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2017 was a fantastic year for infant formula shares

It certainly has been an unforgettable year for owners of infant formula shares.

This group of shares, led by A2 Milk Company Ltd (ASX: A2M), finished the year with significant gains.

Here’s how they fared in 2017:

  • The A2 Milk Company Ltd share price ended the year with a gain of 261%
  • The Bellamy’s Australia Ltd (ASX: BAL) share price finished with a gain of 103% based on the price its shares opened at on January 11 following its suspension.
  • The Bubs Australia Ltd (ASX: BUB) share price put on a gain of 670% for the year after hitting the ASX boards at 10 cents per share early in 2017.
  • The Wattle Health Australia Ltd (ASX: WHA) share price finished the year 815% higher than its 20 cents per share listing price in March.

What’s next?

Whilst it is unlikely that 2018 will provide investors with as strong gains as this, I do believe that these companies are positioned well to profit from rising demand for Australian/New Zealand infant formula in China.

My pick of the group continues to be a2 Milk. I believe the brand’s reputation in China, regulation changes, its distribution network, and strong management team have placed it perfectly to capture even more market share in 2018.

This could make it well worth considering as an investment even though its shares trade at a significant premium over the market average today.

Missed these infant formula gains? Then check out these high-flying blue-chip shares.

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.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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