What does Bellamy’s Australia Ltd do?
Bellamy’s Australia Ltd [ASX:BAL] produces organic food and formulas for babies and toddlers. Most revenue comes from operations in Australia, with products sold through supermarket chains, pharmacies and independent stores. However, the company continues to focus on expanding into the Chinese market; it has developed a Chinese website to try and access this market.
The company released its FY15 results on 21 August. The results were very good.
EBIT up 497%, net profit after tax up 617% and on it went. 2015 has been a year of record growth for the company.
That’s interesting, but what is the chart telling you?
What is the chart telling you?
I personally find it helpful to bring up a chart. Here’s the daily chart of BAL:
Can you see that the BAL share price continued to make a series of higher lows over the last four months? This is in stark contrast to the general market which has been sold down over the same period.
In light of that, it should not be a total surprise that the FY15 results were good. Or that the share price should now make another strong run.
What now for BAL shares?
Note how the share price has reacted to the FY results on 21 August. It is suggesting perhaps more positive news to come from this company, let’s wait and see.
You just have to watch it now; it has made quite a run. You could follow it; see if it forms another higher low.
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Research Analyst, Cycles, Trends and Forecasts