Irwin Michael, B.Com, MBA Flexsteel Industries FLXS-Q TOP PICK Sep 09, 2011

Stockchase Research Editor: Michael O'Reilly Consumers have been pent up in their homes and the trends appear towards making their nests more comfortable. FLXS is a well run furniture manufacturing company, that carries almost zero debt and has strong cash reserves. The company released earnings that were obviously impacted by the pandemic as the company chose to exit non-core businesses and focus on the higher margin items. However, some very bright spots included an 86% increase in ready-to-assemble products. The dividend was cut to preserve capital, so the yield is likely safe from here. The recent pullback in price affords a buy opportunity. We would trade this with stop-loss at $15 with an eye towards $21 -- over 20% upside. Yield 1.11%

(A Top Pick Aug 25/20, Up 44%) When we recommended this furniture manufacturing company we picked $21 as an upper target. It has smoothly moved through that target. We are now recommending to trail up the stop-loss to $21, looking to cover half of the position should there be a pullback in the stock price.

(A Top Pick Aug 25/20, Up 66%)Stockchase Research Editor: Michael O'Reilly Following up on our recommendation to raise the stop-loss to $21, we are setting an objective at $28 to remove 50% of the position. This would secure a 75% return on the position and we would recommend to re-establish a new trailing stop at that time. The stock has the momentum of insider buying right now, but the valuation is getting a little ahead of itself.

(A Top Pick Aug 25/20, Up 75%)Stockchase Research Editor: Michael O'Reilly As we have hit our $28 objective, we are recommending to take profit on half of holding in FLXS. This secures a 75% gain on half the position. We recommend raising the trailing stop to $24.00.

(A Top Pick Aug 25/20, Up 125%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FLXS has progressed well. We are recommending to trail up the stop (from $24) to $31. Along with our previous recommendation to cover 50%, this would all but guarantee an minimum return on investment of 84%.

(A Top Pick Aug 25/20, Up 182.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FLXS has progressed well. We are recommending to trail up the stop (from $31) to $42. Along with our previous recommendation to cover 50%, this would all but guarantee a minimum return on investment of 119%.

(A Top Pick Aug 25/20, Up 163%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FLXS has triggered its stop at $42. We recommend covering any holdings at this time. Combined with the previous recommendation to cover 50%, this will result in a net investment return of 119%.