Thursday, August 10, 2006

Brazin Limited - Did I get it Wrong ?

Brazin Limited has continued to fall to new record lows today around $1.24

Did I get the analysis wrong ? Well lets look at why it is falling. The company is a collection of companies. I knew this when analysing the company. I also noted that they were removing unprofitable businesses to focus on those making money. That is a top idea which was also noted.

Sionce then the company has come out and have said they are going to have a review to see if they can fix any structure issues and such. This includes maybe selling some of its businesses to private equity firms. There has also been a hint that they may sell the whole business. This has all cast doubt into investors minds and as such a 10% gain we had recently is now a 20% loss.

What should be done from here ? Well my estimates for the company are still the same until I see the financial report. There is still no reason to exit the stock. Those not already in the stock may want to hold out until after more information is available for the restructure.

The stock is still a good buy but the added unknowns is pushing down the price. As soon as the restructure information is available and the full year report is available I will post some more information on this company.

Good Luck Investing.

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