5 great kids companies to invest in

Financial journalist and commentator on 3AW and Sky Business
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Key points

  • Assisted reproductive service company Virtus Health has done very well since its float in May 2013.
  • Nappy company Asaleo Care Limited (AHY), is also making inroads into the Australian market place.
  • Organic baby food provider Bellamy’s Australia Limited (BAL) has cornered a valuable section of the market and may still have further to run.

Having children can be an expensive proposition, as a young family finds itself with ramped-up spending, just at a time when one of them is out of the workforce. A potential consolation is to find some stocks that benefit from that spending. Here are five stocks leveraged to the spending on juvenile humans.

Conception

Assisted reproductive services does not sound like something you would expect to find on the stock market, but it is actually a hot little mini-sector – if two stocks can be said to make a sector. First Virtus Health Limited (VRT), the largest IVF services provider in Australia, floated in May 2013, as its private equity owner Quadrant exited the stock (having made more than three times its investment.) Virtus was issued at $5.68 in June 2013, and hit the market with a bang, gaining 9% on debut. Since then the stock has moved to $7.90, with 39 cents of dividends in the kitty as well.

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