Pacing — like trading — is not an exact science. I always lose a portion of my group along the way. Some falter on the hills, while others fade in the final few kilometres.
Still, who exactly was buying last week when the share price was north of $5.50? Seriously, I spent about 30 mins looking at the numbers and doing some high school maths that I managed to remember, and concluded the stock wasn’t worth touching with the proverbial barge pole. It was plain to see, even for someone as simple as me, that this thing was radioactive.
I’m going to talk about valuation…as in fundamental, old school asset valuation. I’m also going to talk investor psychology and how when you get the two of them working together, or in this case against each other, the results can be spectacular. And given the recent controversy over Blue Sky Alternative Investments, I thought it would be interesting to perform an intrinsic value calculation to see where actual value is for the company.