40. The Not-So-Big Short

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‘Shorting’ is an investing technique to make money if the price of a stock/asset/commodity goes down. For those familiar with the movie The Big Short – that is how investors made money betting on the collapse of the US Housing Market.  We thought it was a good time to do an episode on short selling because we’ve just seen a not-so-big short grab headlines in Australia. Blue Sky Alternative Investments has been targeted by American short sellers, and we’re taking the opportunity to discuss this case.

In this episode you will learn:

  • What short selling is, and the two main ways it is done
  • The rise of activist short sellers and some of their tactics
  • Why American investors are targeting the Australian company Blue Sky
  • What the response from Blue Sky was and how the market reacted

Stocks and Resources Discussed:

  • Blue Sky Alternative Investments (ASX: BLA)

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