The number of shares of Lumber Liquidators Holdings Inc. that have been sold short by investors betting the stock would decline surged to a record 7.8 million shares, or 30% of the float, on Feb. 20, the highest level since at least 2007, according to FactSet. A "60 Minutes” segment on Sunday alleged the company is selling Chinese-made laminate flooring that has a much higher-than-permitted level of formaldehyde, a chemical known to cause cancer. Morgan Stanley analyst Simeon Gutman on Monday cut his rating on the stock and removed his price target, citing "heightened uncertainty." Lumber Liquidators shares tumbled 20% by midday Monday. They had already skidded 26% last Wednesday, after the company warned on a call that the CBS news program would show the company in an "unfavorable" light.
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