Whitney Tilson Just Released A New Lumber Liquidators Slideshow, Offers Nine Reasons Why Company Is Still Guilty

Famed hedge fund manager and notable Lumber Liquidators Holdings Inc LL short-seller on Wednesday published a slideshow offering his current thoughts on Lumber Liquidators. According to Tilson, it is more than 90 percent likely that the company's senior managers knew that it was sourcing non-CARB-compliant laminate. He offered nine reasons to support his beliefs: 1. Tilson received two anonymous tips, one of which claimed he is part of the "five or 10 people who knew what was going on" and has "fairly damning information that they did it to save a buck, and they knew about it. 2. A Lumber Liquidators installer told Tilson that he was informed by a senior executive that a high failure rate of their bamboo flooring is occurring because the prior bamboo flooring had high levels of formaldehyde. 3. Tilson's impression is Lumber Liquidators has acted "exactly as I'd expect a guilty company" would act following the 60 Minutes story. 4. The "sudden and unexpected" resignation of CEO Robert Lynch goes against the theory that "people with nothing to hide tend not to suddenly quit." 5. "Pretty much everyone" Wilson has talked to stated that Lumber Liquidators is a "notorious bad actor" with a reputation of "not being serious about compliance." 6. "You can't hit the low bid in China and expect to get high-quality, compliant product. 7. Chinese mills openly sell non-CARB compliant laminate. "Just ask them for a price quote." 8. QVerity posted a "damning" report that suggested that Lumber Liquidators' founder and Chairman Tom Sullivan was deceptive and untruthful during the 60 Minutes segment. 9. Ray Cotton, Lumber Liquidators' Senior Vice President, Chief Compliance and Sustainability Officer is "totally unqualified for the job" and is a person that a company would hire if it was "knowingly sourcing tainted products and didn't want the head of compliance to know about."