The Bellamy's Australia Ltd (ASX: BAL) share price has been amongst the worst performers on the market on Melbourne Cup day.
In early afternoon trade the organic infant formula company's shares are down 4% to $11.94.
Why are they lower?
With no news out of the company or broker notes to speak of, it appears as though profit taking is behind today's decline.
It isn't just Bellamy's which is under pressure. Fellow infant formula shares a2 Milk Company Ltd (Australia) (ASX: A2M), SYNLAIT FPO NZX (ASX: SM1), and Wattle Health Australia Ltd (ASX:WHA) are also notably lower.
The only one that didn't appear to get the memo was the Bubs Australia Ltd (ASX: BUB) share price. It is 9% higher at the time of writing.
Should you sell your Bellamy's shares?
Considering its incredible share price rally this year I would suggest that investors consider taking at least a little bit of profit off the table.
The same arguably applies for all infant formula-related shares. The industry has been one of the hottest on the market in recent months and has driven the majority of these shares to all-time highs.
This has left them trading on sky-high multiples and puts them in danger of sharp declines if they fail to live up to the market's increasingly high expectations.
One key event that I expect to make or break the industry this year will be the a2 Milk annual general meeting on November 22. I would suggest any investors looking at buying infant formula shares hold off an investment until then.
