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Culp Inc. (CFI) is an Object Lesson in Business Development

The stock market has always known that excellence in Business Management distinguishes the best corporations. Marketing, Finance, and Human Resources Development are the key functional areas which the best-run corporations use to thrive in challenging business environments. Here is a small capital stock case of Business Management application for superior performance in the Textiles-Non Apparel Industry.

The company is in the business of mattress ticking, box springs, and upholstery for offices and for homes. It would therefore appear to be vulnerable to the difficult business conditions that have prevailed for most of the last 12 months. However, the company has some achievements to show that are rare for the conventional Textiles-Non Apparel Industry. Sales have grown annually by 8.56 during the Most Recent Quarter, even though the industry has declined during this period. The management has therefore proved its ability to grow market share even during negative total demand growth.

Total Debt is just 0.40 of Equity at the end of the Most Recent Quarter. Stock investors can therefore rest assured that the company is not overly leveraged in efforts to gain new customers in a recession-hit market. The business has strong vertical integration, and a new head of Human Resources has recently joined the top management team. This stock has climbed to just over $8 by the end of the second week of April 2008, compared to a 52-week high of $12.30.

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