Wow, 243% in 5 months…
Yes, A2 Milk shares have gone up by 243% since we added them to our model portfolio on 31st August.
But what does this mean for you? Is it too late to get in on the action? We’ll let you know what we think in a minute, but first lets take a quick look at the background.
What’s Happened?
Since August A2 management has upgraded its profit guidance for 2016 on multiple occasions which has boosted investor sentiment. The upgrades have primarily reflected better than expected sales of its infant formula in China. Consumers have gone into an infant formula frenzy with fears that supermarket shelves are being emptied of milk formula by customers, often Chinese tourists, migrants or students — removing stock by the pallet-load to sell online at home at inflated prices. The company recently said retail stock shortages were continuing despite production volumes increasing, while demand was continuing to exceed supply....
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