In a sign of weak demand, specialty hardwood flooring retailer Lumber Liquidators priced 10 million shares (1.5 million shares less than expected) at $11, below its proposed $12-$14 range. While the company has produced 23 straight quarters of positive same-store sales growth, we believe investor concerns over the weak housing market and a greater than 20% drop in US hardwood flooring sales since the beginning of 2006 weighed on the offering. Goldman Sachs and Merrill Lynch acted as joint book-running managers for the IPO, and the stock is expected to commence trading on the NYSE under the ticker symbol "LL" on Friday.
