Hedgeye CEO Keith McCullough is adding Beyond Meat (BYND) to the short side of Investing Ideas. Below is a brief note.
AFTER the US stock market ramped to all-time SPY and IWM highs, plenty of shorts got squeezed... and many short sellers feel shame...
For those of you who have been short selling for 20 years, you know the #behavioral part of The Game matters. When you "feel" like you can't short anything, ever again, is a great time to start feeling great about putting on more shorts.
One stock Consumer Staples analyst Howard Penney has had nothing but bad feelings (and data) about since the storytelling went LIVE @CNBC is Beyond Meat (BYND). Here's a good excerpt from one of Howard's recent Consumables Pro (#subscribe) notes on the name:
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DOES BYND HAVE A FAST FOOD "BURGER" CATEGORY PROBLEM? "MCD never tested the BYND product in the USA. The Canadian test of BYND lasted only a few months, and MCD had a few polite words after the trial ended. Then came the McPlant controversy leaving BYND with a permanent black eye because it will likely never be sold in an MCD store as a BYND "burger." Dr. Sylvain Charlebois, a professor at Dalhousie University in Nova Scotia, has sound reasoning why MCD is shunning BYND. "It's better than beef' rhetoric has hurt the brand and the category. Instead of positioning the product as unique or an alternative, Beyond Meat has become its own worst enemy by encouraging consumers to ditch meat. The reality is that most Canadians (and Americans) still enjoy traditional animal proteins. It is very much a part of our heritage." |
Sell the bounce to lower-highs on #decelerating volume,
KM