Lumber Liquidators Spikes After 'Possible' Private Equity Buyout

Lumber Liquidators Holdings Inc (NYSE: LL) shares spiked 6.2 percent in Monday's late afternoon  session as insiders push a bullish case with investors. The stock went up after a tweet from Charles Gasparino at FOX Business Network revealed that the company may be up for sale.

"#BreakingNews as $LL shares tank co insiders pressing bullish case w investors; raising possible sale to PE firm 340pm EDT @FoxBusiness," Gasparino tweeted.

The stock closed at $16.22, down 2.7 percent on the day.

The company's stock price has plummeted nearly 80 percent from its highs of $100 per share to around $17. Last week, shares of Lumber Liquidators rose almost 25 percent on news that Kase Capital Management hedge fund manager Whitney Tilson closed his short position on the stock.

The stock crashed earlier this year after allegations that it had been selling laminate flooring with high levels of formaldehyde. Financially, this has had an affect on the company's quarterly earnings and future revenue growth. The allegations have also hindered its reputation.

The company's stock has fallen 69 percent since March 2.

Goldman Sachs cut Lumber Liquidators from Neutral to Sell last week. Analyst Matthew Fassler believed that the company's fundamentals may recover over time and that its recovery is already priced into current equity valuation.

Image credit: Dwight Burdette, Wikimedia