Friday, July 28, 2006

Brazin Loss second half of the year

Brazin brought out a report yesterday signalling a review of the structure of the company. Reading the report it would sit exactly in line with my analysis of where possible growth could come from and that was to reduce costs and focus on maximising profit from existing brands. This is the gist of the announcement.

But there is one line signalling that management expects results to be slightly better than last years net profit. Since the half year was a good result this only leads to suggest that they lost money in the 6 months since Jan. Again this fits perfecly with my analysis as most of the sales comes from Christmas.

Fortunately this dropped Brazin back to 1.40 and back into the targeted buy range. Since then it has moved back up to 1.47. At this level I expect it to hold and / or move higher. I do not expect it to drop lower than 1.30 based on the fundamentals but you never know.

The Annual report will be released at the end of the month and I shall review it then and post any important information in regard to this company.

Good Luck.

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