The Wattle Health Australia Ltd (ASX: WHA) share price has continued its strong run and is up 5% to 63 cents in morning trade.
This means the health and wellness food products company's shares have now gained over 72% since this time last month.
Why are its shares higher?
The good news certainly keeps rolling in for Wattle Health. During the last 30 days the company has announced supply agreements with Metcash Limited (ASX: MTS) and Tesco Lotus for its infant formula products, as well as a strategic investment in CNCA licenced manufacturer Blend and Pack.
This morning the company announced that it has entered into a non-binding heads of agreement with Organic Dairy Farmers of Australia, Mason Ventures, and Niche Dairy to undertake a commercial due diligence for the establishment of a joint venture for the production of organic powdered milk.
Whilst this could be a big positive for the company, it is worth noting that Wattle Health will only hold a 2.5% interest in the joint venture should it go ahead. So it isn't necessarily a game-changer for the company at this stage.
But should you invest?
As I said before, as impressed as I am with its progress during the last few weeks, I still feel it may be a touch too soon for an investment.
The company has certainly positioned itself perfectly to take on the likes of a2 Milk Company Ltd (Australia) (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL) in the lucrative China market, but I would prefer to hold off and wait until sales data backs up its potential.
So for now I would suggest investors add Wattle Health to their watchlist and keep a very close eye on its progress.
