Baby formula star stock Bellamy’s Australia Ltd (ASX: BAL) is at the top of the S&P/ASX 200 gains list at the time of writing – up 4.9% to $17.75 – off the back of deals with three businesses to move closer to its goal of converting all conventional Australian dairy farms to organic.
Bellamy’s has made an initial $5.5 million investment with Fonterra Shareholders’ Fund (ASX: FSF) to develop an organic milk pool in Tasmania – signing up to take 20 million litres of milk from the pool annually with first rights over the additional volume.
A new multi-year agreement with Australian Consolidated Milk will see Bellamy’s guaranteed access to its supply as ACM constructs a new processing plant in Girgarre, Victoria.
And Bellamy’s has formalised an agreement with Tatura Milk Industries Limited to incorporate fresh organic milk into its production process.
Bellamy’s is an unstoppable leader in the baby food and formula space, paving the way for A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB) who are also finding some success in the niche.
Bellamy’s shares are up an impressive 148% on its $7.14 share price at this time last year.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor Carin Pickworth 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 Scott Phillips.
- 3 speculative small cap shares brokers like – and you might too – November 12, 2018 1:36pm
- The Steadfast Group Ltd (ASX:SDF) share price has taken a dive today – November 12, 2018 1:22pm
- The Elders Ltd (ASX:ELD) share price is up 10% on FY18 results – November 12, 2018 12:47pm