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Australian Stock Market
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Australia Sucks Offline
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Post: #64
RE: Australian Stock Market
One stock that I own (very small position size due to the high risk) that is worth a closer look and I have not mentioned in this thread before is Bubs Australia (ASX code: BUB). They produce baby products such as goats milk infant formula and baby porridges, etc.

https://www.bubsaustralia.com/collections/all

It is a highly risky and speculative company which is currently loss making.

It could go to zero or could be a 5 bagger (or more).

Its vertically integrated to some extent and after a recent(ish) acquisition owns Australia's largest herd of milk producing goats. So they produce the goats milk (in Australia) which goes into their goats milk baby formula. Goats milk is an upcoming trend because a lot of people who have sensitivities/allergies to cows milk based products are able to consume goats milk products without the same issues. Also its becoming trendy.

It currently has a market capitalization of less than $300 million (Australian dollars). It is rapidly growing sales and has especially strong momentum in the Chinese market. Just to give you an idea of how much upside their is if the company is successful in the next 5 years lets look at other companies for comparison. Synlait Milk which produces dairy products and infant formula (SM1) has a market cap of 1.87 billion (AUD), Bellamy's (BAL) which also produces infant formula (and other baby products) and sells heavily into China has a $2 billion (AUD) market cap. A2 Milk (A2M) which sells specialized milk based only on the A2 protein (instead of normal milk which has A1 and A2 proteins) also sells heavily into China and has a $7.2 billion (AUD) market cap. Blackmores (BKL) which sells vitamins and supplements and also sells heavily into China has a $2.6 billion dollar market cap. In China there is huge demand for dairy and vitamin products, etc from Australia and New Zealand as the locals do not necessarily trust Chinese made products and will pay a premium for stuff from Australia and NZ. Demand for these types of products in Australia is strong and steady (albeit not showing the rapid growth of China). So for companies in this space if they manage things right they can really do well.

Like I said before its a speculative play because its loss making has a limited history as a listed company and is subject to increased competition (it is to some extent still a commodity product) and changing/increased Chinese import regulations/taxes. This is on top of execution risk from a management team that while doing well has not yet fully proven itself due to the short track record.

However given its strong sales momentum, its balance sheet is in reasonable shape, its first mover advantage (in promoting the goats milk baby products), the distribution deals it has already signed in China and the fact that its partially vertically integrated (guaranteed supply and quality of goat's milk as well as better marketing proposition) it has reasonable chance of making a success of things.

Of course do your own research and if you decide to invest it should only ever be a very small (speculative) position.
(This post was last modified: 06-03-2018 04:20 AM by Australia Sucks.)
06-03-2018 04:17 AM
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Messages In This Thread
Australian Stock Market - Australia Sucks - 09-13-2016, 07:58 PM
RE: Australian Stock Market - Julio - 09-14-2016, 02:30 AM
RE: Australian Stock Market - TheFinalEpic - 09-14-2016, 06:13 PM
RE: Australian Stock Market - Kangaroo - 09-18-2016, 07:08 AM
RE: Australian Stock Market - BB1 - 06-06-2017, 05:23 PM
RE: Australian Stock Market - BB1 - 08-23-2017, 02:29 AM
RE: Australian Stock Market - BB1 - 12-22-2017, 12:38 PM
RE: Australian Stock Market - BB1 - 02-09-2019, 05:47 PM
RE: Australian Stock Market - BB1 - 07-15-2017, 12:43 AM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:47 PM
RE: Australian Stock Market - Justinian - 07-28-2017, 12:55 AM
RE: Australian Stock Market - Atticus - 01-01-2018, 07:07 AM
RE: Australian Stock Market - PK1098 - 01-01-2018, 05:11 AM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:21 PM
RE: Australian Stock Market - Cane Toad - 01-01-2018, 10:29 PM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:38 PM
RE: Australian Stock Market - Cane Toad - 01-01-2018, 11:00 PM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 12:02 AM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 05:48 PM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 06:13 PM
RE: Australian Stock Market - Tail Gunner - 01-03-2018, 03:39 PM
RE: Australian Stock Market - Cane Toad - 01-03-2018, 07:38 PM
RE: Australian Stock Market - Tail Gunner - 01-03-2018, 07:50 PM
RE: Australian Stock Market - Roardog - 01-10-2018, 09:40 AM
RE: Australian Stock Market - Tail Gunner - 01-10-2018, 11:07 AM
RE: Australian Stock Market - Roardog - 01-10-2018, 09:04 PM
RE: Australian Stock Market - Tail Gunner - 01-10-2018, 11:12 PM
RE: Australian Stock Market - Cane Toad - 01-12-2018, 06:26 AM
RE: Australian Stock Market - Tail Gunner - 01-12-2018, 11:25 AM
RE: Australian Stock Market - Tail Gunner - 01-12-2018, 11:38 AM
RE: Australian Stock Market - PK1098 - 01-01-2018, 03:22 PM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 12:36 AM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 01:37 AM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 02:45 AM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 12:45 PM
RE: Australian Stock Market - Mig Picante - 01-03-2018, 11:33 PM
RE: Australian Stock Market - Australia Sucks - 06-03-2018 04:17 AM
RE: Australian Stock Market - Bucephalus - 12-10-2018, 06:47 AM
RE: Australian Stock Market - Blue Streak - 11-19-2018, 07:12 AM
RE: Australian Stock Market - Mig Picante - 12-10-2018, 08:19 AM
RE: Australian Stock Market - Mig Picante - 12-10-2018, 06:35 PM
RE: Australian Stock Market - Blue Streak - 01-15-2019, 06:15 AM
RE: Australian Stock Market - Mig Picante - 02-11-2019, 08:47 AM
RE: Australian Stock Market - Mig Picante - 02-19-2019, 08:54 AM
RE: Australian Stock Market - BigTedSven - 02-21-2019, 02:33 AM
RE: Australian Stock Market - Mig Picante - 04-14-2019, 06:30 AM
RE: Australian Stock Market - TDevil - 04-14-2019, 07:29 AM
RE: Australian Stock Market - Tail Gunner - 04-19-2019, 12:24 AM
RE: Australian Stock Market - Mig Picante - 04-20-2019, 03:11 AM
RE: Australian Stock Market - Mig Picante - 04-21-2019, 04:06 AM
RE: Australian Stock Market - BigTedSven - 05-21-2019, 09:47 PM
RE: Australian Stock Market - BigTedSven - 05-21-2019, 09:48 PM
RE: Australian Stock Market - Tail Gunner - 05-21-2019, 10:00 PM
RE: Australian Stock Market - Bogart - 05-22-2019, 10:54 PM
RE: Australian Stock Market - Mig Picante - 05-24-2019, 07:16 AM
RE: Australian Stock Market - BB1 - 05-25-2019, 02:31 AM
RE: Australian Stock Market - outback - 05-25-2019, 02:33 AM
RE: Australian Stock Market - Mig Picante - 05-25-2019, 03:51 AM
RE: Australian Stock Market - BB1 - 05-27-2019, 06:38 AM
RE: Australian Stock Market - BB1 - 06-10-2019, 06:54 AM
RE: Australian Stock Market - UnW - 05-27-2019, 07:16 AM
RE: Australian Stock Market - Mig Picante - 06-04-2019, 08:36 AM
RE: Australian Stock Market - BalanceLife - 09-08-2019, 06:18 AM
RE: Australian Stock Market - Mig Picante - 09-24-2019, 07:05 AM

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