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They’re
forgiving souls, Brazin shareholders.

Majority stakeholder Brett Blundy has cost them millions in poorly thought out deals
and diversifications, and yet no-one has been game to tell him to sell his 59%
stake and stop hindering the company.

The
absence of any shareholder lynching shows what a complacent lot they are,
especially the big super funds who merely vote by selling, rather than tackling
the management and the board.

And they’re about to be tested further. Yesterday, this statement
was released to the ASX announcing the “orderly exit” of
Brazin from the continuing non-performing brands of Ghetto and Insane.

Ghetto
was bought from Blundy by the company back in 2003 – the purchase endorsed by an independent expert, whose report now joins that long list of similar statements
from “experts” who didn’t know what they were talking about. It’s amazing reading!

Two
years on and Ghetto, a consistent loss-maker, is to be downsized and sold off – to whom, though, Brazin seems not to know.

As for Insane, it
was just that – a mad attempt at diversification that failed on Blundy’s watch as director in
charge of development.

Total cost of the Ghetto and Insane experiments: think around $20
million, then raise it to include the losses in the six months to June
that haven’t been disclosed.

Meanwhile, the share price at close yesterday languished at $1.80 – the shareholders of Brazin are a forgiving lot.

Peter Fray

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Peter Fray
Editor-In-Chief of Crikey

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