brazin - why is this stock so cheap?, page-13

re: brazin - should do well 2003 I agree, it's a buy and hold. BNT is performing well after the store refit and Sanity UK is expected to produce "modest profit growth" for the coming period.

The troubled division i.e. Sanity Australia only produced $2m profit in the last half and has all the upside. They are doing a store refit there too (they managed to do the BNT refit well). Sanity is a great store for those who have shopped their. They will change their product mix to more DVD's and accessories. DVD sales are rising but due to the lack of "hit music" the CD sales are pretty flat (CD sales down 10% in Australia last year). It's just the business they are in.

I know sanity well and shop there myself. The local store at Castle Hill is always open and located next to the main cinemas. While all other stores are closed, Sanity always has alot of people buying stuff while they wait for their movie to start.

Nothing has changed, the same business but the shares are at $1.20. Pay a final dividend of 8.5c and has a PE ratio of 10 based on last half "depressed" earnings alone.

Also note director buying recently.