The Bubs Australia Ltd (ASX: BUB) share price is certainly having a strong finish to the week.
In late morning trade the infant formula and baby food company's shares are up almost 9% to 50 cents.
Why have its shares stormed higher?
Although there was no news out of the company today, as I mentioned recently, a sharp decline in its share price in recent weeks had left its shares trading close to what I deemed to be an attractive entry price for a buy and hold investment.
Judging by its share price gain today, I wasn't alone in thinking this way.
There's no doubt in my mind that Bubs has set itself up as well as it possibly can to take on the likes of a2 Milk Company Ltd (Australia) (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL) in the China market.
Agreements with Brilite Nutritionals and NetEase Kaola.com will put the brand in front of millions of Chinese consumers through mother and baby retail stores and online.
The only thing investors need to work out is whether the brand is strong enough to take on a2 Milk and Bubs and win over consumers.
After all, it is all well and good getting your product in front of consumers, but if they don't purchase it then you're not going to last very long.
Should you invest?
While I think the 42 cents to 45 cents level is a great entry point, due to the significant growth built into it share price, it is only really suitable for investors with a high tolerance for risk.
In light of this, I would suggest that any investment is restricted to just a small part of a portfolio.
