Short Term Trading - Weekend Lounge: 30 Jun - 2 Jul, page-73

STTCOMP BUB, FA Long

Baby formula (goat) & baby organic food company

Share price: 25c
Market cap: $60m
Cash @31/03/2017: $5m

Listed on the ASX in January, raised $5.15 million to bankroll its local and Chinese expansion plans.

Newly appointed chief executive Nicholas Simms quickly signed deals with Coles, Costco and Chemist Warehouse, and then came the Kaola deal that would give it access to 15 million Chinese consumers who shop on the Amazon-like platform.

Recent developments show some great potential to be No.3 infant formula stock on ASX following A2M (Market cap: $2.7b), BAL (MC: $688m, peaked at $1.5b).

Reviews on Kaola.com,  97.9% positive reviews.

One was mentioned out of stock in May; one bought in May with manufactured date 2 February 2017.

Few screenshots:



Full reviews:
http://www.kaola.com/product/28689....sult&zp=page1-0&ri=Bubs&rp=search#mainBtmWrap

BUB also signed distribution agreement with Brilite to sell their products over 2,000 mother and baby stores across China.

Brilite will assist Bubs Australia to secure regulatory approvals for Bubs products in China
Brilite owns USA brand Bright Beginnings bovine infant formula and directly supplies over 2,000 ‘mother and baby’ stores in China.

Sydney 8 June 2017: Award winning specialist producer of infant milk formula and organic baby food Bubs Australia Limited (“Bubs”) has entered into an agreement with Brilite Nutritionals (Shanghai) Co., Ltd (“Brilite”) as its exclusive partner and an authorised distributor in China, with a primary focus on mother and baby stores.

Announcing the agreement, Founder and Executive Director, Kristy Carr said: “This is a ground breaking agreement for Bubs which will ultimately see our products sold through over 2,000 mother and baby stores across China, backed by a reputable partner with an already strong and trusted physical presence in the infant formula market.”

Commenting on the agreement, Chief Executive Officer, Nicholas Simms said: “The signing of our partnership with Brilite empowers Bubs with a distribution capability well beyond traditional models that other businesses have typically employed in China. It represents a significant milestone in our strategy to build relationships within the key mother and baby physical retail channel. “In the short term, Brilite will provide material assistance with finalising regulatory approvals for all of Bubs infant formula and organic baby food products. Longer term, underpinned by Brilite’s comprehensive data, we will collaborate on developing new products for the market,” said Mr Simms.

Subsequent to regulatory approvals, Bubs range of products will be immediately trialed in key provinces in People’s Republic of China. Importantly, Brilite’s existing marketing, sales and customer service teams will provide comprehensive support to Bubs as it establishes itself in the China market,” Mr Simms said.

BUB is still at early stage, if management team continue focusing on Chinese market, would be good for long term prospective.

DYOR.
Have a good weekend all.