Bellamy's Australia Ltd (ASX: BAL) stock went into a trading halt session on 12 December 2016 and was expected to resume trading from 14 December, 2016. Instead, the group requested for voluntary suspension of its securities effective 14 December 2016. BAL stated that the suspension was much needed to manage continuous disclosure obligations and will provide updated announcement on trading conditions’ impact on the financial results. The suspension will last until the earlier of the release of the company announcement or commencement of normal trading from 21 December 2016.
 
BAL for the period, 01 July 2016 to 20 November 2016, had reported a 24% growth for the unaudited revenue to $93 million. The growth was driven by a successful Singles Day result, expansion of China on-line and off-line distribution, and ongoing underlying growth in Australia. However, the growth momentum recently got impacted by temporary volume dislocation in China on the back of regulatory changeover and the flow-on effects of restructuring the route-to-market in China impacting from late 1Q17, as well as by strategic investment in promotions. Moreover, EBIT margin is now expected to be moderately below 20% depending on sales channel mix with planned investment to underpin long-term, sustainable growth, the company said. The latest hit to the sales growth momentum has raised concerns over fulfillment of its continuous disclosure obligations, and whether and to what extent the company was aware of the sales performance ahead of the 02 December 2016 business update. Moreover, class action law firm, Maurice Blackburn reported that they have launched an investigation whether the infant formula maker violated any disclosure obligations ahead of the weak trading update and pressure from China. There are reports that the group is set to face two more class actions after ACA Lawyers and Slater & Gordon announced about respective investigations.
 
BAL stock crashed over 38.6% in last one month as at 09 December 2016. We had given a “Hold” recommendation on the stock at the price of $6.56 on 06 December 2016. It will be crucial to watch the developments once the trading resumes.

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