I have been assessing whether this is a decent company. I know of 2 colleagues that left Blue Sky due to the management mess. Personally I think there is a good price that you can pick up Blue Sky's share, but given the downgrade now I will stay away until the negativity subsided.
My focus on this is the downgrade and the paying dividend from "unearned income". Downgrade scenario is equivalent to Vocus (agree with Yoda2503 that one downgrade is never last) and also Telstra (agree with Pikel1980 that is not sustainable paying dividend from cash you yet have). Both Vocus and Telstra still struggling thus far to go up from where they have been but that includes some other industry mess which is mainly from NBN and partly from TPG distruption (which shares I hold).
Nonetheless, I'm confident some day BlueSky share price will find a point that it'll bounce, and we won't see a low of $4 for years to come. This is going to be a lesson to management, as well as their advisors, auditors and valuers to deal with BlueSky's asset carrying value very carefully.
