Beyond Meat (BYND) - Get Report has had a rough couple of months. Since hitting an all time high of just under $240 on July 26th, shares of the plant-based meat company have plummeted over $120 and there may still be more pain ahead.
"Back in June of 2014, GoPro priced one of the hottest deals of the era at $24. The stock quickly soared to $95 about four months later, again on a short squeeze. Like Beyond Meat, you couldn't locate any shares to sell short.
Then, like Beyond Meat, the underwriters allowed the lock up to expire early, giving Nicholas and Jill Woodman, the founders, a chance to sell 5.8 million shares to a new foundation. The stock never looked back either and it quickly fell to $38 after the early expiration. Oh sure, it bounced back to $66 and then it went into oblivion and it never recovered. By January of 2016, the stock traded at $8."
Speaking from the floor of the NYSE this morning Cramer elaborated on his thoughts about Beyond:
"I like it. Ethan Browns done a great job. So it's definitely worth something. It's just not worth what it's selling for. And a lot of what the hoopla was, was retail coming in and buying it cause they thought it was very, very cool and they got ahead of themselves. There wasn't enough stock. And now it's going to rollover and when there's a lot more stock, it's going to be hard to think of, its about a $6-6.6 billion valuation and maybe it should be two, three. That's a nice accomplishment if it's a $3 billion company. So just be careful. A lot of us share the enthusiasm for the category, but that lot of us includes Hormel, it includes Nestle's, impossible burger and the Tyson."
Watch the video above to see what else Jim had to say about Beyond Meat.
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