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Why Clover Corporations Is Down 2% Today?

Stuart Lucy

Stuart Lucy is an Investment Specialist at the Australian Stock Report, and has gained exposure to funds management and investment banking throughout his career. He draws on this experience to provide macroeconomic commentary and actionable investment insights to clients. Stuart is responsible for writing reports, is involved in delivering Macrovue webinars and provides general advice to our members on portfolio construction. Stuart currently holds RG146 General and Securities qualifications.

Clover Corporations (ASX: CLVis down 2% today, on the back of the coronavirus epidemic. Newly recorded cases around the world sends panic amongst investors and this has resulted in a global sell-off. Clover Corporations is one example, whose share price has fallen drastically, but their products are still desired by families, children, and adults.

 

 

Clover Corporations is an Australian company that distributes Omega 3 and Omega 6 through infant formulas and tuna oil encapsulations pills. Omega 3 has proven to help with brain development, cardiovascular health, and visual acuity. Omega 3 or their tuna oil is delivered by their patented microencapsulation technology whereby the tuna oils are converted into a stable dry powder form. The dry powder form protects the ingredients from oxidation. The technology has given them a natural competitive advantage over other rivals by allowing them to extend the shelve life of their products. This is critical for the business because it allows consumers to store the product over a long period of time, without having to worry about when to purchase the Omega 3 products again. 

Additionally, the microencapsulation technology allows them to increase the dosage of DHA Omega 3. This is significant for the company because new regulations in Europe and China has demanded that the requirements of Omega 3 DHA dosage to be higher. Overall, the company has enjoyed success through the increasing demand for baby formulas in Asia, the EU, and the US market. The company has recently entered a partnership in Melody Dairies which would increase the milk drying capacity and therefore meet the consistent demand for Clover Corp’s products.


 

Disclaimer:


This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.
ASR has no position in any of the stocks mentioned.

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