Why Bubs Share Price Rose 11% Today


Bubs Australia Ltd [ASX: BUB] rose over 10% in early morning trade today.

The company produces infant formula, organic baby food and goat dairy products. While their products are sold in the Australian domestic market, they also target China’s high growth. Bubs is also investing in future growth initiatives.

What’s the news behind this price move?

This morning the company released its regular cash flow report as well as providing an update on the businesses performance.   

Bubs has booked more gross revenue in the first half of the 2019 financial year than it did for the entire 2018 financial year, although sales into China were up very strongly percentage wise last year.

What now?

While Bubs has posted good gains in revenue, it’s still cash flow negative, but that’s not unusual for a company in this stage of its life cycle. However, it does make the stock a more speculative proposition.

If you’re interested in this stock, one idea is to include Bubs on a watchlist and watch further developments while you continue studying on the business and prospects. This is an introductory piece only.

This article is not an endorsement of Bubs Australia or a recommendation to buy and sell. It’s an observation of their positive news from today.

Keep a watch for further announcements to gauge the progress of the company from here.

Best regards,

Callum Newman Signature

Callum Newman,
Editor, Profit Watch

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