Jim Cramer had a lot to say in a short period of time during the Mad Money Lightning Round Thursday night. One caller asked about the relative new IPO Beyond Meat (BYND) : "This is hard. They do a good job, but the stock is expensive," noted Cramer.
We looked at BYND back in the middle of August and noticed that the Point and Figure chart showed "a potential downside price target around $150 but the price at the volume bars on the left scale shows little potential support below $150 so a deeper decline is possible."
Let's check out the latest charts.
In this updated daily bar chart of BYND, below, we can see that prices declined to around $135 before a bounce to the underside of the flat 50-day moving average line. Trading volume and interest in the name declined throughout August and into September.
The On-Balance-Volume (OBV) line did not improve much and the Moving Average Convergence Divergence (MACD) oscillator has remained weak.
In this updated Point and Figure chart of BYND, below, we can see a downside price target of $137 being projected or a retest of the August low.
Bottom line strategy: I don't know if a stock is cheap or expensive but I can see that interest in plant products is increasing but so are the number of competitors. The current technical picture of BYND suggests that the odds favor further declines. Stand aside for now.