Chief Legal officer makes six-figure buy.
On Monday, August 19th, Michael Reeves, Chief Legal Officer at Lumber Liquidators (LL), bought 14,900 shares, a stake that cost nearly $124,000. The buy increases his stake in the company by 50 percent.
This is the third buy by insiders in 2019, including a 14,000 share purchase by the company’s CEO, Dennis Knowles on August 8th, at a similar price. Insiders have been inactive in the stock between 2015 and 2018, with no insider trades recorded.
- Man Who Predicted 2008 Crash: “The Mother of All Crashes is Coming”
If you've watched the movie The Big Short,you've heard of Michael Burry. He was one of the few who no only predicated the 2008 crash but profited from it.
He made $750 million for his investors and $100 million personally when his bet against the housing market paid off. His next big prediction?
He's warning the "mother of all crashes" is coming.
If you have any money in the markets, I urge you to click here and get the exact day of the next stock market crash.
Lumber Liquidators sells hard-surface flooring, flooring enhancements, and accessories, from various hardwood species of lumber, laminates, vinyl, porcelain, bamboo, cork, and other products. The company operates 413 stores for its products, and also offers home delivery and installation services.
Action to take: The company’s poor operational performances and negative media coverage for how it sources and treats its product makes shares look unattractive, even if a bounce is likely now that shares have fallen by over 50 percent in the past year. While we like the insider buys, and a buy from the company’s legal expert says there may be no big legal issues ahead, operational turnaround would be better before making an investment either way.
Based on the long-term slide in shares, which still doesn’t have any indication of turning around, speculators may want to look at the January 2021 $5 call options. Trading for around $90 per contract, they could be worth more if the company faces more negative coverage or files for bankruptcy.