Stock price blurs the picture with this one. For various reason but mainly related to for losing exclusivity to generic drugs, Abbvie. I however believe that decline in stock price is unjustified at this magnitude. This is the earnings growth picture.
Now let’s overlay stock price over it with FastGraphs.
P/E 8.2, is quite low as EPS growth estimates still are positive. Lowe but positive. The orange live marks P/E 15 which is considered fair value for most stocks.
Pattern Energy is negotiating about possible merger with Terraform Power (TERP) and their holding entity Brookfield Asset Management. Stock rose to 26 range from 23. I am estimating minimum of 30 dollars for merger effective price. No doubt they will offer new shares also. I bought more at 25 as speculative bet that this merger will happen.
Hype behind Beyond Meat has been strong in IPO of stock soaring 170% on first trading only after IPO was priced up. I noticed this article on Seeking Alpha about it by Ian Croci https://seekingalpha.com/article/4260309-looking-value-great-beyond-meat
He values the company to be worth about 3.6 billion. It is now trading at 3.9 billion. However even if overvalued slightly, it does not seem to make sense after accessible marked is estimated. Optionbull commenter noted that size of beef market in US is 60 billion per year. The company would have gain 25% of the beef market to get the needed cashflow in 10 years. Something tells me that there won’t be just one vege protein stake option in the markets.
Despite my view, I strongly am against of shorting against stocks like these because they are hype stocks. Market can stay crazy longer than I can stay solvent. Some stocks get free pass on numbers like Tesla from the market but not from me.