I would guess that the executives of this company actually spend their time running the company so that they can maintain their record of paying dividends every year since the 1930's. As you know, furniture manufacturing is a mature industry and has to compete with low wage foreign imports. FLXS has to run faster just to stay in the same place. Now they have to cope with the recession and terrible housing market.
I have been waiting years for the price to get to $10. Now it is $7 and change and I have been building a position in it. If the economy recovers and FLXS survives, I think it will at least double. You don't find companies with the history and good accounting that FLXS has at this cheap price very often. At this valuation, FLXS qualifies as a 2/3 net working capital stock with a good record. I haven't seen one like this since the 1970's.
I agree with you that management is focused on running the company but why aren't any of them plunking down their own money on the stock? Or, if the lot of the managers had confidence in the operation, they could buy out the thing with a loan secured against all the working capital, then keep all future profits for themselves.
Sadly domestic furniture making is a tough way to make a buck. I'm rooting for Flexsteel but am wondering why the managers don't seem to have faith in the operation. Maybe something is in the works.
One of my complaints about FLXS is that, in my opinion, they give the management to many stock options. Apparently, the managers truly view it as compensation and sell many of the shares. Well, the stock is going to have to go up a lot for that ploy to work in the short term.