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Is Beyond Meat Stock Healthy for Your Portfolio?

Is Beyond Meat Stock Healthy for Your Portfolio?
(Piotr Swat/Dreamstime)

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Wednesday, 30 October 2019 05:03 PM Current | Bio | Archive

With a plethora of material to cover, from the rate cut to the GDP to declining U.S. personal consumption, let’s keep it simple and focus on one stock: Beyond Meat (BYND).

Personal consumption will rise again. Beyond Meat is poised to also rise. After all, China has lost 100 million pigs to African swine fever.

Although the imports from Europe have increased by 54% thus far.

On Monday, Beyond Meat reported better than expected third quarter earnings.

Yesterday, the price dropped 22%.

Today, the price rose by nearly 10%.

The CEO said that he expects that the company will become the “Amazon or Tesla of the $1.4 trillion meat industry.”

Practically every person I talk to no matter how young or old, vegan or carnivore, has bought a Beyond Meat burger or sausage.

So, if the CEO is right, what must the price do from here?

The all-time high occurred on July 28 at $239.71.

The IPO opening price was $46.00.

After making a classic peak top with blow off volume, we were hardly surprised to see the price decline.

However, as much as the price was overblown on the upside, it’s matched by how overblown it got on the downside.

The volume on Tuesday’s decline was 10 times the average daily volume.

Wednesday, the volume was about 6 times the average.

That makes for a blow-off bottom.

The classic reversal bottom marginally confirmed with a close above $88.88 or prior day’s high.

The prior day’s low was $80.10, which gives traders a reliable line in the sand or risk point that must hold.

It’s possible that the stock will gap above the last 2 days of price action.

That would signal an exhaustion gap and another confirmation of a trend reversal.

From a consumer instinct standpoint, I believe that fake meat is a megatrend.

As a vegan for 20 years, that gives me personal satisfaction.

By the way, I do not like the Beyond Meat products because they do taste too much like meat.

Nevertheless, my carnivorous husband and many other carnivores like it.

Michele ‘Mish’ Schneider serves as Director of Trading Education at MarketGauge.com. For 20 years, MarketGauge.com has provided financial information and education to thousands. MarketWatch named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish won the Top Stock Pick of the year for RealVision. Follow her on Twitter at Michele Schneider @marketminute.

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Practically every person I talk to no matter how young or old, vegan or carnivore, has bought a Beyond Meat burger or sausage.
beyond, meat, stock, price, investors, share
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2019-03-30
Wednesday, 30 October 2019 05:03 PM
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