Bed, Bath, and Beyond Meat

• Fundamentally, Beyond Meat seemed to lose momentum over the last year, culminating with late Thursday's announcement McDonalds was ending its experiment with the product.
• Technically, BYND has been in a long-term downtrend since completing a head and shoulders pattern on its monthly chart at the end of July 2021.
• The question is now if investors get interested in the stock given how far it has fallen and looking ahead at possible changes in beef fundamentals.

One piece of news early Thursday after through Friday morning was McDonald's experiment with Beyond Meat (BYND) was coming to an end and not as the success some thought it might be a couple years ago. Recall I’ve written in the past on Beyond Meat, both fundamentally and technically. 

Am I surprised this experiment with plant-based meat didn't work? No. For better or worse, when consumers go to McDonalds (MCD), or any other fast-food chain, they do so because they know exactly what it is supposed to taste like for minimal cost. And that, in a nutshell, describes the US consumer. But I digress.

From a technical point of view Beyond Meat (BYND) has been in long-term downtrend on its monthly charts since completing a head and shoulders top a year ago this month. Yes, July 2021 saw BYND break the neckline of this pattern that then projected the stock to fall out of bed, all the way down to near $83.00. Unfortunately, bottom pickers who might've used that as a target likely took a bath as BYND fell to a new lifetime low below $66.60 on is way to $23.94 at the end of last month. Interestingly enough, BYND has rallied a bit this month though could finish July under pressure given the latest news.

Will investors take another look at the stock? On the plus-side BYND is sharply oversold with its monthly stochastics deep in single digits. Fundamentally things could get more interesting if US cattle supplies start to tighten down the road. Recall while live cattle futures spreads remain bearish, indicating ample supplies at this time, some of them have been firming ever so slightly. News from the industry is cows continue to be slaughtered, with the ripple effect an eventual smaller herd size.

Given that, BYND could be a long-term buy (Theoretically as this is in no way a recommendation but rather a conversation) as long as investors aren't looking to risk much in the process.

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