The Motley Fool

Is the Blue Sky Alternative Investments Limited share price a buy?

The Blue Sky Alternative Investments Limited (ASX: BLA) share price is up by 0.71% today to $5.65 at the time of writing. It is down by more than 50% over the past month. However, that doesn’t seem to have put off the CEO from believing it’s worth buying some shares.

According to an Appendix 3Y released by the company this morning it was revealed that Robert Shand, the CEO, decided to acquire 20,000 Blue Sky shares for $98,600 today.

Although I’m sure this doesn’t represent a big portion of his wealth I think it is telling that he has put more of his money into the company’s shares at today’s price.

My colleague, Sean O’Neill, has done an excellent analysis piece on the latest goings on with the Blue Sky debacle. Perhaps the share price had gotten far ahead of itself, but if there isn’t a large flight of capital away from Blue Sky’s funds then today’s price could actually be very tempting.

Blue Sky had around $2.20 in net tangible assets per share in its half-year report a few months ago and its listed investment company (LIC) vehicle, Blue Sky Alternatives Access Fund Ltd (ASX: BAF), reported that it had $240.54 million of assets under value in its February 2018 monthly review. So even under a worst-case scenario, Blue Sky (the manager) has a value per share and it will have assets to manage thanks to the LIC.

Is it a buy?

You would have to be a brave investor to push the buy button on Blue Sky shares today, but it could also be a good value buy if it gets through this period. What if Glaucus is indeed wrong? Blue Sky could allay fears better than it has done, but it could indeed have the large funds under management it says it does.

However, I’d rather invest my money into these top shares over Blue Sky until this storm has passed.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!