Ann: Response to Media Speculation, page-123

Have you read the Glaucus report?????

The price dropped because Glaucus shined a light on the reporting methods of Blue Sky. They were submitting inflated valuations on the assets, this then allowed them to record performance fees (on paper only, never collected) and effectively overstate their profits. Then when people went back and had a look, they realised that Blue Sky have never been profitable - EVER - without those uncollected performance fees.

They then selectively sold down investments to over state their average returns and tried to hide the under performing investments.

Further as I have said previously, if Oaktree get involved, Oaktree will do really well out of the deal, the investors in the funds and BLA shareholders, probably not.

Lastly 30 million dollar negative operating expenses in 6 months, has very little to do with the share price. Maybe 10 million in restructuring costs, at best. This business should be making money, operating costs should be below management fees.

If BLA can get its business model sorted, then its probably worth $3 a share, at best. But thats a big IF, and there is just as much a chance that the business gets suspended from trade and shareholders never see a cent.