When things go wrong for a company, they usually get worse before they get better – if they ever do get better.

So it is with Bellamy’s Australia, the organic milk company whose shares crashed before Christmas after it revealed its sales in China had sagged.

It’s a cautionary tale for investors who are tempted to snap up shares in a company in the hope they’ve got a bargain.

Once a market darling with a sharemarket value of more than A$1 billion based on hopes it could tap into growing Asian demand for quality Western food, Bellamy’s said in early December that it had suffered a “temporary volume dislocation” in China and its share price halved.

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