If you’re a long time talk radio listener, you surely have heard hundreds of advertisements for Lumber Liquidators. They offer lumber-like flooring systems at allegedly cheap prices. After all, they aren’t lumber.
CBS 60 minutes decided to break their kneecaps. Their report alleges two main issues – that the flooring releases too much formaldehyde – and that the flooring contains “illegal wood”.
You may remember the story of Gibson guitar getting caught in the same net – accused of importing wood from Asia was harvested “illegally”, which is a pretty hard thing to disprove – especially when the lumber is old.
Lumber Liquidators was buying their lumber from China, also known for their fine wallboard products made from toxic waste. Lumber Liquidators seems to be parsing words in their defense – that their “cores” pass the formaldehyde testing – but that’s not the claim that CBS is making. Formaldehyde is used in the glue that attaches the laminate covering to the core.
http://www.cnbc.com/id/102466810
Wall Street is in the process of liquidation of a toxic stock.