Publication Sees Risk in Lumber Liquidators Stock

New York NY, April 21, 2011 -- Online publication Seeking Alpha says that Lumber Liquidators has seen declining inventories over the last few quarters, leading to gross margins that are the lowest in four years.

It recommends that the stock be shorted by investors.

"We feel a major red flag is the fact that cash flow has been lower than net income consistently for the last four years and hasn’t shown any sign of turning," the publication said.