Lumber Liquidators shares fell again on Friday, marking a more than 50 percent loss for the company since it first disclosed that a negative "60 Minutes" story was on its way. But despite the fall, one major investor is betting it will go much lower.
Shares in the company, which traded Friday afternoon around $33, have fallen from more than $67 on Feb. 25 when the firm issued that warning during its earnings call. The stock sank even further when the report came out, alleging that Lumber Liquidators sold Chinese-made flooring with higher levels of formaldehyde than permitted under California's health and safety standards.
As the stock continued its slide, Whitney Tilson, the founder and managing partner of Kase Capital Management who originally brought the story to the CBS program, said he was increasing his short position against the company.
Tilson said in a Friday note that he "added materially" to his short position on Wednesday and Thursday, bringing his bet to a 3.8 percent position—which he described as "a very large for a short for me."