Ann: Blue Sky Market Update, page-59

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Maybe_111

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05/04/18

16:17

Post #: 32248672
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Originally posted by jdpc35 ↑

Agree re margin calls. At current price, we are starting to get into margin call territory and it could get very ugly very quickly.

Whilst I had stayed away from BLA in the past as I thought it was overvalued (and I have a bit to do with them professionally and hold the people there in good regard - just felt the market pricing of their equity was too high), it now has some enormous baggage that it needs to find a way to discard before we see price stability.

I don't believe for a moment that this is another funds management disaster like we have seen in the past. Rather it is a market tussle on how to value this entity going forward. It will settle at a price in the end, but where is anyone's guess at the moment.

All I can offer to those who hold the stock - don't panic. I have had many a good underlying stock which has gone into freefall for different reasons and I have found more often than not that holding my nerve and not selling has allowed me a more profitable exit later. I classify BLA as a "good" stock as it has level of underlying earnings (it is the maintainable earnings that is at the core of this debate) and a good cash buffer courtesy of the recent raise.

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And NO NET DEBT

BLA Price at posting: $5.62 Sentiment: Buy Disclosure: Held
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0 Great analysis

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Ann: Blue Sky Market Update, page-59

Top Stories

ASX Today: XJO shrugs off oil price surge for moderate Tuesday gains; RBA holds rates

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Red Sky Energy takes off on Yarrow drilling plans at Innamincka Dome

Sun Silver wraps up high-resolution airborne geophysical survey at Maverick silver project in Nevada

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