In this file:
∑ Beyond Meatís Valuation Is ĎAbsurd,í Says Stockís First Short
∑ Beyond Meat: Unhealthy For The Heart And The Portfolio
∑ Beyond Meat's blistering stock-market start may be over (BYND)
∑ Vegan Food Companies Raised $16 Billion In 10 Years
Beyond Meatís Valuation Is ĎAbsurd,í Says Stockís First Short
By Tatiana Darie, Bloomberg
May 8, 2019
Now that Beyond Meat Inc. has soared about 225 percent since going public last week -- and saw the strongest first day of trading for an IPO since the 2008 financial crisis -- the first skeptics on Wall Street are coming out with guns blazing.
The valuation has become "absurd" and the stock should pull back soon, according to Atlanta-based Harrington Alpha Fund founder Bruce Cox. His newly launched long/short fund initiated a short position in the stock on Wednesday, the first fund manager to go on record as questioning Beyond Meatís runup.
"The valuation, by any metric, is out of control," Cox said by phone, pointing to the stockís elevated trading volumes. "It will definitely roll over...itís a matter of when."
Cox, former senior vice president of investments at Stifel, said that anywhere in the $40s --where the stock opened in its first day of trading -- is a more reasonable price. He predicts that sell-side analysts, whoíll be able to weigh in on the stock after research restrictions expire on May 28, will advise clients against buying shares at these levels.
Beyond Meat shares fell as much as 4.8 percent on Wednesday, its first down session since it started trading on May 2. Company representatives didnít immediately respond to calls and emails seeking comment.
Traders surveyed by Bloomberg News said they were quoted borrow fees of 36% to 111%, a sign of how early it is to short the newly minted stock. Data points remain incomplete and will be more reliable in a day or two, said Ihor Dusaniwsky, head of research at financial analytics firm S3 Partners. Early data from S3 show short interest representing about 6.6% of Beyond Meatís float, with the last financing rate at 19.7%.
Goldman Sachs, JPMorgan, Credit Suisse, BofAML, Jefferies and William Blair are among banks that managed the companyís initial public offering who may publish research after the quiet period ends. The stock has already received two bullish initiations from Freedom Finance and Bernstein, but with widely different price targets, $28 and $81, respectively.
Cox said fundamentals donít support the current valuation and noted that companies --like Tyson Foods Inc. -- can "pretty easily" enter the market. Bernstein analyst Alexia Howard acknowledged the competitive dynamics in the alternative meat market in her initiation note on Monday, but expressed optimism...
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Beyond Meat: Unhealthy For The Heart And The Portfolio
About: Beyond Meat, Inc. (BYND)
Dane Bowler, Seeking Alpha
May 8, 2019
∑ BYND's valuation bakes in substantial growth.
∑ I do not see the product as good enough to sustainably grow revenues.
∑ Nutritionally, Beyond Burgers are worse than beef burgers.
Normally when I see exciting ďtechĒ startups IPOing at lofty valuations I just groan and recognize that we are in a speculative growth kind of market. Ordinarily, I keep these thoughts to myself, but I feel compelled to write about my distaste for the Beyond Meat (BYND) IPO price action due to a combination of its extreme valuation and the lack of viability of its product.
I am not here to comment on the flavor or mouthfeel as these are subjective and some people may enjoy the product. Instead, I want to discuss the nutrition and the misconceptions resulting from how this product is marketed. Eventually, the substandard nutritional content will hamper demand for the product and its valuation is predicated on massively higher demand.
Those who follow my work know that I am a REIT dedicated analyst, so Beyond Meat is well outside of my normal research, but I am a nutritionist by education with a B.S. in dietetics from UW Madison.
The food industry is among the most dishonest when it comes to marketing and in many cases this marketing endangers the health of an unsuspecting public.
There are harmless instances of misleading like when bottled water advertises as having 0 calories. Such misinformation usually starts with a grain of truth (it does in fact have 0 calories), but the information is placed on the package to mislead the uninformed consumer into thinking this water is somehow healthier than the brand they would otherwise drink.
The misinformation campaign is far more pernicious when a company attempts to trick consumers into thinking an unhealthy product is good for them. I do not intend to impute Beyond Meatís motives, nor can I say that the company intended to mislead consumers. However, 2 things are clear:
Beyond Meat's blistering stock-market start may be over (BYND)
∑ Beyond Meat was up more than 5% early Wednesday, but is now trading lower.
∑ Shares gained as much as 235% since pricing on May 1, and closed higher in each of the first four trading days.
Jonathan Garber, Business Insider†
May. 8, 2019
Investors insatiable demand for Beyond Meat may finally be waning.
Shares of the plant-based burger maker were up about 6% early Wednesday, extending their gain to 235% since pricing at $25 on May 1, but are now trading lower by almost 2% at $77.88 apiece.
A lower close would mark the first down day for the stock since it went public on May 2.
"The recent large IPO pop for Beyond Meat highlights the market's appetite for innovation in the same nontech industry," Nomura Instinet analyst Joseph Mezrich wrote in a note sent out to clients on Tuesday.
Wednesday's sell-off comes as investors brace for more volatility in shares as options began trading on the Chicago Board Options Exchange.
Beyond Meat's red-hot stock-market debut comes despite the company not yet turning a profit. It has generated losses in each year since its 2009 founding...
Vegan Food Companies Raised $16 Billion In 10 Years
Investors are giving more funding to vegan food brands. Vegan meat and dairy brands have attracted more than $16 billion in investments in the last decade.
Jemima Webber, Live Kindly
May 9, 2019
Vegan food is more popular than ever and investors are paying attention. Since 2009, more than $16 billion has been invested into plant-based meat, egg, and dairy companies in the U.S. alone.
Following the news of Beyond Meat going public and seeing its share price boost by 163 percent, The Good Food Institute (GFI) released data showing the ever-growing interest in plant-based companies.
According to the new report, a large majority ($13 billion) of the $16 billion of investments in plant-based food companies were made in 2017 and 2018. More than half of plant-based company acquisitions have taken place in those years, too.
In the last decade, 19 vegan companies have been acquired, with 10 of them occurring in the last two years. The largest acquisition, which took place in 2017, was that of vegan milk brand WhiteWave Foods which was acquired by Danone for $12.5 billion. Dairy-free milk is a category of growing speed, acting as the largest and most-developed plant-based sector and making up 13 percent of the total U.S. retail milk market.
Should the vegan meat market gain the same attention, it could be worth more than $40 billion within the next 10 years, according to industry analysts. Beyond Meatís IPO plays a large part in these estimations; its IPO is the largest in the U.S. in nearly 20 years and led to its valuation boosting from $1.2 billion to more than $3.8 billion.
Clean Meat Market Set to Boom ...
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