It has been another disappointing day of trade for the Wattle Health Australia Ltd (ASX: WHA) share price.
Despite the release of yet another announcement, the baby food and infant formula company's shares are down over 5% to $1.10 in afternoon trade.
This means they have lost over a third of their value since this time last month.
What was today's announcement?
This afternoon Wattle Health announced that it has signed an agreement with Quality Brands International Direct (QBID) that will provide it with access to major export markets via e-commerce platforms.
According to the release, management believes this is an important and strategic milestone which will allow the company to "take advantage of the lucrative e-commerce market" and further strengthen its "strong retail distribution strategy within those markets."
What is QBID?
The release explains that QBID is a Melbourne based company providing access to major export markets via an e-commerce model.
Its main focus is the China market where it represents more than 20 brands and operates dedicated brand stores on major e-commerce platforms including TMall, Kaola, and JD.com.
It also builds brand support through popular Chinese social media platforms including WeChat and Weibo.
Should you invest?
I'm relieved to see that the market has not reacted to this announcement.
In my opinion it was unnecessary and seems overly promotional. Which history has taught us to be very cautious with.
In light of this, I would suggest investors stay well clear of Wattle Health until it is generating meaningful revenues and letting the numbers do the talking.
Until then, I would focus on infant formula shares that are delivering results such as A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL). Especially after recent share price weakness means they are trading at fairer prices today.
