Here is my trading report for Beyond Meat! A quick trade with a good profit!
Is possible that for most of you, Beyond Meat (BYND) does not ring a bell. This company is developing the meat of the future, which is plant-based but it tastes and feels just like real meat.
If you would like to know more about the company, please visit their website at https://www.beyondmeat.com/products/
I strongly believe that this “fake meat” will be the future. I do see people around me reducing their meat intake and the vegetarian movement is really growing strong. It is and it will be a booming industry!
On the financial side, Beyond Meat had revenue of $81million in 2018 and is growing double digits. The possible market for plant-based products is estimated at $40 billion in 10 years in the US only. Now imagine a very likely overseas expansion.
Since it’s IPO on May 2, the stock had quite a run from $25 a share. I had open a position on the stock yesterday at $68.81 with 20 shares, conscient of the risk of betting on recent IPO’s (just look to Lyft).
The stock exploded hitting $83 and found a small resistance. It pulled back to $81 and I’ve put a sell order just below the all-time high at $82.01.
Profit = (82.01*20)-(68.81*20)=$264
ROI = 19.18% (excluding fees and exchange rate)
This was a quick gain on a stock with no trading history. By trading history, I mean that there were no major support and resistance levels.
I will keep an eye on it for the next days hopping for a pullback in the coming days. I do wish to turn it into a long term investment but not without earnings to confirm a bull thesis.
As for the trend, the momentum is quite strong and maybe there is still some upside before pulling back to strong support which currently does not exist.
Is trading wrong?
In my opninion no. The stock market is by nature the reflection of a price consensus at any given time. As time moves, the consensus changes between undervalued, fairly priced and overvalued.
Taking profits from the market inefficiencies for me is a alternative way to grow my assets and therefore taking me one step closer to financial independence.
Many people in the stock market claim they are either a long term investor or a speculator. In this case, I am both since my stock portfolio has a focus on long term positions with some occasional trading or simply profit taking. I also hedge my portfolio by shorting my own positions. Does this make me a speculator?
Well at the end, all of us are speculators. No one really knows about the future of the stock market. Yes, history shows that it goes up in the long term but that is based on past data. The next 80 or 90 years will always be a surprise.
So in essence, we are all betting the market will go up as whole. Therefore, we are all speculators independently of our investment strategy.
The profits from my trades, are kept in my investment accounts and I do not use them as a income source. If you are curious about how I allocate my money, you can read more about my 5 basket total portfolio here.