Bellamy's Organic: When not enough is too much

Too much demand is a problem many companies would love to have. Bellamy’s Australia (ASX: BAL), a supplier of infant formula which listed on the ASX a little over a year ago, would appear to be in that fortunate position.Certainly the sharemarket seems to think so. Recent news that Bellamy’s is having trouble keeping up with demand for its products saw the share price jump 5% today.The company, which reported a profit of $9m in 2015, now has a market capitalisation of more than $850m. That equates to an eye-watering historical price-earnings ratio of 94. The stock is up more...

Too much demand is a problem many companies would love to have. Bellamy’s Australia (ASX: BAL), a supplier of infant formula which listed on the ASX a little over a year ago, would appear to be in that fortunate position.

Certainly the sharemarket seems to think so. Recent news that Bellamy’s is having trouble keeping up with demand for its products saw the share price jump 5% today.

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