I think Bras n Things justifies the current share price by...

I think Bras n Things justifies the current share price by itself (I thought the same at $1).

The music business is suffering but Brazin's profits are lower because they opened quite a few stores at very poor locations. These can be shut in time (after the 1-2 year leases expire). But on the other hand they have quite a few stores in excellent locations e.g. next to the cinemas which is open till very late.

I'm sure management won't sit on the side lines and watch these unprofitable stores drag down profits forever but they'll have to wait till the leases expire at the earliest.

They have a clean balance sheet so solvency isn't an issue and with a little clever management I can see this stock providing a healthy dividend into the future.

But I agree, they need to do somthing about pricing. CD's and DVD's is a commodity business, volume is everything. They need to have cheaper CD's and sell more high margin products like accessories.

Cheers,
Munch.