Interest expense is minimal. As a result, ETH s profits fluctuate much less than you might expect from a business that deals in big-ticket items. In fact, ETH s earnings have risen every year since 1993. Another double-digit increase is in the works over the next 12 months, despite the slowdown now under way in housing. What really excites me about Ethan Allen, however, is the stock price.
Management knows the stock is cheap.
That s why ETH is energetically buying back shares. Warren Buffett undoubtedly knows, too. The Berkshire billionaire, who has spoken glowingly of furniture retailers, recently acquired privately held Jordan s Furniture. We ll carry the stock in our model portfolio under Little Giants. Tongues are clucking in the nation s capital over Judge Jackson s harsh antitrust ruling against the software giant.