DXYN - The Dixie Group: An Opportunity For Shareholder Value Realization
Investment Thesis Summary
Similar to most deep value situations, The Dixie Group, Inc. (DXYN, “Dixie”) has some hair on it – it's hasn't generated GAAP profits in any quarter since early 2017, it is in the unexciting business of manufacturing and selling floorcoverings (rugs, carpets, etc.), and it’s family-controlled through a dual class share structure. While Dixie would not qualify as an “excellent business with a moat”, its stock nonetheless represents an attractive investment opportunity given its bargain purchase price and impending catalysts. The stock trades at a ~60 percent discount to tangible book