Ann: Change in substantial holding, page-25

I like how people on this forum can look at negative sentiment towards a company and take the view that they are trying to down ramp it. At the end of the day, speaking for myself, I have owned this stock and am observing it because there might be some value in shell as a take over vehicle or at the same time an activist shareholder may step in and seek changes to the board and management and this business might have a chance to revive. However in my view, the share price is still too high for such an acquisition - hence why nobody has purchased of substance since the Glaucus report has come out.

But I think that there is a bigger issue at play in most of these forums, the public in general and the Australian brokerage firms (although I do note that there was one dissenting voice RE Blue Sky in Australia but they didn't publicly issue the report because Blue Sky commenced litigation) refuse to look at negative views, everybody is looking for the positive views and if you look hard enough and long enough, you will find somebody / a report, that can support a positive spin on a company.

The key is not to look at the motivation of the information (although it does help to use that for context) but the reasoning / legitimacy of the information in an arms length way. Accordingly if you read the Glaucus report with an open mind, some of their commentary is accurate, some is speculation and some is a biased view - however the report has raised some serious questions and the board and management have completely miss understood how to respond and whats going on in the business.

The reason the share price is hovering around $3 and not $11 is not the fault of short sellers, they are just a part of the process in the same way the broker recommendations and institutions who drive the prices up are as well, the share price is $3 because the market has had a deeper look at the business and said, Nah, something doesn't smell right. But seriously don't take my work, dont take Glaucus word, dont take the word of anybody who posts here. Dig into the financials yourself, ask questions, do your own research.

Dont be one of the mugs who was holding ABC Learning, Dick Smith, HIH, Quintis when they collapsed.

Blue Sky isnt about to fold tomorrow (well lets hope), but they are looking down the barrel of serious issues and I for one will be watching from the sideline until they put themselves back on an upward path. That path starts with a new external manager who will wipe the slate clean or somebody of substance who starts buying up a large parcel of shares with a view to change the direction of the company.