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Beyond Meat BYND IPO

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Beyond Meat BYND launched an IPO today, it appears in the app but says that it isnt availible online. Will it be availible through IG? If so, When?

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@SRD,  you might find it's available via phone to the IG dealing desk.

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This thread is good timing. I had someone ask me just today how they could invest in this IPO. 

Does anyone know which U.K. brokers will allow U.K. investors to invest in this?

I am aware of the W8-BEN needing to be completed. 

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Beyond Meat is available on IG's UK Spread Betting platform with a 'Cash' option and 'Forward' option with Jun 19, Sep 19 and Dec 19. 

It has gone up over 175% today at the time of writing!

This was valued at around $1.5bn at IPO but now the valuation has gone crazy!

I would expect the share price to decline once it has been pumped up to the maximum. This company has not made a $ in profit to date and it has a $1.5bn vacation and possibly more now. It is loss making and has been for around 10 years now. 

I think there may be a cheaper entry point going forwards when some serious profit taking occurs and the initial investors prior to the IPO decide to exit whilst the herd late to the party are sitting with big losses.

 

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Guest Marc

Hi, 

Why can't i shortsell Beyond Meat? 

Thanks,
Marc

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19 hours ago, Guest Marc said:

Why can't i shortsell Beyond Meat? 

Hi Marc - this stock is currently unborrowable in the underlying market. This is likely due to the significant rally in the stock and a large percentage of the stock being shorted. You can give us a call where we can manually check the underlying market and other liquidity providers to see if we can get borrow to short, however please note if this is possible there may be a large borrow charge. We'll inform you if this is higher than normal before confirming to open the short. 

You should be able to close this trade at any time on the dealing platform without having to call (normal market conditions dependent of course). 

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At some point Beyond Meat is going to tank in my opinion as the valuation is extremely high and there is going to be a lot of profit taking and shorting which is going to amplify any move downwards. 

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As you will see in this thread that I have previously stated that the valuation is absurd. I am predicting the price to experience a severe price correction which will present a great shorting opportunity. The fundamentals and revenue / lack of profit figures just do not justify the valuation in my personal opinion. 

I came across this article today which I have to agree with.

Cattle Prod This Unicorn: Beyond Meat’s Stock Will Kill Your Portfolio

https://www.ccn.com/beyond-meat-stock-kill-portfolio

@JamesIG, based on your previous post last month on this thread, are there any changes for IG Clients to be able to short this should the opportunity present itself in the future? I appreciate we can call IG to find out but are there any developments to allow IG's clients 

 

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@TrendFollower - Sort Interest is over 35% for Beyond Meat. To put that in perspective, Tesla is closer to 28%.

Unfortunately you'd have to call to see if we can get borrow on a case by case basis. 

Sort interest costs will also likely be large. 

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@JamesIG,

Thank you for your quick response. I am not looking at shorting right now as the trend is upwards and this may continue for the time being. I would only short once there is a confirmation of a trend reversal. Then I think this is going to be a great shorting opportunity. 

If anything changes then please can you post on this thread so that we are all updated?

Just out of interest how large are the short interest costs likely to be? Are you able to give any idea?

While any equity bull run is in tact then the likes of Beyond Meat may continue to go upwards so I would not short it right now and the price action does not support a short right now. However on any trend reversal I would like to get in as early as possible. This is my 'anticipation' stage. I am making an 'assumption' which will be tested in the coming weeks and months by the price behaviour. 

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Borrow costs are huge at 32.51% currently. This is a cost in the underlying market. 

Tesla, by comparison, is 1.42% 

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@JamesIG,

Wow, 32.51%. Oh my goodness. It is a substantial cost in the underlying market which means IG is not the broker to use if one wants to make preparations to short Beyond Meat at some point in the future. 

Right now it is continuing its upward trajectory and rallying pretty hard so it is not an issue right now. If anything changes then please let us know. 

Thanks again

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Evening @TrendFollower

Still absolutely zero borrow available in the market. Indicative borrow charges (from one of our LPs) are hitting 600% per annum this evening, still no-one lending.

Suspect we'll see decent volatility in this for a good while. 

Have a good WE.

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@JamesIG and @Ludwik Chodzko-Zajko IG,

Both of you may be interested in this. It seems more than half of Beyond Meat shared offered were sold short because apparently bears believed the share was extremely overvalued. Instead what has happened is the demand of the stock has been so high due to hype that short sellers were forced to buy back their shares at higher prices than they sold them. This created even more demand and as a result we are seeing over 460% rise which is immense. 

I personally think the valuation is not absurd and just does not make any sense. This is a bubble if ever I have seen one even when comparing to Bitcoin!

I mean Beyond Meat is now valued around over $8 billion and this is only after generating around $40m in revenue. They are losing money every year and are not making any profits. I mean it shares trade at more than fifty times revenue which to me is absurd.

If this company does not significantly increase its turnover and begin to make meaningful profits to justify its valuation then I can only see a blood bath coming!

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I agree this is going to be offered to the pits but s’good food. 

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@PandaFace,

No I have never had any of their products. Apparently they are sold in certain Tesco's across the UK but I cannot say I have seen them unless they are labeled under a different brand. 

This will certainly be offered to the pits. I just cannot see any other conclusion based on my experience. The only thing that would stop that from happening is if it delivered mind blowing growth from a revenue and profit perspective. That is not impossible but that is what it would take in my opinion. 

This share is a good example of trading the price action on the 'Long' side. Even if you think it is overvalued based on extreme hype and the valuation is not justified on any level / metric then when one trades on price action, it simply does not matter. One puts emotion and personal views to one side and just trades the trend based on price action. Very similar mindset to trading Bitcoin and other Cryptocurrencies! LOL 😁

This is an example of a strong trending share. These are the opportunities that an aggressive trader must trade to maximise profits at the end of the year. If one uses leverage effectively then the returns and profits cannot be sniffed at. This is what counts. First of all, don't lose your capital or keep losses at an absolute minimum. Secondly, identify the strongest trending assets and this would be one of them and trade them. Even if you make several losses along the way your profits (letting your big winners run and not exiting early) should allow your end of year performance to annihilate someone who only trades liquid and 'normal' trades, trades frequently and based on superior and complex technical analysis.

The answer to the riddle is not how complex the technical analysis you conduct is. The answer to the riddle of how to be a successful and profitable trader consistently year and after year is about identifying and trading the strongest trending assets. If you do not identify them then you simply cannot trade them. Even if you identify them but your emotions and personal opinions / views get in the way then again you cannot trade them. We are all guilty of letting emotions and our ego's of we know best get in the way. Those who can overcome this better than others may not be the most intelligence or be able to apply complex technical analysis but they will certainly have an excellent chance of outperforming those traders with the profits they make and that is what is important. Everything else is 'noise'. Some will call it gambling if you trade the likes of Bitcoin, Beyond Meat or Palladium but if sound risk management is applied to a trading strategy and you can use a trading system to deliver it then that is what counts at the end of the day.

Beyond Meat hit $14593 today! Look where it started its journey (IPO) and in a short space of time what returns it has delivered. 450% +. Now add leverage and you will get my point on this. 

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Evening all,

The shares desk have confirmed there is limited borrow available in the market this evening - current borrow charge is 100% per annum, so pretty steep. Availability & cost will likely vary over the coming days.

You'll need to call in should you wish to open a short position ( buying or selling to close can be done via the platform).

 

In other news - Honest burger also sell the BYND patty. Few of us on desk had one this evening - probably not allowed to comment on how it was so I won't...

 

 

 

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@Ludwik Chodzko-Zajko IG,

Yes 100% is pretty steep. 

@PandaFace

If you look at the 1 hour chart then the 20 DMA has turned and its MA curve is sloping downwards. There is going to be profit taking, stop losses being triggered and new shorts opening and when this happens I can only see one hell of a shorting opportunity. 

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So what is Beyond Meat doing right now. 

To me it seems that the buying pressure is easing and the trend is weakening when you look at the 'daily' timeframe. 

There could be a potential shorting opportunity here if the speculative capital stops driving this share up as the valuation and market cap is ridiculous on any level. Of course that is my personal opinion and I have seen many companies be driven to such insane levels but the majority of them do come down as the share price simply cannot justify a loss making company.

1737957355_BeyondMeatInc_20190629_14_27.png.f2759d86771e48c53c18bd5ddfe10e36.png

 

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Looking at the 'daily' today it seems that the buyers are exhausted. Now this could be a consolidation until the next move up but what will the next move up be based on?

This is why my assumption is a potential trend reversal and move downwards. I could be wrong and this may not happen but I cannot see any reason why this share would continue going up right now. There has to be a deep correction looming, the question for me is when?

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Beyond Meat's valuation in my opinion is absurd. The article below may be of interest to some of you.

Beyond Meat Tanks 13 Percent After-Hours Because of This Terrible News

https://www.ccn.com/news/beyond-meat-tanks-13-percent-because-of-this-terrible-news/2019/07/29/

The current chart 'daily' is below to show the downside potential on this stock.

1201649018_BeyondMeatInc_20190730_16_17.thumb.png.a9e27cbd4858ae37c7dc5481ba5b0f56.png

For me those who invested pre IPO will be exiting without the man on the street even realising. Those earlier investors will exit at a huge profit as they will have invested at lot lower prices than even the IPO price. They will be rewarded heavily. It is those who decided to join the party late 'herd' that could be burnt badly.

I am suggesting this from my personal experience of investing in start up growth businesses.

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6 hours ago, TrendFollower said:

Beyond Meat's valuation in my opinion is absurd. The article below may be of interest to some of you.

Beyond Meat Tanks 13 Percent After-Hours Because of This Terrible News

https://www.ccn.com/news/beyond-meat-tanks-13-percent-because-of-this-terrible-news/2019/07/29/

The current chart 'daily' is below to show the downside potential on this stock.

1201649018_BeyondMeatInc_20190730_16_17.thumb.png.a9e27cbd4858ae37c7dc5481ba5b0f56.png

For me those who invested pre IPO will be exiting without the man on the street even realising. Those earlier investors will exit at a huge profit as they will have invested at lot lower prices than even the IPO price. They will be rewarded heavily. It is those who decided to join the party late 'herd' that could be burnt badly.

I am suggesting this from my personal experience of investing in start up growth businesses.

Haven’t you been calling this sell off since its IPO at $25? Only 10x plus since then but yeh 👍🏻

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@PandaFace,

I have always maintained that this stock is overvalued on an insane level. The future price behaviour will confirm or reject my thoughts. It is all about timing. I do not have a crystal ball and I cannot accurately predict when this share will begin its tumble but tumble it will in my personal opinion. 

If you read my previous posts then you will see that I acknowledge the returns on the upside and appreciate the trend following opportunity on the upside taking into account leverage too! Some staggering returns from a trend following perspective with leverage. 

If you have a look at my 7 June and 13 June posts then it will show my thoughts at the time. 13 June post clearly shows my appreciation for the long trade on this particular share based on price action rather than my personal thoughts. 

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3 hours ago, elle said:

one for the diary "Your early investors have backed you, and they deserve a reward for their perseverance. Under the terms of the offering, they, and you, can sell your holdings 180 days after the listing, on October 29."

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@cryptotrader,

This will be interesting. I do wonder if selling begins prior to this date in anticipation thus leading to an amplified sell off by the very early investors when the date arrives. 

Let us see from now till Christmas whether Beyond Meat is higher than today's price or lower.

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