Hmmm would there be a dead cat bounce? possible, but I wouldn't dare to bet on that.
Cos lock up expiry is on the end of October, and following which, there would be a big huge deluge of shares flooding the markets.
And you might be attracted to it cos of the massive drop, but at this rate, the company is still valued at something like 30x P/S, which is STILL absolutely crazy.
In contrast, Tyson, a big food conglomerate with global distribution channels, and a well known and trusted brand, with long track record and history, is valued at something like 3x sales.
And the only reason why we're using sales here is cos BYND has no profit to talk about and NEVER had.
So if you think of it that way, despite the massive drop, IMO it's still incredibly over priced.
Full of idealistic idiots who got conned on a story, albeit a good one.
There may be a dead cat bounce, but I'd rather not bet on it. There are many things with better odds.
Instead, on the contrary, if you know options, I'm seeing a lot of opportunity in going short the far OTM calls expiring in 2 weeks.
You can sell very far OTM calls with a very wide berth of safety, and still get pretty attractive premiums for the next to negligible risk. Those buying are betting on the earnings release, and hoping for good results.
Thing is, I think the results will be good... but markets are already expecting good results, so it's risky to try to bet on that.
So I'd rather find easy and relatively predictable things to do.
You can get an easy 3-5% return by selling those calls, within 2 weeks. Best part of it all is that you'd get a deal kinda like what WB gets at Berkshire: you don't have to cough up a cent, and until the options get exercised, you get free use of the capital to generate more returns.
tonight is day 1 post lockup expiry.
Shares are down almost 10% in premarket afterhours trading, despite comp reporting a 1st ever quarterly profit.
Will be covering my direct equity shorts tonight ard opening bell, expecting a windfall.
Kind of going to hit your target liao...you think will dead cat bounce?
Reply to @raymondong : Actually, this would be my 4th estimate that hit target.
Already hit 3 times prior:
https://www.investingnote.com/posts/1611672
https://www.investingnote.com/posts/1547919
https://www.investingnote.com/posts/1491351
I've shorted this since it was like at $230 or so.
Hmmm would there be a dead cat bounce? possible, but I wouldn't dare to bet on that.
Cos lock up expiry is on the end of October, and following which, there would be a big huge deluge of shares flooding the markets.
And you might be attracted to it cos of the massive drop, but at this rate, the company is still valued at something like 30x P/S, which is STILL absolutely crazy.
In contrast, Tyson, a big food conglomerate with global distribution channels, and a well known and trusted brand, with long track record and history, is valued at something like 3x sales.
And the only reason why we're using sales here is cos BYND has no profit to talk about and NEVER had.
So if you think of it that way, despite the massive drop, IMO it's still incredibly over priced.
Full of idealistic idiots who got conned on a story, albeit a good one.
There may be a dead cat bounce, but I'd rather not bet on it. There are many things with better odds.
Instead, on the contrary, if you know options, I'm seeing a lot of opportunity in going short the far OTM calls expiring in 2 weeks.
You can sell very far OTM calls with a very wide berth of safety, and still get pretty attractive premiums for the next to negligible risk. Those buying are betting on the earnings release, and hoping for good results.
Thing is, I think the results will be good... but markets are already expecting good results, so it's risky to try to bet on that.
So I'd rather find easy and relatively predictable things to do.
You can get an easy 3-5% return by selling those calls, within 2 weeks. Best part of it all is that you'd get a deal kinda like what WB gets at Berkshire: you don't have to cough up a cent, and until the options get exercised, you get free use of the capital to generate more returns.
Free Falling.