Anthony Speciale Stock Market Analyst

Better Way to

WEALTH
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Tim puts Beyond Meat to the test (…and recommends something much better instead)

Speaker 1 (00:00):
Hi guys, I’m Tim Melvin. And welcome back to a better way to, well, today, I want to talk to you about something that frankly, I find a little troubling, but by this company, both its products, absolutely about stock. It’s a stock that you really have to avoid because I think it could do some serious damage to your net worth. Now, little background, I turned 60 years old this year and we had to switch doctors for insurance reasons. I’m sure you all have had to go through that.
Speaker 2 (00:24):
And the new doctor
Speaker 1 (00:26):
Wanted to just, you know, you’re 60, we’re going to do a whole bunch of tests. And the original tests said, Hey, you know, you might have, I have some, some blockage in the cardiac arteries. So I go, I don’t, I don’t like hearing that. But they suggested a local cholesterol diet. And then, you know, I really needed to make some dietary changes. Now, since I pretty much would prefer to live on, you know, steak and chicken wings, I kind of knew that was coming at some point in my future. So I very virtuously stopped by the grocery store. The first day of the, to diet. I bought some beyond meat burgers and brought them home.
Speaker 2 (01:00):
And you know, they were
Speaker 1 (01:01):
Awful to be honest with you. I didn’t care for them at all, but I felt very good about myself. Cause it says right on there, no cholesterol, plant-based no meat products. And then I went to see the gari holiday list. And while we’re scheduling all these tests, they want to do, we started talking about diet and it’s told in no uncertain terms that these things are not good for you. They use so much saturated fat. It may be plant fat, but it’s still saturated fat. And it’s not the total cholesterol that cars causes cardiac issues. It’s saturated fat. Once we figured that out, we started looking at this stuff and it’s just, it’s not, it’s not real healthy. And by the way, this goes for all of these, the impossible burger, the beyond meat burgers, whatever other fake meat products are out there, same deal applies.
Speaker 1 (01:50):
Okay. One serving of a beyond meat burger has 270 calories, 20 grams of fat and six grams or almost one third of your daily intake recommended of saturated fat. That’s for the average guy, if you’re on a low saturated fat diet, that’s over half of you tailor required of saturated fat in this one little four ounce burger. Now you can almost double that for the size burgers. We usually throw on the grill on the weekends here in the United States, compare that folks to just lean sirloin. That’s a four and a half grams of saturated fat 200 calories. And it’s just 70% total fat compared to 20%
Speaker 2 (02:33):
At the meat burger.
Speaker 1 (02:35):
So you could actually have a real burger instead of a fake burger. And that would be a little bit healthier. So, and my favorite courses, there’s my new discoveries, Buffalo, a Buffalo burgers. That’s only like 170 calories with two and a half grams of saturated fat. And that does taste exactly like a real hamburger. It’s delicious. As a matter of fact, they make a sausage as well. And then beyond sausage it’s percent fat, five grams of saturated fat, 190 calories. There’s a chicken sausage we’ve been buying at Costco forever. That has 170 calories. Just 1.7 grams of saturated, fat, 12% total fat guys beyond meat. Great. The story, fantastic story. You’re going to just live longer because you’re doing all this healthy stuff and you’re going to save the planet because we all know that global warming is caused almost entirely by cow flatulence. So, you know, you’re just doing so many politically correct and wonderful things when you buy this product.
Speaker 1 (03:33):
And I, none of them are actually true. It’s not that much healthier or any healthier at all than eating regular meat products. If you’re, if you’re careful, if you stick to lean proteins, like very lean sirloin, chicken breast and Turkey breast, you’re taking almost no saturated fat during the course of the day. Whereas with these things, you know, you’re taking about half of your, your intake. If you’re on a low fat diet, now we did run the test. I’m actually fine, but my wife has kept me on this new diet. So I’m going to really love chicken and Turkey breast, and all the cool things you can do with that. And I get a steak as reward once in a while, but yeah, now let’s take a look at the stock because the stock got real hyped up off the IPO ran apart because we are going to this meat-free plant-based future.
Speaker 1 (04:19):
According to the company we’ve got an $8 billion market cap. We’ve sales are just 454 million. So this thing’s trading at 17 times sales. Now think about that. All the hype that we’ve had around, beyond the beyond meat burgers, they only get $454 million worth of sales here in the United States. That’s not a lot. So if we look at this 17 times sales, it’s just ridiculous. Compare that to Tyson foods. This is not a recommendation to buy Tyson. I have a recommendation for you, but this isn’t it. So stay tuned. But Tyson foods right now, one of the largest meat processors in the world, it’s just 64% of sales, right? 17 times sales. This company is not profitable. It’s not going to be profitable for several years. This stock price is almost pure hype and hope.
Speaker 3 (05:10):
Okay? We, in the United States,
Speaker 1 (05:13):
We may be dumb enough to talk ourselves into believing in a plant-based future. We may be that politically correct. The rest of the world, especially emerging emerging markets is not, they’re going to continue to buy real meat products and they’ll probably do less damage to themselves and their cardiac system than you will with the fake meat. Now, let me give you a pic. I’m going to tell you, you’re not going to get this pick anywhere. And I really shouldn’t be giving this pick away for free because it’s a really good one. There’s a company in Brazil called Mar Frick, globe cruise. They are one of the largest beef lamb pork processors on the planet. They own 31% of BRF, which is a very large poultry processor in Brazil. Both of these companies business all over the world. Now mark Rick is seeing some expansion of their export markets because China had bought always a lot of these beef from Australia.
Speaker 1 (06:08):
They’re having a bit of a trade war. So they’re looking towards the west towards the United States, which is then importing the beef from Brazil, from Marford to sell to China. So that’s causing sales to take up a little and it also, there is talk. And I think it’s pretty credible doc that the largest just beef processor in the world JBS may make it buyout offer for Marfa. And sometime in the very near future, this stock is trading at $3 and 78 cents. It’s trading it $4 a share. And yes, I get the Brazilian economy has been a mess, but they don’t just do business in Brazil. They do business all over world. Also Brazil. Their entire economy is a commodity based commodities are on fire, right? It’s eventually going to drive a recovery in that economy. Those markets will lift and take off. This is an four times earnings guys, 20 cents on the dollar of sales compared to 17 times sales for the fake meat product pays a little dividend of about 1% guys. Just buy this stock. Do me a favor, forget you. I mean, you’re allowed to check the stock price like every six months or every year. At some point, this thing’s going to go up through 3, 4, 5 times the stock price because four times earnings is ridiculous. When you get any type of recovery in Brazil, this stock is going to soar and make you an enormous amount of money that you can then use to treat yourself to a steak dinner. Anyway, that’s a better way to wealth. I’m Tim. Melvin. Thanks for watching.