Whats next for Blue Sky?, page-11

Hahndoe, see your comments below, 3 weeks ago. In the last three weeks, as predicted, massive losses announced, no profit based on new accounting standards, further writedowns of underlying assets and dividend has been canceled.
Over the next 4 weeks we are looking at further writedowns, further adjustments to profits and a further reduction in their cash position. If there is not a material change in the business by August when they release the annual report, there will be no cash left. Now if they bring investors into the funds they have seeded and get most of the $20mil they have thrown into them back, then we might - might - have a business that could salvage itself and there is value circa $1.50 to $2.00 assuming that they can get themselves profitable. Otherwise this will drop like a stone to $1 and become a takeover target by a APW or an Aurora or something.
One would have to suggest that your opinion cannot be trusted because you are a holder?
Hahndoe

309 Posts.
Date: 25/05/18
Time: 20:29:47
Post #: 33315909
Pikel: "Sell, Not Held" - your opinion and comments cannot be trusted because you have no skin in the game

So what changed?

- they still have the assets they had before. They have been revalued lower... This is quite understandable. Property is always overvalued by agents except in situations like this. Then the valuer become ultra conservative.
- dividend yield was around 1.5% (red flag) @ $15. Its now 8.8% based on 23c @ $2.6. If the yield is 5% @ $2.60 its a dividend of 13c (~50% of previous dividend). Oh no the sky is falling....
- If you can stay un-emotional you'll see nothing catastrophic really occurred - at least with today's info

However, something has happened that won't be discussed and in my view is very important when deciding whether to buy when there's blood on the streets - Taking Ownership of the Issue

Lets look at AMP. ASIC began investigating their issue in 2015... that's 3 years ago!!!! If AMP had taken ownership immediately, apologised, paid fines, sacked CEO's etc. it would be done and dusted and people would have forgotten about it by now.

THIS is what BLA has done. They have taken immediate ownership of the issue which is why I bought. This shows the company, even if they have stuffed up, is run well and I will always be more inclined to trust a company that immediately admits their mistake, finds a solution (which they have done), implements it (which they have done), and gets back to making money.

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BLA (ASX)
Price at posting: $2.56
Sentiment: None
Disclosure: Held