A2 Milk Company Ltd (ASX: A2M) shares climbed 7.65% higher in March despite the current bear market. The S&P/ASX 200 Index (ASX: XJO) slipped 21.18% lower last month as coronavirus concerns spooked investors.
Given a2 Milk shares have been on a bullish run, is there still time to buy in?
Why a2 Milk shares climbed higher in March
It hasn't been smooth sailing for shareholders but they'll have to be happy with the recent gains. While many ASX 200 shares are now in the bargain bin, a2 Milk shares have more than held their own. There have been a couple of key factors that I think have boosted a2 Milk's value in 2020.
First of all, the New Zealand dairy group announced it would expand its a2 brand into Canada. In partnership with Agrifood Cooperative, a2-branded liquid milk will soon be on Canadian shelves. International expansion could open up more sales channels and diversify revenue outside of Asia-Pacific.
Secondly, the recent panic buying is likely to have a knock-on effect. We've seen Aussies rush to supermarkets run by Coles Group Ltd (ASX: COL) and others to stock up on supplies. While that could boost supermarket shares higher, a2 Milk shares could also receive a boost.
More buying means the Aussie supermarkets need more supply. That could see the Kiwi dairy group's shares climb higher in 2020 and that's certainly been the case in 2020.
Is there still time to buy?
a2 Milk shares are now trading at $16.60 per share, which isn't far from a 52-week high. That might make you wary of buying but I still think there's an opportunity. Even once the coronavirus pandemic passes, I can't see a2 Milk plummeting lower, as demand would reduce back to a relatively constant level. The recent Canadian deal could also be a real bonus for earnings and it is proving to be a good hedge against the bear market.
