What Happened to Blue Sky’s Share Price?
Shares in Blue Sky Alternative Investments Ltd [ASX:BLA] rose just under 6% today. The company invests money in alternative assets on behalf of institutional and private investors. The stock is also moving up alongside the bullish trend of the general market at the moment.
Why Did This Happen to Blue Sky Shares?
The stock market is pricing in strong earnings for the company. Two days ago the company released its half year results to the market. Both revenue and profit were up on the corresponding period the year before. The projections for the amount of funds under management in Australia give the company excellent growth prospects.
What Now for Blue Sky?
I asked our small-cap analyst, Tim Dohrmann, for his take on the company. He told me,
‘In the asset management game, it’s just as important to achieve scale as it is to maintain performance. Blue Sky ticks both boxes. It has established a beach head in an attractive market with a model that’s very hard for competitors to replicate.
‘An alternative asset is anything that lies outside of the traditional cash, bonds and shares. It includes assets like real estate, private equity, farms, commodities, infrastructure and venture capital.
‘In the coming months and years, more and more wise investors will cotton on to the potential of the investment underworld. Right now people have a chance to get ahead of the game and ride the next leg of growth in this attractive market.’
If you’d like to no more about the small cap opportunities Tim covers, go here.
Editor, The Daily Reckoning