If you do the work here you see a company that has it's core revenue stream threatened.
I'm aware. If they had any long term debt I'd be concerned. However, they have no LTD. I know looking at a balance sheet is beyond most people here but I think they will weather this.
there is some serious risk here and writing naked put options is not the smartest move unless you know something I don't.
There is risk in everything. I have my reasons for messing with this particular stock. I'll only lose 5k if it goes to zero. Book is like 12 bucks a share. I'm not that concerned. I'm just dinking around with some things. I don't believe in paper trading. It isn't the same. Anyways I know LL is not a true yolo play. I trade small though most times.
If you look at my username I generally try to make money as I like money.
That said I believe LL will recover long term. Maybe not to 100 but I don't think it is going to zero either.
However, I also never underestimate the stupidity of the American people. So while it would be a shame if they went out of business it would be solely because of the stupidity of people and/or they KNOWINGLY sold bad stuff.
Lets not forget formaldehyde is in all sorts of stuff. The issue with it is it is a VOC. That shit needs to off gas.
LL didn't kill anyone. The test broke the core and was the wrong test. Well no shit it has formaldehyde.
You can dump straight formaldehyde on the freaking ground, clean it up, and test a week later and get no detect. It is volatile organic compound. It breaks down. Eventually even the most formaldehyde soaked wood will stop releasing it eventually. Simply put it isn't that big of deal to anyone that understands chemistry.
So downsides in LL what do we have left? The lacey act thing which the largest fine ever I think was 300k to Gibson.
http://www.aphis.usda.gov/plant_health/lacey_act/downloads/LaceyActPrimer.pdf
We also have the CARB shit but that is California.
Regardless there are no limits outside of California.
All that remains is if this will so negatively impact LL that it goes bust because people stop shopping there and go buy the same formaldehyde soaked wood at HD while smoking a fucking cig.
http://www.ncbi.nlm.nih.gov/pubmed/2604841
That would be a shame because a short seller basically killed a business. Maybe LL knew the wood wasn't carb compliant. I don't know.
http://www.businessinsider.com/tilson-on-lumber-liquidators-ceo-leaving-2015-5
which contained high levels of formaldehyde, a dangerous chemical and known carcinogen, and thus endangered the health and safety of its customers, especially children.
Rolls eyes.
I'm in this for year. Meh.