Lumber Liquidators (NYSE: LL): This 500% Gainer Could be About to Take a Double-Digit Dive

As the housing market showed tentative signs of a recovery in the summer of 2011, many investors assumed that buying shares of homebuilders would lead to considerable profits. These stocks have indeed rallied nicely in the past two years, but have been outpaced by a more stealthy housing play, Lumber Liquidators (NYSE: LL).
In the past 24 months, this stock has risen more than 500%. Trouble is, the stock is now disconnected from the fundamentals, and a sharp reversal may soon be at hand.

Lumber Liquidators sells a wide range of flooring materials through a network of more than 300 stores. Through much of the past decade, when the housing market was still going strong, the company posted solid growth. (more)

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