Posted on 16/4/18 (unfortunately can't attach the link as it is too far back)
Another very bad day for Blue Sky (BLA) sp falling 20% and hit another low of $4.03- another reason why people should avoid 'tainted stocks' at all cost. As they say if there's smoke there's likely to be fire. Now BLA has downgraded Asset Under Management (AUM) and NPAT guidance (by some 40%).
While a stock which had been suspended is not necessarily proven to be 'guilty', its very suspension suggest its corporate governance is suboptimal either via misleading disclosure to prop/spruik sp or non disclosure or poor transparency, take your pick. Which means you cannot place trust on management of such companies. Management of such companies are popular amongst HC forum communities because they make frequent announcements designed to prop up sp; such behaviour is rarely observed in companies which already have proven revenue and profit track records where HC forums are rather quiet.
BLA is back on the AFR covers with further write downs and potential cash issues. Its stock is now just $1.74 now from about $14.60 at the start of the year. And I cautioned people from buying into falling knives stocks or tainted stocks , thinking it could be a bargain.
If you haven't noticed, quality stocks take centre stage such as WTC and APX making new highs - dear gets dearer and cheap gets cheaper.
