Why the Bubs Australia Ltd share price is climbing again

Shares in goats milk and organic baby formula business Bubs Australia Ltd (ASX: BUB) are up 8% to 76 cents today after the group announced it has completed the acquisition of NuLac Foods Ltd.

Bubs claims that the deal secures exclusive milk supply from Australia’s largest herd of milking goats and helps Bubs in its ambitions to become a vertically integrated retailer where it has control over all parts of its supply chain from the farm to the supermarket.

To fund the acquisitions Bubs raised $20 million at 60 cents per share, with shares changing hands for 76 cents on the last trading day before the Christmas holidays. The group reported total revenues of $1.48 million for the quarter ending September 30 2017, which represents growth of 25% on the prior quarter.

Other baby formula businesses listed on the ASX that have recently moved to secure their supply chain on the back of growing demand include Bellamy’s Australia Ltd (ASX: BAL) and the a2 Milk Company (Australia) Ltd (ASX: A2M).

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tom Richardson owns shares of A2 Milk. The Motley Fool Australia owns shares of A2 Milk. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!