Beyond Meat priced its initial public offering at $25 and skyrocket 800% in less than four months. Beyond Meat, a maker of plant-based meat controls about 10% of the plant based meat market. And because they have achieved “first to market” they are the new IT THING on Wall Street. But there valuation is beyond ridiculous. Their valuation is higher than roughly 25% of the companies in the S&P 500 index and their “first to market” competitive advantage expired.
Kellogg (K) introduced “Incogmeato” and their plant-based burger patties, Chik’n tenders, and Chik’n nuggets which go on sale in early 2020. Hormel Foods announced its plant-based meat substitute called “Happy Little Plants” is available at select retailers. The Impossible Foods launched the Impossible Burger through Burger King in August. Kroger said they will sell a new line of branded plant-based burgers, other meatless products like dips, pasta sauces and cookie dough in the coming months under their Simple Truth Plant Based label.
Beyond Meat Inc. was initiated at sell with a $120 price target at CFRA, with analyst Arun Sundaram saying the plant-based meat company will be overtaken by bigger players entering the space.
“We think larger packaged food companies will end up as the category leaders in the space given their vast global footprint and embedded relationships throughout the supply chain,” Sundaram wrote in a note. “Yet we expect Beyond Meat to be the greatest disrupter in this space since no public packaged food peer comes close to Beyond Meat in terms of research and development spend as a percentage of sales.”
Sundaram notes that “many think Impossible Foods’ Impossible Burger tastes better than the Beyond Burger.”
The call is a bit late and should have been made when the chart was suggesting that price was going lower.
But now we are just $10 from that $100 level I talked about one month ago.
The $100 level represents price at a discount. But, don’t listen to me, just pay attention to what the Smart Money is doing.
Heading into the third quarter of 2019, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 16 from one quarter earlier.
With a general bullishness amongst the heavyweights, some big names have jumped into Beyond Meat, Inc. (NASDAQ:BYND) headfirst. Citadel Investment Group, managed by Ken Griffin, created the most valuable call position in Beyond Meat, Inc. (NASDAQ:BYND). Citadel Investment Group had $117.8 million invested in the company at the end of the quarter. OZ Management also initiated a $11.9 million position during the quarter. The other funds with brand new BYND positions are Brad Farber's Atika Capital, Robert Henry Lynch's Aristeia Capital, and Anthony Bozza's Lakewood Capital Management.
I personally envision the $100 level will be an accumulation level for the Smart Money. I think price will hang out near the $100 level for a bit, until the Smart Money is able to fill all their buy orders and then I think price will move higher.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.