RoboStreet – August 29, 2019
A Triple Play in Plant-Based Meat
Without question, 2019 will go down as one of the most glamorous years for initial public offerings in history. Even as the market has demonstrated extreme volatility over the course of the past several months, it can be said that more millionaires have been made this year from the IPO market than at any time on record. The size of the IPOs that have dwarfed those of past years as the Silicon Valley unicorns are hitting the exchanges with valuations in the tens of billions of dollars.
It’s been a star-studded show of new stock offerings that the market has soaked up with an impressive appetite. The glamor list includes Uber Technologies (UBER), Lyft Inc. (LYFT), Zoom Video Communications (ZM), Pinterest Inc. (PINS), Slack Technologies (WORK) and the star of the IPO show – Beyond Meat Inc. (BYND).
For those investors that bought these stocks on day one of trading at their opening prices, only Zoom Video Communications, Pinterest and Beyond Meat are trading way up from where the stocks began trading. Shares of Uber, Lyft and Slack Technologies are well off their opening day prices.
And remember we’re not talking about day-trading here. I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.
But clearly, after being priced at $25, opening at $45 and trading all the way up to $239.71 before settling back to $165 where it currently trades, Beyond Meat has been an extraordinary story and stock that keeps millions of investors coming back to the markets seeking that IPO pot-o-gold. 2019 has seen fortunes made and lost in bitcoin and cannabis stocks when not traded properly, and some argue that the vegan meat sector will too get quickly crowded, leading to a fizzling of related stock valuations.
But this space, for now, is not crowded and has plenty of runway for further gains for 2019 and into next year before any threat of overcrowding or competition becomes apparent. And while Beyond Meat has brought significant attention to the alternative meat space and done more for raising awareness than any other investment theme, there are other ways to play the plant-based meat industry.
Tyson Food (TSN), the nation’s largest meat producer, has entered the alt-meat category announcing they will produce plant-based meat under the Raised & Rooted brand. They intend to release nuggets to retailers this summer, with a blended burger product to follow in the fall. Kellogg (K) owns vegan foods producer Morningstar Farms which has an alt-meat lineup. And Conagra Brands (CAG) owns Gardein which boasts several plant-based meat products.
Other ways to play the vegan meat story or by owning the restaurant stocks that are aggressively rolling out vegan burgers and chicken alternatives. Dunkin Doughnuts (DNKN) has introduced breakfast sandwiches with Beyond Meat products. Canadian fast-food chain Tim Horton’s, a subsidiary of Restaurant Brands International (QSR) is using Beyond Meat products in their menu and Burger King, also a subsidiary of QSR has a new meatless Whopper made from Impossible Foods (privately held company).
What is most encouraging is that the charts of all these stocks noted are bullish, some more than others that my AI-powered tools are confirming. For instance, Tyson Foods (TSN) shows three out of four probability indicators pointing to a higher stock price over the next 50 days.
Dunkin Doughnuts (DNKN) also shows up well with three out of four probability readings forecasting higher near-term price movement for the stock.
The meatless market is in the very early stages of a powerful secular trend that Conagra claims will grow to $30 billion in sales over the next 7-10 years. At present Morningstar Farms is the biggest player, followed by Gardein, both of which have seen sales quadruple in size over the past four years.
Like any new game-changing craze, there is a lot of hot money jumping in and out of these stocks. Just seeing Beyond Meat shares gap higher and gap lower should give investors an impression that using a smart algorithm-driven trading platform is the best and most intelligent way to trade this burgeoning sector. When Impossible Foods files for its IPO there is sure to be some volatility in the alt-meat sector, but one that affords tremendous opportunity if traded properly.
That’s what our RoboInvestor stock and ETF advisory service is all about – taking the power of artificial intelligence and applying proprietary algorithms that are custom-tailored to recognize precise entry and exit points for trading stocks and ETFs. In fact, my AI-driven system that is the backbone of RoboInvestor and has an enviable track record, posting winning trades 87.64% of the time. That’s unheard of anywhere in the retail investing world.
Make this Labor Day weekend a special occasion by joining RoboInvestor today and make a serious impact on your portfolio performance coming into the month of September and for the balance of 2019 and beyond. Not only do I stake my reputation with keeping up our torrid winning streak, I personally invest in every recommendation within the RoboInvestor Portfolio, and am thrilled to have done so! Come alongside me today and put RoboInvestor to work for your portfolio and let’s build some serious wealth in the stock market together.
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