Shares were on the rise again -- in the after-hours session on Monday, the market sent La-Z-Boy higher by 28% at one point. The furniture seller reported earnings for the fourth quarter yesterday, and they apparently were pretty solid to Wall Street's eyes. On a GAAP basis, La-Z-Boy made 10 cents per share from continuing operations versus a loss of 9 cents per share in the year-ago period. Sales, however, declined 23%. So, why such a big profit? The press release shows that a write-down was taken in Q4 2008.

According to Reuters, net income on an adjusted basis (after the net effect of a tax benefit and charges related to impairment and restructuring) came out to 7 cents per share in Q4, which completely surprised the analysts, who were expecting a loss of 11 cents per share!

How do you play La-Z-Boy? If the stock rallies on Tuesday during the regular session (and I'd have to assume there's a good chance it will based on the after-hours action on Monday), it's my opinion that investors should not buy the excitement. You probably don't want to get into a situation where you're purchasing too high. You want to wait for the stock to come back down.

Although I don't like dealing with low-priced equities that much, I do see La-Z-Boy improving over time. The company is cash-flow positive, it has a recognizable brand, and debt level is becoming more attractive.

I'm not saying that La-Z-Boy is the greatest business out there. It certainly is sensitive to the economy, and it has to work even harder at marketing its products and exploiting efficiencies. The move in the stock, however, may be telling all of us that the company will stick around. To me, it looks like an interesting trade opportunity. Only on a pullback, however. And I probably wouldn't use capital meant for safer investments. I'd only use capital meant for the riskier side of a portfolio. In the end, the decision is up to you, but La-Z-Boy should at least be looked at.

Disclosure: I don't own any company mentioned; positions can change without notice.