by Ian Harvey
January 10, 2020
Beyond Meat volatility helps stock rally approximately 21% since the opening of the market on Tuesday.
“Armchair Trader Members,” using a call option make potential profits of 111%!
Where to now for BYND?
Despite Beyond Meat volatility helped shares rally after McDonald's (MCD) announced it was expanding the test of the former's plant-based burger in Canada. Actually McDonald’s will now offer BYND's vegan burger in 52 outlets across southwest Ontario, up from 28 in the initial trial.
Bernstein analyst Alexia Howard said it's unlikely Beyond Meat has enough capacity to support a nationwide launch at this time, but could progress to over $800 million in internal capacity within the next one year to 18 months. At that point, a Beyond "PLT" nationwide launch could be possible and would add over 60% to Beyond Meat's current sales.
If a broader partnership comes to fruition, Howard says the stock could hit $130 per share.
Howard maintains an Outperform rating on Beyond Meat with a $106 price target.
Beyond Meat volatility continued throughout the past three days with the stock falling 2.9% to close at $81.48 in the stock market Wednesday, reversing an earlier 5% gain after jumping 12.5% Tuesday on news Impossible Foods was abandoning its pursuit of a McDonald's deal. Yesterday saw Beyond Meat share price hit $90.40, up about another 8.85%, before closing the day at $90.25.
Pre-market today, at time of writing, sees BYND up another 4.16%, at $94.00.
Despite Beyond Meat's volatility growth prospects extend beyond McDonald's and a similar partnership to supply Dunkin Brands Group Inc (NASDAQ: DNKN) represents another "sizable" opportunity, the analyst wrote in the note.
Beyond Meat is also well-positioned to gain market share if the African Swine Fever outbreak in China contributes to a global protein price increase in 2020. However, Beyond Meat volatility will continue as the short interest in stock stands at a "relatively high level" of 21% which implies the stock is still "controversial.
YOU NEED TO BE IN TO PROFIT!
"Here is the recommended trade on Beyond Meat …..given December 09, 2019…..
The "meatless" meat company Beyond Meat Inc (NASDAQ: BYND) has had a wild ride as a public company. The company announced Thursday that its plant-based burger patties would appear in select Costco stores. The move from the young company comes as competition for retail shelf space intensifies against rival plant-based meat producer, Impossible Foods and others. This move should help propel the stock upwards.
Beyond Meat said that its popular Beyond Burgers will be sold at Costco stores in states including Texas, Florida, and New York for $14.99 per eight-patty pack.
Beyond Meat has been one of the most prolific IPOs of 2019 and currently sits around $76.22 per share, which represents around a 190% return. BYND stock at one point rose over 858% to trade at $239.71 per share.
And at the present time is undervalued below $80 given the company’s long-term growth prospects.....read more.....
Option trade to consider: Buy the BYND FEB 21 2020 80.000 CALL at approximately $6.40.
Profiting from the recommended trade on Beyond Meat…..
Armchair Trader Members were able to enter the trade at approximately $6.40; and exit when the call option hit $13.55 – allowing for 111% potential profit!
Beyond Meat volatility will still impact the share price; and there is still a long way to go before filling a late-October post-earnings bear gap.
There's still plenty of pessimism priced into the stock. Of the 12 brokerages covering BYND, eight rate it a "hold" or "strong sell." And short interest increased by 21% in the most recent reporting period to a record high 8.5 million shares.
A bigger commitment from McDonald's would represent further validation to the plant-based meat industry, which has expanded as more people signal concerns about big agriculture's impact on the environment and where and how restaurants get product.
Were McDonald's to introduce the P.L.T. in the U.S., Beyond Meat's sales could soar to around $910 million in 2021, up from around $280 million last year.
Join us today and see what future trades will be recommended!
The questions remain...... Will Beyond Meat volatility continue?
Will Beyond Meat shares continue to perform from here?
Will we recommend another options trade on Beyond Meat?
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!