Bellamy's Australia Ltd (ASX: BAL) shares are expected to emerge from a month-long suspension in trading later this week.
On Friday 13 January, shares of the infant formula maker are expected to return to active trading on the ASX following a voluntary suspension announced before Christmas. The company requested a suspension while it entered negotiations with its suppliers and formulated financial forecasts.
The eventual return of Bellamy's shares will follow an announcement by the company last week which revealed the Black Prince Private Foundation (a 14.48% holder of Bellamy's shares) had requested a general meeting to remove four independent non-executive directors.
Chairman Rob Woolley said he and fellow directors considered the proposal not to be in the company's best interests.
Foolish takeaway
Regardless of what happens to the financial forecasts and supplier agreements when Bellamy's shares return to the market it appears uncertainty will linger over the company for some time.
Given uncertainty is the definition of risk for many investors, I would not be surprised to see the Bellamy's share price fall meaningfully below its last traded price of $6.68. With potential class actions, profit downgrades, regulatory concerns and management uncertainty I think investors would be better off looking for other ASX stocks in 2017.
