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What's happening: Following a 16% plunge Monday, shares of Lumber Liquidators Holdings had rebounded 10% as of 1 p.m. Tuesday after the company provided an encouraging agenda for its upcoming conference call with investors.
Why it's happening: For reference, yesterday's drop followed news that the federal Consumer Product Safety Commission had reached out to CBS' 60 Minutes to request the results of testing cited in its recent negative report on the company -- results of which, for the record, Lumber Liquidators has steadfastly insisted are inaccurate.
Today, Lumber Liquidators helped dispel worries that its business update conference call to be held on March 12 could hold bad news for investors. To be sure, it left little to the imagination with bullet points including, "Our Products Are Safe," "What's Causing the Confusion," "Taking Care of our Customer," and "Why We Believe Our Liquidity Is Adequate for the Foreseeable Future." Lumber Liquidators also promised to detail its sales mix and laminate sourcing, its first-quarter 2015 outlook, and next steps including "Marketing the Value Proposition" and plans to focus on customers.
Of course, this doesn't rule out the possibility Lumber Liquidators' first-quarter outlook could reflect consumers' negative views of the company in light of the 60 Minutes report. But simply knowing Lumber Liquidators continues to be optimistic that it's in the right goes a long way toward appeasing skittish investors given this uncertainty.
The article Why Lumber Liquidators Holdings Inc. Stock Rebounded Today originally appeared on Fool.com.
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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Lumber Liquidators. The Motley Fool owns shares of Lumber Liquidators. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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