Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, December 17, 1993                   TAG: 9312170162
SECTION: BUSINESS                    PAGE: A20   EDITION: METRO 
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE:                                 LENGTH: Medium

ROWE MAY BE AIMING HIGHER

The company, which has had strong sales growth this year and seen its stock value rise more than $15 a share, appears to be positioning itself to become more attractive to large investors.

Rowe has historically been a closely-held company, partly because of the small number of shares available. The latest split, which will be payable as a 50 percent stock dividend on Jan. 3, increases the number of shares to 9.1 million.

The more shares, the more interested big investors will be, said broker George Brammer of A.G. Edwards Co. in Roanoke.

Brammer said Rowe's stock experience this year, however, is just one example of what is happening in the home-furnishings industry.

"The furniture industry is extremely good right now," he said. Lower interest rates have generated housing sales, which drive furniture sales. Also, some people who have refinanced their mortgages are using the money saved to upgrade their home furnishings. Plus, the baby boomers are ready to furnish their houses and have the assets to do it with, he said.

Brammer said the large mutual-fund companies are starting to move into the furniture industry. He noted that Fidelity has said it "likes Bassett Furniture Industries."

He said the stocks on A.G. Edwards' "buy" list include several home furnishings companies, including manufacturers La-Z-Boy, Chromecraft and Bush Industries and home-furnishings retailer Heilig-Meyers.

Rowe is an "underfollowed" company, but it "fits right in" with the ones on the list, Brammer said.

Rowe's stock was up $1.62 1/2 Thursday, closing at $18.87 1/2 a share, with 24,000 shares traded.

"That's pretty good volume for a stock not followed," Brammer said.

Rowe's chairman, Gerald Birnbach, was among the furniture executives who pitched their companies to large investors recently during a symposium in Florida.

Birnbach said last week that the company anticipated record shipments of about $26.8 million for the fourth quarter ended Nov. 28, versus $20.7 million for the 1992 quarter. He also said net income for the fourth quarter and year is expected to establish records for the corporation.