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Xuhua Zhou

 
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  • YY: Do You Know What You Own? [View article]
    As expected, YY posts a blow-out quarter. Question is, are the numbers reliable...How could a platform that is losing traction report record revenue and profit growth quarter after quarter..
    Aug 1, 2013. 04:32 PM | 4 Likes Like |Link to Comment
  • YY: Do You Know What You Own? [View article]
    TSLA is not a fraud...
    Aug 1, 2013. 11:54 AM | 9 Likes Like |Link to Comment
  • Angie's List: Flawed Accounting Leads To Overstated Profitability In Mature Cohorts [View article]
    I think Angie's management knows well it's expense allocation is flawed but it touted anyways to the mutual fund managers. The model is only as good as your assumptions and most of the time, people forget checking the assumptions.
    Jul 18, 2013. 01:37 PM | 5 Likes Like |Link to Comment
  • Illegal Products Could Spell Big Trouble At Lumber Liquidators [View article]
    The only point you are missing is the testing was done on the back side of the wood product with the veneer covered. So it is in fact non CARB compliant.
    Jun 25, 2013. 10:17 PM | Likes Like |Link to Comment
  • Lumber Liquidators - Management's Silence And Broker's Rebuttal May Validate The Worst Fear [View article]
    I completely agree. If you know any journalists or individuals that may be interested in reporting. I'm happy to speak to them about what I did and the results I had.
    Jun 24, 2013. 07:38 PM | Likes Like |Link to Comment
  • Lumber Liquidators - Management's Silence And Broker's Rebuttal May Validate The Worst Fear [View article]
    quickshot, the process is detailed in the first article as well as the labs used. You can even purchase the same product that I linked in the article to test and see if it emits .17 ppm.
    Jun 24, 2013. 07:38 PM | Likes Like |Link to Comment
  • Lumber Liquidators - Management's Silence And Broker's Rebuttal May Validate The Worst Fear [View article]
    Thus far, it has mostly been circus in the stock market. I do expect the media to start picking up the story at some point in the future.
    Jun 24, 2013. 07:37 PM | Likes Like |Link to Comment
  • Lumber Liquidators - Management's Silence And Broker's Rebuttal May Validate The Worst Fear [View article]
    Yes of course. Please send me an email I'm more than happy to explain the process I went through for the testing. It costs a little over a thousand dollar for a single sample. Let's hope LL didn't get you contaminated products in your home.
    Jun 24, 2013. 07:36 PM | 2 Likes Like |Link to Comment
  • Lumber Liquidators - Management's Silence And Broker's Rebuttal May Validate The Worst Fear [View article]
    I am still short LL.
    Jun 24, 2013. 07:35 PM | Likes Like |Link to Comment
  • Lumber Liquidators - Management's Silence And Broker's Rebuttal May Validate The Worst Fear [View article]
    Nothing yet. I have the sample all wrapped up ready to send to LL upon request.
    Jun 24, 2013. 10:50 AM | Likes Like |Link to Comment
  • Uni-Pixel: Is The SEC Investigating? [View article]
    Thanks. I miss the vigor of his language. Tell him to come back to the board!
    Jun 23, 2013. 07:32 PM | Likes Like |Link to Comment
  • Illegal Products Could Spell Big Trouble At Lumber Liquidators [View article]
    Well I can't argue with that. It's next to impossible to find another stock that can match sino-forest..or the wave of china fraud that had occurred..
    Jun 23, 2013. 12:00 PM | Likes Like |Link to Comment
  • Uni-Pixel: Is The SEC Investigating? [View article]
    Chris, I can't help noticing the noted absence of Green River Asset. Any idea on his whereabouts and the his absence from the pixie defense team?
    Jun 23, 2013. 08:51 AM | Likes Like |Link to Comment
  • Illegal Products Could Spell Big Trouble At Lumber Liquidators [View article]
    John,

    I would respectfully disagree with you on the issue. The reality is, the company could get away if nobody else follows up on the situation and the company puts in place proper control going forward on this issue. I'm actively campaigning against the Company by proactively reaching out to the regulators and members of congress to prevent them from getting away with their past violations. We'll see how it may play out. The three members of congress I wrote to have in the past addressed issues related to formaldehyde in the Brazilian blowout case. I'd have to imagine they should be plentifully interested in the largest US hardwood flooring company selling contaminated products -- a lot of political capital to gain from taking action. Also through my research, it appears LL has major product quality issues beyond formaldehyde and that's likely its primary driving force behind the margin expansion. A sheer number of complaints about the Company should be cause for concerns. How could a company with unhappy customers succeed? sure they may post growth temporarily but a lasting business cannot be built upon such a shaky foundation. I think in general, Chinese consumers are much more vigilant about product quality concerns than US consumers simply because risks are much greater in China but that is not to say US consumers are oblivious of such risks. The lead toy case is a good example. With the current valuation in place, LL cannot afford a PR disaster.

    With regards to the risk of bankruptcy, I will concede it is not a high probability event but I can offer you a conceivable scenario. The formaldehyde flooring issue gains widespread attention over the next few months and CARB investigates the matter ( the only body actually enforces the issue) and finds serious violation since the emission standards were put in place. LL could be required to recall products and pay fines. Recalling flooring products would be prohibitively expensive even if they are only required to do so by law in the state of California. Now the Company faces a major dilemma as to whether recall all products sold in the US. It would be tough to know how much that would cost but could easily run upwards of 50 million. As a result of that, the company's reputation will suffer and could experience at least a temporary decline in revenue. With a 6% operating margin, LL very well may start posting losses while it reviews the 210 million dollar inventory. With 70 million dollar in cash, it is certainly not outside the realm of possibility that LL could go under. Even though it is a 2 billion dollar company at the moment, LL's a very asset light company with significant overhead expenses. Is this an extremely probable scenario? probably not. But could it happen, I certainly wouldn't rule it out.
    Jun 23, 2013. 08:24 AM | Likes Like |Link to Comment
  • Illegal Products Could Spell Big Trouble At Lumber Liquidators [View article]
    Oh I am totally happy to hit and smear a company that sells consumer toxic flooring products. This company should go away and that makes the world a better place...The sample I tested probably went to somebody's home where kids are playing on the floor.
    Jun 21, 2013. 04:47 PM | 1 Like Like |Link to Comment
COMMENTS STATS
148 Comments
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