Shares in vitamins maker Blackmores Limited (ASX: BKL) dropped 6% to $154 today, despite the business releasing no news to the market. Blackmores shares have gained a whopping 62% over just the last six months, with the company's financial performance in FY 2018 shaping up to be significantly better than the prior fiscal year.
At the end of 2015, Blackmores shares hit as high as $217 only to fall below $90 in August 2017, before speeding to today's price of $154. Evidently investors are struggling to value the business due to its leverage to volatile demand from Chinese consumers.
China is also a complex market where regulatory risk exists and the sales volumes of foreign consumer goods companies can vary widely over short time periods.
Today's price falls then are probably the result of profit taking after the stock enjoyed a hot run and ahead of its half-year results that are due to be handed in next month.
Management is still forecasting a full year profit above the prior year and the group's long-term outlook remains attractive given growing demand for its products across Asia in particular.
