How A News Room Reacts To A Lumber Liquidators Collapse

Lumber Liquidators Holdings Inc (NYSE: LL) took a beating Thursday and closed down 16.5 percent after the company's CEO announced his resignation.

The press release made it clear that Robert M. Lynch "unexpectedly notified the Company of his resignation as the Company's President and Chief Executive Officer."

Related Link: Lumber Liquidators Stock Collapsing After 'Unexpected' Resignation

This news broke during Benzinga's #PreMarket Prep. Needless to say, show hosts Joel Elconin and Dennis Dick were overwhelmed with excitement.

"Liquidating the stock, holy cow!" Dick remarked as the stock began to plunge. "I beat you to that pun, Joel."

"Pick a bottom, we gotta find a bottom somewhere," Elconin added.

Lumber Liquidators bottomed out at $18.76 and eventually closed at $21.10.

"What investors are thinking here is this is just a really bad sign," said Elconin. "If the CEO knows what's coming down the pipeline…"

Elconin mentioned that Whitney Tilson had previously spoken about the forthcoming criminal charges that could impact Lumber Liquidators executives.

Tilson said he was "shocked" by the resignation, and still maitains his short position in Lumber Liquidators.

See the rest of the show below:

Lumber Liquidators said that it intends to commence a "national search" for Lynch's replacement. Company founder Thomas D. Sullivan will serve as the acting CEO until that search is complete.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.