Just when you thought it was safe to buy the dip and pile into this "value" stock, Lumber Liquidators does it again. On a conference call this morning, and hot on the heels of Valeant doing the same, the embattled firm just removed guidance for 2016 (due to "too much uncertainty" and having discovered "material weakness" in FY15 financials). The stock is re-crashing over 8% in the pre-market, to its lowest since March 2009.
Headlines from the call:
- *LUMBER LIQUIDATORS SAYS CAN'T PROVIDE 2016 OUTLOOK
- *LUMBER LIQUIDATORS: TOO MUCH UNCERTAINTY TO PROVIDE FORECAST
- *LUMBER LIQUIDATORS IDENTIFIED MATERIAL WEAKNESS FY15 FINANCIALS
- *LUMBER LIQUIDATORS SAYS BORROWED $10M IN 1Q TO BUY INVENTORY
- *LUMBER LIQUIDATORS DIDN'T MAINTAIN EFFECTIVE INTERNAL CONTROL
- *LUMBER LIQUIDATORS CUT PRICES BY 6% IN 2015
Cutting the stock in half in a week…
But – despite all this SNAFU – the bonuses are safe, have no fear:
- *LL ENTERED EXEC EMPLOYMENT PACT W/ CEO PRESLEY FEB. 23
- *LL PRESLEY ELIGIBLE FOR ANNUAL BONUS UP TO 100% OF BASE SALARY
- *LL: COO KNOWLES TO GET BASE SALARY $525,000
And additionally, the return of Valeant's CEO has done nothing for the stock as it also removed guidance:
- *VALEANT WITHDRAWS PRIOR FINANCIAL GUIDANCE; RESCHEDULES 4Q CALL
Resulting in a similar trumble…
via Zero Hedge http://ift.tt/1VMRO1x Tyler Durden