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. For FY 2001, which ends June 30, I'm projecting a record year for Ethan Allen. 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, acquired privately held Jordan's Furniture. Richard Band is the author of Contrary Investing, and has been editor of Profitable Investing since 1990. For more information on how you can get safe, predictable double-digit profits every year, click here .