilson and his firm had pitched the story 60 Minutes and even and appeared in the segment, all the while establishing a large sh