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The Bellamy’s Australia Ltd share price has had a great few weeks

The Bellamy’s Australia Ltd (ASX: BAL) share price has been on a great run, jumping around 25% higher in the past month to trade at $6.70.

Last month the baby formula business announced it was raising around $60.4 million in capital to help it renegotiate a supplier contract and buy a manufacturing facility.

It’s a far cry from the dark days of last 2016 and early 2017 when Bellamy’s shares were suspended for a number of weeks, the share price falling as low as $3.65.

Investors have latched on to the idea that the company’s woes are repairable, despite the recent dilution of the capital raising and the forecasts for earnings before interest and tax (EBIT) loss of between $9 million and $14 million in the second half of 2017.

Excluding one-off costs, the underlying second half result is expected to be positive $16.5 million to $20.5 million.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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