Janney Upgraded LL Stock, Disputing ASTM Test
Philadelphia, PA, March 4, 2015—As fallout of the 60 Minutes report that found some of Lumber Liquidators’ Chinese-made laminate flooring to have excessive levels of formaldehyde, a known animal carcinogen, the company’s stock fell 25%, from just under $70/share to $38/share, reports Bloomberg Business.
However, on Tuesday, Janney Capital, a Philadelphia based analyst firm, upgraded Lumber Liquidators stock to buy, stating that they are satisfied with Lumber Liquidators’ response to the accusations and saying that the idea that Lumber Liquidators would risk everything to save a few million dollars, in purchasing laminate flooring that doesn’t comply to CARB standards rather than flooring that does comply, doesn’t pass the common sense test, says Bloomberg Business.
In addition, Street Insider reports Janney analyst David Strasser noted there were no victims on the show, U.S. regulators did not participate, and he is satisfied the company is CARB compliant. Given this, he thinks fears are overblown, says Street Insider.
However, in an interview on Floordaily.net, Kip Howlett, president of the Hardwood, Plywood Veneer Association (HPVA), whose organization’s labs are deputized by the state of California to conduct testing for compliance with California formaldehyde standards. HPVA conducted the testing of some of the Lumber Liquidators flooring for 60 Minutes and confirms that it fully followed ASTM test methods in completing the analysis of Lumber Liquidators’ products. To listen to that interview click here.