However, the Jatcorp share price has since lost much of that ground and is up 3.7% trading at 2.8 cents at the time of writing.

Jatcorp share price higher on Chinese approval 

Jatcorp has been busy making a pivot into new lines of business alongside its traditional infant formula segment. This is in response to a new COVID-19 environment that has seen minimal sales through daigou channels and a lack of international tourism.

On Wednesday, the company announced that its first product, Poupin Silky Brighten Revitalising Serum, has been approved by the Chinese Government authority, CFDA, for sale in China through off-line channels, including local department stores and specialty cosmetics stores. Jatcorp also intends on selling its products through major online platforms, including the most popular social media web influencer sales channels. 

In today's announcement, Jatcorp also notes that its subsidiary, Sunnya Ltd, has successfully opened its Neurio milk powder range to the Singapore market. The sale of products will now occur in Singapore's local pharmacies and through online platforms in Indonesia, Malaysia and Philippines. 

Falling Chinese sales drive pivot

Jatcorp follows a similar narrative as the A2 Milk Company Ltd (ASX: A2M) with COVID affecting its core infant formula business. 

In the company's 1H21 results, its revenues slumped from $30.6 million in 1H20 to $13.5 million in 1H21. Its decreased revenue was caused by lockdown measures, closed daigou stores and the paused flow of Chinese students and tourists into Australia. Despite its revenues falling by more than 50%, its loss after tax was relatively stable at $2.5 million compared to the $2 million in 1H20. 

Today's announcement reiterates the company's strategic decision to diversify its business and seek new opportunities to increase revenues. Jatcorp managing director Wilton Yao commented on the COVID-19 headwinds saying:

To meet this challenge, and considering the negative effect of tensions between Australia and China, the board has taken necessary actions to manage under the difficult situation.

JAT has moved part of its plant-based meat operation into China, appointed new contract manufacturing in New Zealand and other countries and signed agreements with Chinese state-owned companies and large private enterprises to improve the stability of the business operation.

Meanwhile the board is continuing to seek new business opportunities to increase the operational scale and sales revenues.

The post Pivoting from infant formula, what's next for the Jatcorp (ASX:JAT) share price? appeared first on The Motley Fool Australia.

Jatenergy is a specialist in Australia–China trade and is focused on growth within the Australian health and wellness consumer goods export industry. Its activities include the origination, development and manufacture of a range of consumer products, and the sale of client and in-house products, primarily in Australia and China.

In particular, Jatenergy has developed a range of lactoferrin dairy products. The company claims that lactoferrin plays an important role in modulating the immune system, both systemically and in the gastrointestinal tract.

What did Jatenenergy announce?

Jatenergy reported high demand in China for its Neurio ranges of dairy products, which contain lactoferrin, since December 2019. Jatenergy claims that this demand appears to be driven by the emergence of the coronavirus.

Sales of the Neurio lactoferrin brands in January 2020 totalled $3.44 million. This compares to sales of $407,000 in January 2019. In the 6 months ended 31 December 2019, sales of all Neurio products totalled $9.4 million.

Jatenergy reports that demand for its lactoferrin brands from its distributors in China is continuing, with orders for February and March at levels well in excess of previous periods. Orders so far for February 2020 are $2 million, compared to $1,099,917 in February 2019. For March 2020, orders so far are at $1.8 million, compared to $388,714 in March 2019.

JAT's ANMA factory has also reported an increase in orders from its customers that produce dairy products containing lactoferrin. ANMA says it will increase its production to meet these orders and the increased level of orders which it expects to receive over the next few months.

It is unclear whether the movement of people in China will prevent the sales and distribution of the Neurio products to consumers.

Shanghai retail store on track to open

Despite the disruption in China caused by the coronavirus, Jatenergy anticipates that the opening of its Maternity and Infant Boutique, announced in December 2018, will still open in Shanghai in March 2020. 

The post 1 ASX micro-cap share with increased sales due to coronavirus appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they have sunk lower:

The Jatenergy Ltd (ASX: JAT) share price has tumbled almost 8% lower to 8.5 cents. On Wednesday the infant formula company's shares rocketed 53% higher following the release of a sales memorandum worth an estimated $8 million. In addition to this, two more memorandums were signed today. However, it is worth noting that these are not legally binding and are not guaranteed to lead to sales. In light of this, I would suggest investors disregard them until they become binding.

The Mesoblast limited (ASX: MSB) share price is down 6% to $2.08 despite there being no news out of the regenerative medicine company. Considering its shares have been on fire over the last couple of weeks, I suspect that today's decline can be attributable to profit taking from some investors. Prior to today Mesoblast's shares were up 23% in the space of just two weeks.

The Pushpay Holdings Ltd (ASX: PPH) share price has continued its slide and is down a further 5.5% to $3.14. The payment solutions company's shares tumbled lower on Wednesday following the release of its half year results. Although those results were within its guidance range, I suspect that some investors had been counting on further outperformance. Once the dust settles I think Pushpay could be worth a look.

The St Barbara Ltd (ASX: SBM) share price has fallen over 3% to $4.16. Almost all Australian gold miners are in the red today as investors rotate away from safe haven assets following the favourable result of the U.S. Midterm elections. The S&P/ASX All Ords Gold index is down 1.9% today.

The post Why these ASX shares are sinking lower today appeared first on The Motley Fool Australia.

The infant formula company's shares finished the day a whopping 53% higher at 9.2 cents.

Why did Jatenergy's shares rocket higher?

Investors were fighting to get hold of the company's shares after the release of announcement on Wednesday afternoon.

That announcement revealed that the company has signed a memorandum with Guangzhou Eastern Bridge Import & Export Co Ltd at the China International Import Expo in Shanghai.

According to the release, Eastern Bridge intends to import Jatenergy's Golden Koala infant formulas and milk powders, Neurio products, and Cobbitty Country products.

The total order quantity is estimated to be worth a total of $8 million in 2019.

What is Eastern Bridge?

The release explains that Eastern Bridge imports a wide range of consumer and commercial goods from around the world and distributes them across China through online and offline channels.

Its online channels span websites, apps, cross-border ecommerce shops, and Wechat sales specialists. Whereas its offline retailers include the likes of GrandBuy, Kwangchow Friendship Store, Guangdong Jinkang Chain Pharmacy, and Meijoybest.

Given its sizeable distribution network, investors may believe that the order quantity could grow significantly in the future if things go well with this initial order.

Should you invest?

I wouldn't suggest investing on the back of this announcement. In fact, I would be very cautious due to the fact that this is only a memorandum and not a legally binding contract. This means there is no guarantee that it will ultimately go ahead.

Overall, instead of risking money in Jatenergy, I think investors ought to consider established players such as A2 Milk Company Ltd (ASX: A2M) Bellamy's Australia Ltd (ASX: BAL). Especially considering their shares are trading at attractive levels again following recent declines.

The post Why Jatenergy Ltd (ASX:JAT) shares rocketed 53% higher appeared first on The Motley Fool Australia.

These three speculative shares are clearly in favour with investors right now, are they the real deal?

The Eden Innovations Ltd (ASX: EDE) share price finished the day 18% higher at 11 cents on Thursday. This latest gain means that the clean energy company's shares have now rallied an incredible 175% in the space of just four weeks. Investors have been buying its shares in a frenzy ever since the company won a US$525,000 Federal contract for its EdenCrete admixture product in the United States. The company followed this up with an announcement this morning advising that a joint evaluation trial with the Metropolitan Atlanta Rapid Transit Authority found that the use of EdenCrete will provide the Authority with significant savings by reducing both the life cycle cost and the frequency of maintenance. While I do like the product and believe this trial could lead to further contract wins, I feel its $140 million valuation is getting excessive.

The Food Revolution Group Ltd (ASX: FOD) share price stormed 7.5% higher to 14.5 cents despite there being no news out of the juice company. This latest gain means that Food Revolution's shares have more than doubled in value in just over two months. The company recently announced a strategic investment and Chinese distribution deal with Careline Australia. The distribution deal aims to grow the company's sales from ~$35 million to up to $500 million within five years. While such lofty goals are often best taken with a pinch of salt, I do think its product range has a lot of promise. In fact, I'm a big fan of their drinks and regularly purchase its kombucha products from my local Wesfarmers Ltd (ASX: WES) operated Coles supermarket. I think it is well worth keeping a close eye on Food Revolution given its relatively low price to sales ratio.

The Jatenergy Ltd (ASX: JAT) share price rocketed 26% higher to 7.8 cents on Thursday. This means that the energy-cum-infant formula company's shares have doubled in value since this time last week. The catalyst for this gain was a surprising quarterly update which revealed a sudden surge in cash receipts. Jatenergy saw its cash receipts from sales increase from $320,000 in the June quarter to a massive $10.7 million in the September quarter. But another metric that also rocketed was its product manufacturing and operating costs. They increased to $15.4 million, leading to a net operating outflow of $5.5 million. While its sales growth looks impressive, I would approach this one with caution. Especially given its limited cash balance and sizeable cash outflows forecast.

The post These speculative shares rocketed higher today: Are they the real deal? appeared first on The Motley Fool Australia.

Three small cap shares that have caught the eye with solid gains on Thursday are listed below. Here's why they are racing higher:

The Credible Labs Inc CDI (ASX: CRD) share price has jumped 6% to $1.01 following the release of the U.S. consumer finance marketplace operator's latest quarterly update. In the third quarter Credible Labs grew its quarterly Closed Loan Volume to an all-time high of US$355 million. This was a 56% increase on the prior corresponding period and an 89% lift on the previous quarter. During the quarter the company's user accounts reached a cumulative total of 1,086,000, compared to 910,000 at the end of June.

The Jatenergy Ltd (ASX: JAT) share price has rocketed 21% higher to 7.5 cents. The infant formula company's shares have been on fire this week after the release of its quarterly update. That update revealed a sudden and major uptick in its performance during the last quarter. Jatenergy saw its cash receipts from sales increase from $320,000 in the June quarter to a massive $10.7 million in the September quarter. Though it is worth noting that product manufacturing and operating costs rocketed to $15.4 million during the quarter, leading to a net operating outflow of $5.5 million. This leaves Jatenergy with little cash in its bank account, which could mean a capital raising will be necessary in the near future.

The Zip Co Ltd (ASX: Z1P) share price has rebounded from yesterday's heavy selloff with a 3% gain to 95.5 cents. Yesterday its shares were hammered after the likelihood of a Senate inquiry into payday lending, debt collection, and buy now pay later platforms increased. This morning Zip responded to the media reports by stressing that its business model does not rely on late payment fees or customers not being able to afford their repayments to drive revenue. It also emphasised that there are no hidden fees and all consumer costs are transparent, upfront, and clear. As such, management "believes it is very well placed to satisfy any potential increased regulation with little or no disruption to business."

The post These 3 small cap ASX shares are racing higher on Thursday appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they have tumbled lower:

The Berkeley Energia Ltd (ASX: BKY) share price fell 30% to 33.5 cents before being placed in a trading halt. The trading halt was requested so that the uranium company could prepare a response to recent media articles relating to its Salamanca mine. According to CNBC, the Spanish government has decided not to deliver the permits necessary to open the European Union's only open-cast uranium mine.

The Jatenergy Ltd (ASX: JAT) share price is down over 10% to 6.2 cents. On Tuesday the infant formula company's shares doubled in value after the release of its quarterly update. According to the release, the company saw its cash receipts from sales increase from $320,000 in the June quarter to $10.7 million in the September quarter. However, product manufacturing and operating costs rocketed to $15.4 million during the quarter, leading to a net operating outflow of $5.5 million.

The Reject Shop Ltd (ASX: TRS) share price has plunged 35% lower to $2.89 following the release of a disappointing trading update. For the first 15 weeks of FY 2019, the discount retailer has seen comparable store sales fall 2.4% compared to the prior corresponding period. This follows a severe deterioration in its sales over the last 8 weeks.

The St Barbara Ltd (ASX: SBM) share price has dropped 3% to $3.87. While most gold miners are sinking lower today as investors move back to risk on assets, St Barbara has fallen more than most following the release of its quarterly update. Investors appear disappointed that St Barbara reported consolidated quarterly gold production of 98,547 ounces in the first quarter of FY 2019 compared to 119,436 ounces in the fourth quarter of FY 2018.

The post Why these 4 ASX shares have tumbled lower today appeared first on The Motley Fool Australia.

The infant formula company's shares were up as much as 100% at one stage before closing the day 81.5% higher at 6.9 cents.

Why did Jatenergy's shares double in value today?

This afternoon Jatenergy released its quarterly update and revealed a significant increase in cash receipts.

According to the release, the company saw its cash receipts from sales increase from $320,000 in the June quarter to $10.7 million in the September quarter.

This was notably higher than the $8.7 million estimate that management had provided in August. Management has put this down to synergies between recent acquisitions starting to prove themselves.

Jatenergy did, however, report a net operating outflow for the quarter of $5.5 million. This was due to product manufacturing and operating costs of $15.4 million during the quarter compared to just $446,000 in the prior quarter.

The cash outflow is expected to rise to $16.8 million in the next quarter. Jatenergy finished the quarter with a cash balance of $1.6 million.

Should you buy Jatenergy shares?

As there is no mention of these cash flow figures being audited, I'm going to presume that they are unaudited. In light of this, I would suggest that investors take these sales figures with a pinch of salt.

Furthermore, with its cash balance at such low levels, I suspect a capital raising will be needed in the near future to fund its operations. This could act as a major drag on its share price if it is able to raise funds.

Overall, I think investors should continue to avoid Jatenergy's shares and focus on the shares of fellow infant formula companies A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL) instead.

The post Why Jatenergy Ltd (ASX:JAT) shares doubled in value today appeared first on The Motley Fool Australia.

Three shares that have missed out on today's declines due to being suspended or halted are listed below. Here's why they aren't trading today:

Freedom Insurance Group Ltd (ASX: FIG)

The shares of this embattled insurance seller were placed into a trading halt this morning. The company requested the trading halt whilst it prepares an announcement regarding the outcome of its strategic review. The company expects its shares to remain halted until the commencement of trade on Thursday. Freedom launched its strategic review last month after the release of a report by ASIC regarding direct life insurance sales. As a significant proportion of Freedom's upfront commission revenue is derived from the sale of funeral insurance, changes to a number of lead sources would be required to continue to meet the expectations of the regulator. I'm not confident that Freedom will be able to successfully overhaul its business model, so I'm eager to see what it has planned.

Jatenergy Ltd (ASX: JAT)

The shares of this infant formula hopeful have been involuntarily suspended by the ASX after it failed to lodge the relevant periodic report for the period ended June 30 by the due date. Management had forewarned that this would be the case, so it hasn't been a surprise. It advised that the initial consolidation into public company format of the accounts of new subsidiaries acquired during the year has taken longer than expected. In addition to this, the company has experienced a significant change in the accounting personnel. While this is a reasonable excuse, I still expect better from public listed companies.

Syrah Resources Ltd (ASX: SYR)

This embattled graphite miner has placed its shares into a trading halt this morning. According to the notice, management requested the trading halt to allow it to assess the damage from a fire that occurred overnight at the Primary Classifier Screen at Balama. Thankfully no injuries were sustained, but damage to the screen deck, pipe, and electrical equipment has been noted. An assessment of the repair time and the impact on production is now being undertaken. Last week the miner's production output was impacted by later than expected sourcing and fitting of filter cloths, which are routine consumables. With its shares trading close to their 52-week low, it seems some shareholders have understandably had enough of its endless disruptions.

The post Why these ASX shares are in trading halts appeared first on The Motley Fool Australia.

At one stage the infant formula hopeful's shares were up as much as 10% to 4.5 cents.

Its shares have since given back a good portion of these gains and sit 5% higher at 4.3 cents ahead of the market close.

Why did Jatenergy's shares rocket higher today?

This afternoon the company announced that its 51% owned subsidiary, Golden Koala Group, has completed the manufacture of a container load of newly formulated English label infant, follow-on, and toddler formula.

According to the release, these products are now on sale in Australia through local supermarket and pharmacies, and to Chinese families through daigou groups and cross-border and online-to-offline sales channels.

While this doesn't seem like much to get excited about, it is worth noting that there had been concerns that there may be production problems after its manufacturer Nutritional Choice Australia fell into administration. So, seeing a container load of product will no doubt be quite a relief for shareholders.

But it isn't all positive. Strangely, the market appears to have overlooked the second part of today's announcement.

Management has advised that the company and AustAgri Pty Limited have mutually agreed to terminate the supply agreement they entered into in August.

That five-year supply agreement was to allow AustAgri to sell the Golden Koala infant formula product in mainland China, Hong Kong, Macau, and Taiwan, as well as through e-commerce platforms upon receipt of its CFDA accreditation.

The company advised that over the five-year period AustAgri must order a minimum amount of its 900g tins equating to sales of approximately $98 million.

At the time I questioned the viability of the deal given the limited track record of AustAgri, which had only been on the Australian Business Register since March of this year. It appears I was right to be doubtful.

Though, it is worth noting that the two parties have agreed to hold discussions regarding a possible replacement arrangement.

What now?

While I can't blame investors for trying to find the next A2 Milk Company Ltd (ASX: A2M) or Bellamy's Australia Ltd (ASX: BAL), I wouldn't count on it being Jatenergy unfortunately.

The post Why infant formula hopeful Jatenergy Ltd (ASX:JAT) surged higher today appeared first on The Motley Fool Australia.

Four shares that have acted a drag on the market today are listed below. Here's why they have started the week deep in the red:

The AVZ Minerals Ltd (ASX: AVZ) share price has fallen almost 11% to 9.8 cents despite there being no news out of the lithium-focused mineral exploration company. AVZ Minerals' shares have come under pressure in recent times over concerns that its giant mineral resource may be located too far from ports in central Africa to be a viable operation.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price has dropped 3% to $14.53 after ResMed Inc (ASX: RMD) filed complaints in the U.S. International Trade Commission in relation to two of its mask ranges used to treat sleep apnea. This morning Fisher & Paykel Healthcare advised that it plans to contest the patent allegations made against it. If ResMed wins it could prevent the import of the products into the United States.

The Jatenergy Ltd (ASX: JAT) share price has plunged almost 20% lower to 5.4 cents. Today's decline could be in relation to its preliminary full year result which revealed a loss of $1.2 million or news that China is making changes to its e-commerce laws. I have concerns that the latter could impact the sales of less established infant formula companies like Jatenergy.

The Retail Food Group Limited (ASX: RFG) share price has continued its decline and is down 10.5% to 51 cents. This morning UBS released a broker note declaring the embattled food and beverage company as a sell with a price target of 50 cents. Although its full year results were in line with expectations, it doesn't appear to believe that things will get easier for the company in FY 2019. I would agree with this sell recommendation.

The post Why these 4 ASX shares have started the week in the red today appeared first on The Motley Fool Australia.

Although the A2 Milk Company Ltd (ASX: A2M) share price has rebounded from its early decline and is almost 1% higher at $11.60 now, many of its peers are sinking notably lower.

Here is the state of play in the industry right now:

• The Bellamy's Australia Ltd (ASX: BAL) share price is down 4.5% to $10.47.
• The Bubs Australia Ltd (ASX: BUB) share price has fallen 5.5% to 67.5 cents.
• The Jatenergy Ltd (ASX: JAT) share price is 13.5% lower at 5.8 cents.
• The Wattle Health Australia Ltd (ASX: WHA) share price is down 4% to $1.22.

Why are these infant formula companies being crushed today?

Today's declines appear to be in response to a new China e-commerce law that was announced late on Friday.

According to the Global Times, the new law aims to make the fence tighter against unethical sales practices on the internet. It requires that domestic e-commerce websites guarantee that consumers' rights are protected in online business transactions.

This means that if a consumer suffers from health problems as a result of a product bought online, e-commerce platforms will be held accountable if they didn't properly audit the business qualifications of the sellers on the platform.

E-commerce website operators will also be obliged to record and store product information as well as transaction information on their platforms.

The new e-commerce law will come into effect from January 1 2019. Further implementation guidance, including implications in respect of the cross border grace period, is expected in the coming months.

What now?

While I'm surprised to see Bellamy's shares dragged lower on the news, I'm not overly surprised to see the likes of Bubs, Jatenergy, and Wattle Health tumble.

Now that e-commerce platforms can be held accountable for issues, I fear some could be unwilling to stock less established brands that they can't guarantee the safety of.

Time will tell whether this does impact sales, but for now I would suggest investors wanting exposure to the space stick with Bellamy's and a2 Milk Company.

The post Infant formula companies sink lower on new Chinese e-commerce laws appeared first on The Motley Fool Australia.

The energy and infant formula company's shares have since given back some of these gains but are up 13% to 7.1 cents at the time of writing.

Why did Jatenergy Ltd's shares rocket higher today?

This afternoon the company released a market update following the recent completion of its acquisition of 50% of Green Forest International.

According to the release, as the terms of the acquisition provided Jatenergy with board control, the company has now consolidated 100% of Green Forest's accounts from August 11.

In light of this, the directors have provided an estimate for Jatenergy's consolidated revenue and earnings for the June and September 2018 quarters.

In the June quarter sales are expected to be $577,000 with a net loss of $651,000 and in the September quarter sales are expected to rise to $8.7 million with a net loss of approximately $238,000.

Management advised its September quarter estimate is based on projections for sales of $16.1 million during the quarter, adjusted to reflect the acquisition completing on August 10. After which it expects sales to be equal or greater in the December quarter.

Should you invest?

While this would be a surprisingly impressive jump in sales if its estimates are accurate, management hasn't explained where these sales are coming from. This has left me feeling a touch sceptical.

In addition to this, it is a bit of a concern that even on $8.7 million of sales the company is unable to make a profit.

Because of this, I would suggest investors stay clear of Jatenergy and fellow small cap infant formula companies such as Bubs Australia Ltd (ASX: BUB) and Wattle Health Australia Ltd (ASX: WHA) for the time being.

Instead, I would consider snapping up A2 Milk Company Ltd (ASX: A2M) after a recent pullback in its share price.

The post Why Jatenergy Ltd (ASX:JAT) shares rocketed higher today appeared first on The Motley Fool Australia.

This led to the energy-cum-infant formula company's shares closing the day almost 12% higher at 8.5 cents.

Why did Jatenergy's shares rocket higher?

Late this afternoon the company released an announcement relating to its 51% owned Golden Koala business.

According to the release, Golden Koala has entered into a supply agreement with AustAgri Pty Limited for its Golden Koala Premium Range Infant Formulas.

The five-year agreement will allow AustAgri to sell the product in mainland China, Hong Kong, Macau, and Taiwan, as well as through e-commerce platforms. Though, it is dependent on the company receiving CFDA accreditation for its infant formula.

AustAgri will have the exclusive right to distribute and sell the products in mainland China, but only non-exclusive rights in the other territories and e-commerce channels.

What is this worth to Jatenergy?

Potentially quite a lot. According to the agreement, over the five-year period AustAgri must order a minimum amount of its 900g tins. Based on this minimum order quantity, the sales over the period are expected to be approximately $98 million.

This will be guaranteed with a $1 million deposit, half of which is due with 7 days of the agreement being signed and the other half within 7 days of CFDA accreditation being granted.

Should you invest?

While this seems to be a great deal for the company, it doesn't necessarily guarantee that AustAgri will purchase $98 million worth of product over the five years. If the product simply doesn't sell, it appears that AustAgri can just walk away at the cost of its deposit.

Furthermore, AustAgri has a limited track record (if any), was only setup in March of this year, and according to the Australian Business Register, it isn't even registered for GST yet.

Because of this, I think investors should keep their powder dry and wait to see how the agreement impacts its sales in the future.

In the meantime, I would stick with A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL).

The post Why infant formula hopeful Jatenergy Ltd (ASX:JAT) rocketed higher today appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower 0.44% to 6,258.10
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 0.37% to 6,342.80
• AUD/USD at US 75 cents
• Gold at US$1,259.20 an ounce
• Brent Oil at US$77. a barrel

The best-performing ASX 200 share today was Bellamy's Australia Ltd (ASX: BAL), it went up 10% today with Citi issuing a positive broker note on the infant formula company.

IPH Ltd (ASX: IPH) shares went up 6% after Morgans issued a positive broker note on the intellectual property business.

Nearmap Ltd (ASX: NEA) was another share to do well today, it finished the day up 21% after reporting strong growth with its US business.

Real estate business Stockland Corporation Ltd (ASX: SGP) climbed 2.5% today after issuing profit guidance for FY18.

Infant formula business Jatenergy Ltd (ASX: JAT) shares are up 21% after securing a spot at an important baby expo in China.

The share price of natural beauty business BWX Ltd (ASX: BWX) fell by 3.9% after it confirmed a US business broker is commencing legal proceedings against it.

Pendal Group Limited (ASX: PDL) was the worst performer in the ASX 200 with it falling 7.5% after a disappointing funds under management update.

Finally, Nextdc Ltd (ASX: NXT) dropped by 3.7% after a negative broker note was issued.

Here are some of today's top stories:

• This ASX share is looking to profit from Facebook's privacy scandal
• Why Woolworths Group Ltd (ASX:WOW) may not have a clear run-up as supporters might think
• Summerset Group Holdings Ltd (ASX:SNZ) profit up 26%

The post ALL ORDINARIES finishes lower Tuesday: 8 shares you missed appeared first on The Motley Fool Australia.

But it isn't the biggest mover in the infant formula industry today. That honour goes to energy-cum-infant formula company Jatenergy Ltd (ASX: JAT) which has seen its share price rocket 24% to 9.2 cents.

Why are Jatenergy's shares rocketing higher?

Today's gain appears to be related to news that the company has secured exhibition space at the 18th Shanghai International Children Baby and Maternity Products Industry Expo later this month.

According to the release, Jatnergy has an 18 square metre exhibition space that will showcase the portfolio of products the company has been developing since the switch from energy to fast moving consumer goods trading.

Chief among them will be its partly owned Golden Koala infant formula range which it will be offering product samples of to visitors in the hope of attracting suppliers.

Management sees a lot of value in the trade fair. Stating that: "These trade fairs offer excellent brand exposure. More importantly, visitors are trade professionals looking for new products and new suppliers and planning to place orders."

Should you invest?

Jatenergy has signed a number of promising agreements recently with the likes of Cyclone E-Commerce and JD.com.

While this is undoubtedly a positive and the trade fair could prove to be a good strategy, I still think it is far too soon to invest in its shares.

After all, there's no guarantee that these distribution agreements or the trade fair will ultimately lead to a notable lift in sales any time soon.

Because of this I would suggest that investors continue to stay away from Jatenergy and stick to the companies that are already successfully selling infant formula products into the lucrative China market such as Bellamy's and A2 Milk Company Ltd (ASX: A2M).

The post Why infant formula small cap Jatenergy Ltd (ASX:JAT) rocketed higher today appeared first on The Motley Fool Australia.

Bellamy's share price slid about 18% last week after a broker note out of Goldman Sachs slashed its price target off the back of CFDA accreditation issues that could impact Bellamy's sales volumes in China.

But according to The Australian, Citibank believes "the long-term drivers of Chinese consumers preferring premium imported formula remain in place".

According to The Sydney Morning Herald, the US yesterday opposed a World Health Assembly resolution to encourage breastfeeding – bringing the baby formula vs breastfeeding debate to the forefront of the minds of the Western world.

Other ASX companies such as A2 Milk Company Ltd (ASX: A2M), BUBS Australia Ltd (ASX: BUB), Jatenergy Ltd (ASX: JAT) and Wattle Health Australia Ltd (ASX: WHA) have their cards stacked on the continued global reliance of baby formula for infant nutrition, with A2 having done especially well in the Chinese market beside Bellamy's.

The post Why this top broker still backs Bellamy's Australia Ltd (ASX:BAL) appeared first on The Motley Fool Australia.

Four shares that have defied the market and pushed higher today are listed below. Here's why they are climbing higher:

The Fluence Corporation Ltd (ASX: FLC) share price is up 2.5% to 40 cents. This morning the water treatment company announced that it has been awarded a contract to deliver an Aspiral smart packaged MABR technology solution in China. This project will consist of four Aspiral L5 units that will treat wastewater for the town of Baiceng.

The Iluka Resources Limited (ASX: ILU) share price has risen 4.5% to $11.20 after the mineral sands producer's shares were upgraded to a buy rating by Citi. According to the note, the broker has also increased its price target to $13.70 on the back of higher production expectations and the benefits of better pricing and favourable currency movements.

The Jatenergy Ltd (ASX: JAT) share price has rocketed 19% to 7.5 cents after the infant formula hopeful had its Sunnya's Neurio branded range of products approved for sale online to Chinese consumers on JD Global's cross border and JD supermarket platforms: JD.com and JD.hk. While this is a positive, it doesn't necessarily mean it will generate meaningful sales. I would stay clear of Jatenergy until it has a track record.

The Resolute Mining Limited (ASX: RSG) share price has surged 6% higher to $1.38. Although most gold miners have pushed higher today as investors move to risk off mode, Resolute has climbed more than most after a note out of Citi revealed that it has placed a buy rating and increased price target of $1.80 on its shares. The broker made the move after Resolute released an updated Syama definitive feasibility study which revealed lower operating costs and a longer mine life.

The post Why these 4 ASX shares have pushed higher today appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the week in the red:

The Fortescue Metals Group Limited (ASX: FMG) share price has fallen 2.5% to $4.38. The iron ore producer has come under pressure this week after low grade iron ore prices tumbled lower. According to Metal Bulletin, the 58% Fe Premium Index was down almost 1% to US$52.02 per tonne overnight. Once again, there appears to be more of an appetite for high grade ore than the low grade ore Fortescue mines.

The Jatenergy Ltd (ASX: JAT) share price has plunged 21% lower to 6 cents after dairy manufacturer Nutritional Choice Australia (NCA) was placed into receivership. NCA manufactures dairy products for sale in China and has an agreement with Jatenergy for its Golden Koala infant formula brand. Management insists that NCA is solvent and this is the result of an internal dispute. It expects NCA to meet its obligations under the manufacturing agreement in full and on time. Clearly some shareholders aren't convinced. Keep away from this one would be my advice.

The Orocobre Limited (ASX: ORE) share price is down almost 2.5% to $5.18. This morning a broker note out of Morgan Stanley revealed that its analysts have retained their underweight rating and lowly $4.25 price target on the lithium miner's shares. Morgan Stanley is known to be a lithium bear and has predicted sharp price declines in the future.

The Starpharma Holdings Limited (ASX: SPL) share price has given back some recent gains and is down 2.5% to $1.19. I suspect this decline is the result of profit taking after its shares rocketed higher on Wednesday. That gain was due to the company signing a major license agreement with Mundipharma for VivaGel.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

This has led to the market sinking notably lower today. At the time of writing the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is down almost 0.7%.

But one group of shares which have fallen more than most today are infant formula shares.

Here is the state of play in the industry at lunch:

The A2 Milk Company Ltd (ASX: A2M) share price is down over 3% to $10.53.

The Bellamy's Australia Ltd (ASX: BAL) share price has fallen 5.5% to $16.58.

The Bubs Australia Ltd (ASX: BUB) share price is down almost 4.5% to 89 cents.

The Jatenergy Ltd (ASX: JAT) share price is off 4.5% to 11 cents.

The Wattle Health Australia Ltd (ASX: WHA) share price is in a trading halt while it conducts a bookbuild for the shortfall under its entitlement offer.

Why are infant formula shares tumbling lower?

With no negative news out of these companies or broker notes that I'm aware of, I suspect that these declines are due to some investors taking profit off the table ahead of tonight's FOMC meeting.

After all, many of these shares have been strong performers this month. Prior to today the a2 Milk Company share price was up 10% in a week, the Bellamy's share price had risen 10.5% in the space of two weeks, and Bubs was up a sizeable 21% since the start of the month.

Should you buy the dip?

I think that these declines have presented investors with an opportunity to pick up shares in a2 Milk Company and Bellamy's at a better price. Though, I would only purchase shares if you were prepared to hold on for the long-term.

In the short-term I suspect that these infant formula companies could remain a touch volatile, but five years from now I feel very confident that demand from Asia will result in strong earnings growth that propels their shares significantly higher than where they stand today.

The post A2 Milk Company Ltd (ASX:A2M) and Bellamy's Australia Ltd (ASX:BAL) shares are sinking lower appeared first on The Motley Fool Australia.