Will A2 Milk FPO NZ be the Bellamy's Australia Ltd of 2016?

A2 MILK FPO NZ (ASX:A2M) is firing on all cylinders, will it be 2016's Bellamy's Australia Ltd (ASX:BAL)?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The A2 Milk FPO NZ (ASX: A2M) share price is up 60% in the past two trading days.

Source: Yahoo! Finance
Source: Yahoo! Finance

In fact, over the past three months, shares of A2 Milk have risen an impressive 148%. Meanwhile, the Bellamy's share price, which is up nearly 400% since the beginning of the year, has continued to rage higher.

Since launching its shares on market slightly more than 12 months ago, Bellamy's is now up almost 920%, with the organic infant formula maker's share price hitting an all-time high of $14.65 this morning.

Is 2016 the year of A2 Milk Limited?

Bellamy's rivals, including A2 Milk, recognise the enormous potential in China's infant formula market and are making inroads. Earlier this year, the a2 Milk range expanded into Platinum infant formula, and its success thus far has been outstanding.

Last week, the company's share price surged more than 24% in a single day after it announced its infant formula products would enable the company to exceed profit expectations by more than 50%.

The a2 Milk Company CEO and Managing director, Geoffrey Babidge, said, "The Company has recently increased the supply of a2 Platinum® infant formula to our customers however we continue to experience a level of out of stocks on shelf."

He added, "The strong trading performance advised today provides further evidence of the increasing appeal of the a2 Platinum® brand in Australia and China and the growth potential in additional markets in the future."

While investors are reminded to always conduct their own due diligence prior to making any investment, if the a2 Milk Company continues to see such strong levels of demand for its products leading into 2016, it could be another very good year for shareholders.

Motley Fool writer/analyst Owen Raszkiewicz has a financial interest in Bellamy's Australia.  Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Bellamy's Australia. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »