Apparently people love to subsidize a profit-less alternative meat industry. The quintessential Millenial investment thesis.
No idea. I've never short a share in my life, but it will eventually. The fat cats will make $$ on both ends.
Options trading would be available starting next week. Shorting shares though is a different story as some brokerages and clearing houses are entering into agreements to either not lend shares for shorting or to charge an insane price for it for a small period of time post-IPO.
After a wild two day pop, this is the first serious pull back. Still the most awesome IPO of the year!
It's a low float manipulation. ZM's only got 10 million shares for free trading on the market. I was a little slow catching on to the game - but it's been the case with both BYND and ZM and what helps them both is the fact that brokerages and clearing houses are charging RIDICULOUS %'s for borrowing short. I have no doubt that it's a under the table deal with the firms that handled the IPO's. Such a shady game.
We need to catch onto that earlier so we have an advantage. Would be nice to have a good idea which IPO's are going to take off like these have, or at least to limit how risky they are.
Easier said than done. You may not know for days or a couple weeks post-IPO if any of the participating IPO firms/brokerages are making shares available to borrow short. The LYFT short fiasco happened because Icahn sold a chunk of his pre-IPO shares to George Soros via a synthetic swap. LYFT officials were pissed since insiders technically shouldn't be able to sell until lockup expiration. Notice none of that crap is happening now with BYND, ZM, etc.
Ah, thanks for the info. I've never really paid much attention to IPO's because they're much too risky for me. Maybe I'll start to pay closer attention and dig deeper.
These days they're nothing but a wealth transfer to venture capitalists. Back in the day it used to be the company would go public in 2-3 years. Now the VC's are having them hold off and raise multiple rounds of series funding. So you've got a long list of private investors all piled on top of one another who want to get PAID ....... that's where the IPO comes in.
This has to be one of the best IPO’s I have seen for this last month since this launched. Am quite surprised at how high it went. They are charging like $17 for them burgers at Umami Burger
Once shorting is allowed, I expect massive shorting and suddenly CNBC and other media outlets will become concerned with the health aspects of Beyond Meat products, questioning their status as carcinogens, etc. FUD and lies can kill a company.
You raise an interesting scenario. How many times have we seen this happen to Chipotle? Strangely time salmonella outbreaks as some random college student complains that they got sick after eating there.
