Beyond Meat (BYND) made its debut in May 2019 among much fanfare on Wall Street as the company was touting a deal with Burger King for a large order, and a bright future for “plant-based” burgers. Nearly everyone I know went to try one of these at Burger King and liked them, and generally, the consumer has accepted the transition away from beef and plant-based food as our diet and health-conscious lifestyles have changed the way fast food outlets sell products.
Let’s look at at what happened to the share price now that we have a fair number of data points, the share price and valuation analysis always tells a great story about consumer demand, and what we can expect for the future.
Looking at the price action since the IPO launch in May 2019 you had a normalized trading patter which is logical when you stand back and observe the road map.
- The initial move from IPO at $65 was fueled by short-sellers who were non-believers
- Retail and Institutional bought shares above $150 during FOMO
- Retail and Institutional investors sold into year-end taking a loss
- Shares held the IPO price at $65 during the selloff
- Start of the year buyers made some nice trades owning the stock in 2020
When any observer stands back and looks at this action they all have a similar observation. They say wow this was easy to predict and easy to see coming down the road. I caution those who think like this when it comes to investing because once you take a position in any volatile asset your thinking becomes different, and you behave totally differently. It doesn’t matter if you are a small individual investor or a portfolio manager with $100 million of client money. It is human nature and it drives all markets – bare none.
The important thing to think about when trading this stock Beyond Meat (BYND) is that you are playing against investors who have much more money to invest, and are measured against a benchmark as part of their job and career. They will act differently than you as a retail investor, and this is why advisors preach a buy and hold strategy aimed at avoiding volatility.
My suggestion is to buy stocks you like and try the product on a regular basis, and it doesn’t matter if it is Walmart, McDonald’s, or Beyond Meat. Also, trade/invest within your own means. The worst trades happen when emotion is a driving factor, and this happens to everyone who has ever traded a share of stock.