Three Questions for Lumber Liquidators Holdings Inc (LL)

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If you recall, just three weeks ago Lumber Liquidators Holdings Inc (NYSE:LL) fell 11% after one author (who also happened to hold a short position in the stock), leveled accusations against the company of selling wood flooring from China that contains dangerous (and illegal) levels of formaldehyde.

Of course, it remains to be seen whether those claims have any validity or if they’ll truly have any long-standing negative effects on Lumber Liquidators’ image or profitability, but it’s a safe bet analysts will be asking the company to address the issue next week.

Foolish takeaway
I still believe Lumber Liquidators Holdings Inc (NYSE:LL) is a fantastic company and one whose potential I’ve already learned can be dangerous to underestimate. While the questions above by no means represent an exhaustive list of things to look for in analyzing Lumber Liquidators from an investment standpoint, they’re certainly a great place to start.

The article 3 Questions for Lumber Liquidators originally appeared on Fool.com.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Home Depot and Lowe’s. It recommends and owns shares of Lumber Liquidators.

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