Shares opened this morning at $8.40 and dipped as low as $7.51, representing a 27.8% loss from their last close of $10.40.
Last Wednesday, US-based short-seller, Glaucus Research released a report claiming Blue Sky shares were overvalued and worth $2.66 in their opinion.
As the report quickly disseminated through the Australian market, shares began to fall and the stock was down 13.4% to $10.40 before going into a trading halt.
Shares returned from trading halt this morning
Yesterday evening Blue Sky published a response to Glaucus’s claims and this morning held a teleconference to alleviate investors’ concerns.
However, the response from Blue Sky and teleconference this morning have done little to calm investors nerves after the stock resumed its sell-off.
Shares starting to rise from their low
One positive for Blue Sky is that shares have bounced off the intra-day low of $7.51 to now be trading at around $8.44.
Shareholders will no doubt be hoping this rally continues.