Shares in troubled infant formula maker Bellamy’s jumped without an announcement today to explain the sharp rise.
At the close, they were up 11.8% to $6.04.
This is still a long way from the year high of $15.38 but the shares have gained 30% over the past week.
While there was no official announcement today, the Tasmanian-based company has had some notable good news recently.
Among them, Janchor Partners, a Hong Kong-based hedge fund which was an early backer of Chinese online marketplace Alibaba, took a significant holding in troubled infant formula maker Bellamy’s in April.
Jon Ho, who holds 20% of Janchor, then joined the board of directors.
Bellamy’s spectacular growth via China suddenly stalled late last year following regulatory changes.
However, the latest reports from China suggest a delay in implementing stricter cross-border e-commerce regulations.
The fallout from falling sales claimed the scalp of CEO Laura McBain, stripped millions of dollars from the market capitalisation and sparked a shareholder revolt which ended with a change in the board of directors.
The company in February posted a 47% drop in first half profit to $7.236 million following problems with sales of its organic infant formula in China.
Bellamy’s now expects full year revenue to be in the range of $220 million to $240 million, at best flat on 2015 and well below previous analyst expectations of about $330 million.
Business Insider Emails & Alerts
Site highlights each day to your inbox.