The Motley Fool

Why Blue Sky Alternative Investments Ltd shares are now down 90% in 2018

Shares in troubled asset manager Blue Sky Alternative Investments Ltd (ASX: BLA) sunk to a new low of $1.46 in trade today after the Brisbane-based group admitted it was the subject of an investigation by the regulator ASIC over its continuous disclosure compliance during the first half of 2018.

The stock has now lost 90% of its value since changing hands for $14.60 in January 2018 in a fall that is sure to leave its investors and class actions lawyers chomping at the bit to bring a compensation claim against it for potential breaches of the Corporations Act including potentially under s.674 that requires continuous disclosure of material information.

Already, legal eagles Piper Alderman and Gadens are inviting aggrieved shareholders to register their losses, with Blue Sky accused of, inter alia, exaggerating assets under management, misrepresenting performance of its investments and over-charging fees. In fact it recently came out in the wash that Blue Sky was including undrawn bank debt facilities when calculating the estimated value of some its real estate related assets under management.

It seems that investors in Blue Sky’s funds and shareholders may be eligible to claim against the group in a double whammy the if allegations are proven.

Given the serious problems Blue Sky looks a textbook shambles for investors to avoid, with multiple red flags highlighting its shot credibility as an investment grade asset manager.

Moreover, since the allegations against it became public many of Blue Sky’s senior management including its ex-CEO and two directors have done a Captain Schettino in abandoning ship, while claiming there’s little to worry about it.

The company’s founder is reportedly also long gone and given the allegations now surfacing it’s not surprising many of those in a position of responsibility are looking to distance themselves from the group’s practices.

Where ASIC’s investigation leads is unknown, but Blue Sky Alternative Investments does not look a turnaround opportunity for level-headed investors.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next ATLASSIAN.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

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.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here’s the best part: we think there’s one ASX stock that’s uniquely positioned to profit immensely from this explosive new industry… taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more