The A2 Milk Company Ltd (ASX: A2M) share price had a slightly happier ending. After a bouncy trading day, the ASX 200 dairy company enjoyed a 0.4% finishing boost to close on Friday at $4.90 a share.

However, the past week overall has not been kind for A2 Milk shares. The company started the week at $5.06 a share. This means that A2 shares have gone backwards by more than 3% over this week.

Much of this negative sentiment appeared to flow on from the announcement the company made on Wednesday.

This informed investors that the US Food and Drug Administration (FDA) was "deferring further consideration for an enforcement discretion to import infant milk formula (IMF) products into the United States". That includes A2 Milk, as well as any other aspirant.

The US is currently facing a severe shortage of baby formula products. Investors had hoped that A2 Milk would be granted FDA approval to ramp up baby formula exports to the country.

Its fellow dairy company Bubs Australia Ltd (ASX: BUB) made some progress in May. But Wednesday's announcement made it clear that this wouldn't be happening any time soon for A2 Milk.

A2 Milk shares miss out, but not so for this competitor…

So the A2 Milk share price seems to have lucked out in this regard. But the same can't be said for another of A2 Milk's competitors.

Australian Dairy Nutritionals Group (ASX: AHF) is a minnow compared to A2 Milk, with a market capitalisation of just under $40 million (compared with A2's $3.62 billion at present).

But Australian Dairy has something A2 doesn't. That would be an FDA application still under "active review". According to an ASX release put out today, the company has stated the following:

Contrary to certain media articles which have suggested that all pending applications to the United States Food and Drug Administration (FDA) for accelerated approval to sell infant formula in the United States have been paused, the Board of Australian Dairy Nutritionals Group… is pleased to advise that the FDA has confirmed that AHF's FDA application in relation to its future Gradulac Gentle infant formula range remains under active review.

We understand the FDA sent out a deferral letter to many applicants whose application will not be progressed at this time however AHF did not receive this letter and the FDA has confirmed our application is still under active review.

Like A2, Australian Dairy also produces A2 dairy products, in this case organically. So it is interesting to see Australian Dairy have its application to the FDA get an "active review", where A2 Milk did not.

Whatever the reasons for this situation, it has certainly put a dampener on the A2 Milk share price's trading week this week.

The post The A2 Milk share price has had a tough week. Could this other ASX dairy company cash in? appeared first on The Motley Fool Australia.

This is a big deal, because the company aims to reposition itself to becoming a supplier of the organic dairy market, shifting away from the commoditized non-organic market. CEO Mr Peter Skene has stated that this is "the first significant step in making the company a major player in producing and distributing organic premium-quality branded foods".

Australian Dairy Farms currently only has a modest share in the in the traditional milk market- however the company believes that there is a major market opportunity in manufacturing these organic, specialty products. The company will have vertical supply chain and control in a high value, high barrier to entry market.

This is a smart strategic decision as non-organic milk prices have been on the decline for the last 15 years, while consumers are continually purchasing more organic items than ever before. This shift in corporate governance makes Australian Dairy Farms a stock worth checking out.

The post Why Australian Dairy Farms Group (ASX: AHF) surged last week appeared first on The Motley Fool Australia.

The two companies were engaged in a legal dispute that centred on the use of the term 'A2' on milk products.

The a2 Milk Company accused Lion Group of misleading consumers by claiming its milk contained the A2 protein.

The a2 Milk Company stated that Lion's milk brands had not clearly specified that its milk also contained the A1 protein as the true nature of Lion's milk was only made clear on the back of its containers.

The a2 Milk Company has enjoyed success with its product branded as a healthier alternative to regular milk that offers consumers a range of benefits by eliminating the A1 protein.

In one such example, the company announced last month that it had conducted a trial in China involving 600 adult Han Chinese with self-reported lactose intolerance and found that consumption of a2 Milk resulted in "improvements in gastrointestinal symptoms when they consumed milk containing only A2 beta".

The a2 Company's product has been a hit with consumers and has gained a reported 10 per cent of the Australian market share to the detriment of its rivals as it continues to make inroads in China and elsewhere.

The a2 Company's success is reflected in its share price which has gone up by more than 200 per cent over the past year and is expected by some analysts to keep further with one broker recently targeting its share price to hit $8.85.

Shares in the milk company are now trading at around $7.36, up from $2.23 a year ago, while other ASX listed dairy companies like Australian Dairy Farms Group (ASX: AHF) and China Dairy Corp Ltd (ASX: CDC) have watched their share prices plunge.

The Lion Group (apparently threatened by a2 which has likely seized a chunk of their market share) has launched a cross-claim arguing that the health benefits of A2 were, at best, exaggerated.

The conflicting nature of Lion's claim did not go unnoticed by the court when the companies met to lay out their claims in September.

But all that is in the past.

The parties have mutually agreed not to proceed with their cases against each other, according to a2.

"The terms of the settlement are confidential," a2 announced.

"The parties are very satisfied with the outcome and will remain focused on building and maintaining the strength of their individual brands."

The post The a2 Milk Company Ltd (Australia) resolves Lion legal dispute appeared first on The Motley Fool Australia.

Gains are being posted across most sectors, with just the energy and materials sectors in negative territory at this point today. There have been many stand out performances, but here are four that I have picked out:

Australian Dairy Farms Group (ASX: AHF) shares have rocketed over 18% to 22.5 cents today after it announced that its Camperdown Dairy Company subsidiary had secured shelf space in over 220 Woolworths stores in Victoria. Considering the current trend of consumers supporting local dairy farmers, this could prove to be significant for Australian Dairy Farms moving forward. Thanks to the deal and the growth of its Farmers Own products, management expects it will result in more than doubling the production and sales of milk at Camperdown Dairy Company.

Australian Dairy Farms shares are still down over 36% year to date.

MotorCycle Holdings Ltd (ASX: MTO) shares are speeding higher by 12% to $3.26 thanks to the release of a profit update this morning. Due to a strong performance management advised that it now expects net profit after tax to come in ahead of its $6.9 million prospectus forecast by 10% to 15%. Even after the strong gains today, I believe Australia's largest motorcycle dealership could be a great long-term investment thanks to the increasing number of motorcycle riders in Australia.

MotorCycle Holdings shares have now risen by 63% since their $2 IPO in April.

Orthocell Ltd (ASX: OCC) shares have surged 16% to 39.5 cents despite there being no news out of the junior biotechnology company. Today's gain is likely to be attributable to a positive report in The Australian over the weekend that praised the company. It went on to say that its products are game-changing and will "revolutionise treatment for hundreds of thousands of patients with tendon, cartilage and soft tissue damage." With a market cap of around $25 million, this could be one to keep a close eye on.

Orthocell's share price has risen by over 40% in the last 30 days.

Woolworths Limited (ASX: WOW) shares have climbed over 7% to $24.05 after the retail giant announced an operating review to tackle underperformance and return the company to sustainable operating growth. The new operating model is designed to drive improved performance and will see 1,000 staff moved out of the group office. A further 500 positions are to be cut from the support office and the supply chain. It will also close 30 underperforming stores and has placed 34 more stores on watch. Judging by the rampant buying of its shares today, the market reaction to these tough decisions has been very positive.

Woolworths shares are still down by 1% so far in 2016, despite today's gains.

The post Here's why these 4 ASX shares are storming higher today appeared first on The Motley Fool Australia.

All we hear about is bank shares crashing, the price of oil is plummeting, and our miners are getting pummeled. But, what if we're not looking in the right places.

Instead of focusing on BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and National Australia Bank Ltd. (ASX: NAB), why not focus on a whole bunch of good news stories about shares that have had an amazing growth spurt over the past 3 months.

Some of them you'll recognise, and some you won't, but take some time to read a little about them as you might just find some great value opportunities.

Here they are, 10 shares that have grown by a minimum of 15% to 148% in the past 3 months.

(Source:Commsec)

Farm Pride Foods Ltd

Farm Pride produces cage, barn, and free range eggs and egg products. The company operates more than 6 farms and sources eggs from across Australia to process and pack approximately 8 million eggs every week. Its Keysborough site has egg processing plants that turn shell eggs into value-added egg products for supply into the food service industry.

a2 Milk Company Ltd (Australia)

a2 Milk produces and supplies a2 brand milk and milk related products. Products include Liquid Milk, Infant Formula and other dairy products like cream and yoghurt. a2 Milk is pure dairy milk which comes from cows specially selected to produce a2 beta-casein protein rather than A1.

BWX Ltd

BWX manufactures and sells beauty and personal care products. The company also manufactures beauty and personal care products for third party customers. Products include Sukin, DermaSukin, Uspa, Edward Beale & Renew Skincare. BWX sells its products through its wholesale distributor network, direct to wholesale pharmacy customers, and through specialty beauty retail outlets.

Australian Dairy Farms Group

Australian Dairy Farms is a farm owner and operator which produces fresh milk for sale to milk processors. The group basically operates three farms. The Brucknell Farms accommodate a total of 1,508 dairy livestock comprising an annual average of 935 milking cows and 483 calves and heifers. The company has also announced contracts for two other farms, known as Ignatios Farm, Glenfyne, and Brucknell No 3 Farm.

Metcash 

Metcash Limited is a wholesale distributor which supplies dry grocery, perishable and general merchandise to IGA, Foodland, FoodWorks and Lucky 7 (convenience) stores. The company also distributes liquor products to Australian Liquor Marketers.

Pental Ltd

Pental manufactures and distributes home care and personal care products including soaps, detergents, bleach and other fast moving consumer goods. It supplies its own brands including Country Life, Natural Selections, Sunlight, Velvet, Knights Castile and Lux Flakes, together with the sale of icon brands such as Jiffy Firelighters, Softly premium wool wash, Huggie fabric softener, Country Homestead wool mix, Sureguard moth and silverfish repellent, Hi Speed iron cleaner and Close Up and Aim toothpastes.

Bellamy's Australia Ltd

Bellamy's produces a range of organic food and formula products for babies and toddlers. It offers over 30 baby and toddler products though supermarket chains, pharmacy chains and independent stores. Products include baby formula, baby food pouches, dry cereals, teething rusks, pasta, fruit snacks and fruit bars.

Treasury Wine Estates 

Treasury is a global wine company with a portfolio that includes wine brands: Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate and more. The company owns over 11,000 hectares of vineyards, with more than 3,000 winemakers, viticulturists, sales, distribution and support staff. Treasury's wines are sold in more than 70 countries around the world.

Freedom Foods Group 

Freedom Foods is a diversified food company operating in the Health and Wellness sector. The company provides a range of products to meet specific dietary or medical conditions including allergen free (i.e. gluten free, wheat free, nut free) products. Other products include a range of canned seafood covering sardines, salmon and specialty seafood, and a range of UHT (long life) food and beverage products including liquid stocks, soy, rice, almond and dairy milk beverages.

Wesfarmers 

Wesfarmers is a diversified business, operating supermarkets and department stores.The company is best known for its ownership of retail giants Coles, Bunnings, Officeworks, Target and Kmart.

The post These 10 growth shares crushed the market over the last 3 months appeared first on The Motley Fool Australia.

Urbanise Ltd (ASX: UBN) shares climbed more than 10% in morning trade to hit 75 cents after the cloud-based Software-as-a-Service property management specialist announced its first New Zealand clients. However, no numbers were provided as to the value of the deal, which made today's share price surge somewhat surprising. At the time of writing shares are trading flat, although the company's business model means it is one to watch as it retains an exciting outlook.

Adacel Technologies Limited (ASX: ADA) is another software specialist that services the global aviation industry primarily in air traffic control software and technologies. This is a niche space, where the company has been growing fast with shares up 13% to a record high of $2.58 today as the high-flyer continues to announce new client wins alongside growing revenues. Profit before tax is expected to climb 50% this financial year.

Australian Dairy Farms Group (ASX: AHF) shares are up 12.7% to 40 cents as the company continues to benefit from the wild excitement over businesses in the dairy-based foodstuffs sector. As the ASX's only listed dairy farmer its strategy is to aggregate high quality dairy farms in Victoria and elsewhere, with the recent announcement of an $11 million acquisition of a dairy company which has certification for rapid clearance of fresh milk into China.

Farm Pride Foods Ltd. (ASX: FRM) shares are up 9% to $1.22 despite the company releasing no news to the market as the farmer and egg supplier continues to receive strong investor support alongside other agricultural businesses. The company's earnings have been growing steadily and the business remains leveraged to growing demand for eggs in the retail sector.

The post Why these 4 ASX shares are soaring today appeared first on The Motley Fool Australia.

Here's why:

Kina Securities Ltd (ASX: KSL) lost 5% to $1.09 in continuing volatility as investors are uncertain what to make of this recently listed, purely Papua New Guinean-focussed stockbroker, lender, and wealth manager. While Kina does carry additional sovereign and currency risks compared to local businesses, it also operates in a market growing more rapidly than the Australian one.

Kina further has a Tier One capital adequacy ratio of 31% (regulatory minimum 8%) and earns a net interest margin of 8% on its loans. These attributes are significantly higher than those enjoyed by Australian market-leader Commonwealth Bank of Australia (ASX: CBA), for example, and are enough to make Kina worthy of closer investigation.

Australian Dairy Farms Group (ASX: AHF) crashed 21% to $0.355 in what represents possible profit taking after yesterday's 67% increase. Other dairy producers – who are in vogue right now because of the attractiveness of their target Chinese market – also fell in today's trade, making profit taking look like a distinct possibility. Investors should remain cautious about how much potential growth the market is factoring in to these companies, before buying when prices have been soaring.

Slater & Gordon Limited (ASX:SGH) shares fell 3.5% to $0.83 as investors continue to weigh up the implications of management's recent withdrawal of profit guidance as well as an ongoing ASIC investigation and potential regulatory changes in the UK. I wrote an article on the company – scheduling for publishing on Sunday – containing links to our earlier coverage of the company through the past six months, which may prove a useful starting point for readers looking to learn more.

EVOLUTION FPO (ASX: FPO) lost 4.5% today after the value of gold slumped overnight, although shares remain up 130% for the year. Shares in other gold miners like Western Areas Ltd (ASX: WSA) and Alacer Gold Corp – CDI (ASX: AQG) also fell on the news. Gold remains a contentious investment idea as some argue rising US interest rates increase the appeal of investments other than gold – thus reducing the appeal of (and demand for) gold.

The post Here's why these 4 shares crashed on the market today appeared first on The Motley Fool Australia.

At lunchtime, shares of the a2 Milk Company, Australian Dairy Farms and Bellamy's were 3.2%, 20%, and 3.7% lower, respectively, despite no company-specific news being released.

So what: The share prices of dairy producers like those above have been on a tear in late 2015.

Vitamins producer Blackmores Limited (ASX: BKL) and infant formula maker Bellamy's were the first to tap into the unprecedented demand from Chinese consumers locally and abroad. Now, even agricultural businesses like Bega Cheese Ltd (ASX: BGA) and Capilano Honey Ltd (ASX: CZZ) have surfed the rippling waves of success caused by Bellamy's and Blackmores.

Now What: Could the swift and deep falls in the aforementioned companies' share prices in the past 24 hours be a sign of things to come in 2016? I don't know.

But the walls of sharemarket history are splattered with the effects of bubbles and busts. From individual shares, to sectors, industries, and markets more broadly.

Therefore, investors must always conduct their own due diligence and have a reasonable basis for buying into any share, especially the most popular shares.

Indeed, it's your responsibility to yourself to have a reasonable basis for buying a share and to differentiate 'potential' from 'reality'. For example, each of these companies above possess the potential to justify recent price rises, but whether or not they'll actually scratch the surface of their opportunity set is another question altogether.

The post A2 MILK FPO NZ and Australian Dairy Farms Group shares get slammed appeared first on The Motley Fool Australia.

A number of shares particularly outperformed:

Australian Dairy Farms Group (ASX: AHF) soared 36% to $0.45 after the group announced a major acquisition that will create Australia's first listed, vertically integrated dairy company. The acquisition is expected to more than double the company's anticipated Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) in the 2017 financial year.

Lifehealthcare Group Ltd (ASX: LHC) shares rose 9.7% to $3.29 on no news, perhaps echoing the optimism felt by the broader ASX in recent days. In an article written before the market opened, I opined that Lifehealthcare could be a solid small-cap addition to portfolios at prices of around $3, although it looks like investors will have to be patient if they want to buy in at that price.

Select Harvests Limited (ASX: SHV) gained 4% to $8.48 as investors seek opportunity in the almond grower, whose share price is down 25% in the past six months. Select Harvest is currently working to secure its supply chain by constructing a biomass boiler and steam turbine power plant which will help power the company's processing facilities in Victoria.

AP Eagers Ltd (ASX: APE) continued its strong performance today, rising another 4.5% to be up 103.5% in the past 12 months. It's been a great result for shareholders, and driven by performance; net profit before tax was up 29.5% to $59.5m, while the dividend also rose 33% to 12 cents per share as of the six months to 30 June 2015.

A subsequent acquisition announced in November is expected to lift net profit before tax by a further $18 million per annum – it's no coincidence shares gained 20% since November as well.

The post Here's why these 4 ASX shares smashed the market today appeared first on The Motley Fool Australia.

The strong gains have come after the company announced a binding agreement to acquire the Camperdown Dairy Company (CDC), an established dairy processing business, from Aussie Farmers Direct. Australian Dairy Farms will fork out $11 million for the business, funded by cash reserves and bank facilities, and this will create the ASX's first vertically integrated dairy company as a result.

CDC has a growing blue-chip customer base and processes Woolworths Limited's (ASX: WOW) "Farmers Own" brand of premium milk in Victoria. It's also one of only a small number of Australian dairy companies with China Inspection Quarantine (CIQ) certification for the rapid clearance of fresh milk into China.

That puts the business in a good position to benefit from the growing demand in China for Australian-produced dairy products, alongside Bellamy's Australia Ltd (ASX: BAL) (which produces infant formula) and the New Zealand-based A2 MILK FPO NZ (ASX: A2M).

According to the release, Camperdown's milk processing facility is located near Australian Dairy Farms' six dairy farms which are located in south western Victoria. The company believes the acquisition will create significant margin expansion opportunities and synergies while it "has the potential to more than double AHF's anticipated (earnings before interest, tax depreciation and amortisation, or EBITDA) in the 2017 financial year."

The post Why Australian Dairy Farms Group shares have more than tripled in price appeared first on The Motley Fool Australia.

But it wasn't all great news for every stock. These five took a pummelling…

GI Dynamics Inc (ASX: GID) was smashed down 68.9% to 4.2 cents. The medical device manufacturer looks on increasingly dangerous ground, after reporting it would prematurely terminate one of its clinical trials and in a second blow, revenues had more than halved in the last quarter. You can read our full coverage here.

Unilife Corporation (ASX: UNS) sank 25.4% to 44 cents – after rising 33.3% yesterday. The biotech stock released its quarterly report today and it seems clear that the company was going to run out of money next quarter. That was until they signed a deal with two investors, Lincoln Park Capital and Cantor Fitzgerald, which could bring in up to US$70 million over time but dilute existing shareholders.

Australian Dairy Farms Group (ASX: AHF) fell 10.5% to 17 cents. The company announced that it was acquiring an additional farm in the South Western dairy region of Victoria today, but declined to release financial details until next week. The company expects to see strong positive operating cashflow in the next two quarters, but perhaps shareholders were expecting this quarter to be positive as well.

Uranium miner Paladin Energy Ltd (ASX: PDN) fell 8.9% to 20.5 cents, but shares rose strongly yesterday. Management announced that executive pay would be slashed to further cut costs, which the market liked, but it may be too little too late. Paladin has been operating with too high costs for many years, destroying shareholder value and needs more than executive pay cuts to make it investment grade.

Alexium International Group Ltd (ASX: AJX) fell 8% to 69 cents. The company also released its quarterly report today, which included upbeat commentary from management. Somehow, investors weren't happy though, perhaps expecting more than the company delivered. Alexium holds a number of patents to develop flame retardant treatments for synthetic fabrics which looks very promising – one reason why the company's shares have soared 655% in the past 12 months.

The post 5 stocks sinking on the ASX today appeared first on The Motley Fool Australia.

My colleague Owen Raskiewicz covered the news in more detail here, but what is surprising is that A2 Milk had only been listed on the ASX since 31 March 2015. That news alone suggests Australian and New Zealand dairy and dairy products companies might not last long if they list on the ASX.

That obviously raises questions for Australian Dairy Farms Group (ASX: AHF), which has only been listed since October 2014 and Bellamy's Australia Ltd (ASX: BAL), which listed in August 2014.

Are they on predator's watch lists?

In my view, they very well could be.

In 2013 Canadian dairy giant Saputo engaged in a 3-way battle with Bega Cheese Ltd (ASX: BGA) and dairy Cooperative Murray Goulburn for control of Warrnambool Cheese & Butter Factory Co. (ASX: WCB). Saputo eventually triumphed – if you could call it that – after gaining control of 87% of the company, just shy of the 90% it needed to achieve compulsory acquisition. Warrnambool's shares still trade on the ASX – but you'd be hard pressed to find many sellers. Lion still holds around 10% of Warrnambool shares, and declined to sell out to Saputo.

Since 2013, Bega's shares have gone close to doubling, and it could still be on the radar of a number of companies seeking entry to Australia and New Zealand's dairy sector. Likewise Australian Dairy and Bellamy's.

Bellamy's mainly provides organic milk products for babies and toddlers and exports its products into the vast market of China.

Australian Dairy currently owns 7 dairy farms in South Western Victoria, having started with just 2 farms when it listed on the ASX in October 2014. Interestingly, both Murray Goulburn and Warrnambool operate close to that region of Victoria.

Production has grown from 10 million litres per year, with a recent acquisition of 3 farms doubling production to 20 million litres per annum.

The big attraction for investors in these companies is the high-quality milk and dairy products they produce and the potential to export some produce as well as for domestic consumption.

It's also no surprise that cooperative Murray Goulburn is seeking a listing on the ASX while demand for dairy investments are high. But the cooperative is likely to make a takeover of the company difficult by having two classes of shares, with public shares having no voting rights. This is a similar structure to Fonterra ORD UNIT (ASX: FSF), the world's largest dairy exporter, based in New Zealand.

What is particularly pertinent for Australia's dairy producers is the recently signed Free Trade Agreement (FTA) with China. Tariffs of up to 20% on dairy products will be eliminated within 4 to 11 years, making exported milk and dairy products more competitive in China. And Australian and New Zealand dairy products already have a high standing in China thanks to the very high quality.

You might want to keep your eye on these dairy producers.

The post Are Australian Dairy Farms Group and Bellamy's Australia Ltd takeover targets? appeared first on The Motley Fool Australia.