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The a2 Milk Company Ltd (Australia) (ASX: A2M) share price has gained 36% in the last three months. Strong demand out of China for its infant formula products and favourable broker notes have been largely responsible for this gain. Whilst I think a2 Milk would be a great long-term buy and hold investment, I would suggest investors hold out in hope of a pullback before starting an investment.
The Bellamy’s Australia Ltd (ASX: BAL) share price is up 36% during the period despite its disastrous acquisition of Camperdown Powder last month. Although the market has overlooked this latest drama, I believe investors would be better off avoiding Bellamy’s for the time being. At least until it secures another CNCA-licenced canning agreement that will allow it further access to the lucrative China market.
The Bubs Australia Ltd (ASX: BUB) share price has been on fire in the last three months, rising a staggering 235%. A series of supply agreements both at home and in China have been behind the incredible rise of its shares. Whilst I think these agreements have positioned the company for potentially explosive earnings growth, I would suggest investors hold off an investment until sales data shows that the company is making progress in both markets. |
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