Good morning… A quick Dr. Seuss-style piece on Beyond Meat (BYND) - now up 900% in the last week. The stock has surged from under $1.00 in an epic short squeeze. But this one is different. This company is all that’s wrong with the financial markets… I’ve covered this thing for years… and always warn about the short squeezes. This one feels different. But first. I Will Not Eat Beyond Meat I do not like this Beyond Meat! I will not eat this fake meat treat. Do you like it in a bun? I do not like it, it’s no fun. I do not like this fake meat treat, I will not eat Beyond Meat! Would you eat it in a taco? Would you try it? Don’t say “No, bro!” I would not eat it in a taco, I would not try it, sorry bro! I do not like it in a bun, I do not like it, it’s no fun! Would you eat it grilled with care? Would you eat it anywhere? I would not eat it grilled with care, I would not eat it anywhere! I do not like this plant-based thing, I will not eat this offering! As I’ve long argued, since the stock was at post-COVID highs and has subsequently lost 99% of its value since the Fed dropped trillions from the sky, Beyond Meat represented everything wrong with equity markets. It is the definition of a zombie stock - saddled with debt, sucking up productive capital, all for a company that makes an unhealthy product that no one should want. If you like Beyond Meat’s product… fine. The inflammation it caused me was epic. At least give me the benefit of the doubt that it proves how broken the incentives are in companies going public. Consider how much money insiders extracted from this thing at the expense of the retail consumer. Consider the fact that the stock has now joined a Meme ETF (MEME), which will fuel a crazy frenzy that will distract the would-be investor from chasing thing thing. And yes - there is a way to trade BYND - and it doesn’t bother me about that… using Volume Weighted Average Price. I’ll walk viewers through it at 8:45 ET on my morning show. A few years ago, knowing my contempt for Beyond Meat, a producer at my former network gave me this mug. Here’s me… driving the Beyond Meat bus…
It’s going to be one of those days… Weeks… maybe for BYND. [Coincidentally, I’ve been long Kohl’s, an equally bad short-squeeze stock, since October 10 because it has a strong F score and popped above its 8-20-EMA stack]. There’s still a lot of stock that needs to be covered in this squeeze. I’m setting a 20% chance that BYND officials try to find a way to pivot the dying company into AI, crypto, or Rare Earth metals… with all the attention this garners and the games they can now play. How about Plant NFTs? Counterfeit gold would be a great pivot from counterfeit meat. Meanwhile, companies that actually make stuff… and make money… sit on the sidelines. If anyone tells you that the markets aren’t a casino… point to this name. Now… let’s talk about the things driving the market today.. Continue reading this post for free in the Substack app
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