zSplit
Short

Beyond Meat: The Bubble Has Burst

NASDAQ:BYND   BEYOND MEAT INC
We were all in shock and awe when for seemingly no reason Beyond soared to some 240.00. For what though? They continue to post pound for pound increasingly higher losses, despite higher revenues AND essentially, unlimited free marketing from the press.

Only in our current economical bubble (that is bound to burst) can we have a company losing money that has a higher stock value than established companies like Microsoft .

Welcome to the 2019-2020 version of Tilray . Tiilray soared quickly to 300.00 then tanked and is still hovering around 40.00 and cant seem to budge above 50.00 despite the Cannabis sector rebounding relatively strongly as a whole.

I expect Beyond to be around 40-60.00 by November which is in fact, what the stock price should be today. Players like Tyson have posted profit - increasing revenues - and employ many more people and their stock is only NOW near 85.00.

Beyond will soon be a distant memory come Q1 2020 although when it sinks to 40-50.00 and finds bottom resistance, I'll be buying.


- zSplit
the next earnings on oct 30th will bring it down if your right then back up?
Reply
zSplit CarlitoPro
@CarlitoPro, October 30 is pretty far away.

Its hard to believe their October 30 earnings will be any closer to profitability than it is now. Their revenues continue to rise and their road to profitability continues to be further away or not move which isn't a good sign. Often times IPOs that bubble like this eventually crash down when the fairy-tale story wears off.

A lot of people are already starting to talk less and less about the company and this stock is most definitely a bubble. I surely wouldn't recommend buying it.
+1 Reply
Hi zSplit thanks for your analysis. Could you clarify how many shares of BYND do you intend to buy if it drops down to 40 and why? I'm new to trading so I want to understand this better
Reply
zSplit fofanadave
@fofanadave,

Hey there! If it gets down to below 50.00 assuming I deem that to be the bottom level I would be willing to throw around 5k in the company. I would have to monitor the bottom based on oscillators, company news, their balance sheet, revenues, profits, EPS, etc, etc, etc. So while I cannot really give you a specific number, date and share amount, once it bottoms out and holds steady at the lower channel which I deem to be in the 40-60.00 range I will likely invest around 5k or so as I said.

I definitely wouldn't recommend investing anywhere near the current level though.
Reply
@zSplit,

Why not just throw 5k into a short and ride it all the way down to $40-50? Like you I see this being a fad and dropping, but it seems like you'd be missing a major opportunity waiting for the bottom.
Reply
zSplit LipSmacker
@LipSmacker,

You absolutely can but I’m not a daytrader so I don’t short a ton.
Reply
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