Look at the facts for this stock:Owns Sanity stores in Australia...

Look at the facts for this stock:

Owns Sanity stores in Australia and UK, owns Bras n things stores and aztec rose surfware.

The business in Australia (BNT) is reported to have experienced even better trading conditions since Christmas.

The Aussie Sanity stores are set for a refit to focus more on DVD's as that is where the growth is at. Their new POS system should also help management increase efficiency.

The company has practically no debt and is producing solid cashflows even though the last 6 months experienced "low" profit of $18.8m.

Now the stock is trading at $1.17 and the following details show just how cheap the stock is:

EPS (last 6 months) 16.2c (before inventory write downs, after writedowns it was 12.5c

i.e. PE of 7.2 (using last 6 months profit) or 9.2 (using profit after write downs).

Operating cashflow per share is a solid 58cps. Considering the stock is now $1.17 that's a pretty good cashflow.

Dividend yield using the final dividend only is 7.2% or over 10% assuming a interim 4c dividend.

Management have stated the store refits and rebranding (UK) have increased turnover by around 20%.

All sounds like the stock is too cheap.

PPT own over 10% and the family owns over 50%.

A buy? I think so.