Blue Sky Alternative Investments Ltd managing director quits


Just a touch over six weeks ago things were looking very good for Robert Shand, the managing director of Blue Sky Alternative Investments Ltd (ASX: BLA).

He had just successfully raised $100 million at $11.50 per share to support new funds, investment platforms, and joint ventures, and the Blue Sky share price stood at a lofty $12.00.

Fast forward to today and the Blue Sky share price has fallen over 71% to $3.26 and Robert Shand is without a job after deciding to quit as the embattled investment company’s managing director with immediate effect.

According to a release, Mr Shand offered his resignation as he felt it was in the best interests of the company and its shareholders, believing that it was a necessary move to rebuild market confidence.

Mr Shand has been heavily criticised over his handling of the Glaucus short selling report, most notably when he failed to provide a questions and answers session during his first analyst call following the allegations.

Mr Kim Morison has been named as interim managing director. He has been managing director of Blue Sky Water Partners since 2010 and appears to be a good fit for the business.

The release advises that Morison will focus on rebuilding market confidence in Blue Sky’s investment businesses, delivering returns for shareholders and fund investors, and acting on the board’s commitment to greater transparency.

In addition to Shand, Blue Sky has also announced that executive directors, Ms Elaine Stead and Mr Nicholas Dignam, will step down from the board. They will, however, both continue in their executive roles in the business.

Blue Sky has commenced a search for a permanent managing director and additional independent directors to the board.

What now?

First AMP Limited (ASX: AMP), now Blue Sky. It certainly has been a volatile week for ASX C-Suites.

While I suspect that the market will respond positively to this news, I wouldn’t be a buyer of its shares just yet. I’m not convinced that the drama is over at Blue Sky and would suggest investors give it a wide berth.

In the meantime, maybe an investment in SEEK Limited (ASX: SEK) would be a good idea given all these departures!


Here’s how you can strike it rich in the share market…

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks