Plant-based meat makers are more negatively impacted by the supply chain crisis than real meat producers
CNBC reported that experts predict that plant-based meat will remain more expensive than real meat for the next 5 to 20 years. It's because plant-based meat makers like $BYND and others require more time to reach economies of scale.

One of the biggest obstacles to creating huge interest in plant-based meat is to make the meat taste the same as real meat. The texture and flavor are hard to come by. The plant-based maker that is the closest to reaching that will dominate the space, and currently, that's Beyond Meat and Impossible Meat.

While they got the taste and texture down, getting there requires higher volumes of production and lower cost of ingredients. Currently, their production isn't high enough and their ingredient costs are very high.

The reason why they can't ramp up production fast enough is that the supply chain issues make it harder for firms to get manufacturing equipment. At the same time, it's taking longer to build new production facilities. As for the ingredients (like peas and other plants), they're hard to come by because they're only produced in a few countries.

The plant-based meat industry has a massive Catch-22 issue where you need the demand to be incentivized to produce more and at the same time, you need to produce more to be able to price them at a lower price and create more demand.

As $TSN $K and other big food manufacturers get into the plant-based meat industry, the immense capital and expertise coming in will play a major force in driving the cost of plant-based meat lower. But from observation, Big Food is struggling to make its plant-based meat products as attractive as Beyond Meat's and Impossible Foods's products mainly because many aren't aware that Big Food manufacturers make plant-based meat products. This makes Big Food manufacturers reluctant to pour more capital into the industry.

It will be interesting to see the price of plant-based meat be at par with the price of real meat in the future. However, it will be a long time before we see that happen.
Very interesting read. I bet the steep increase in fertilizers that we've seen since the Russia-Ukraine war started will add to this and make it even tougher for plant-based meats to hit good price levels.
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$BYND write-up (domination + providing halal meat to Westerners)
Despite Big Food's attempts at providing competition to Beyond Meat, they've failed. People looking for plant-based meats overlook Morningstar Farms (by $K) and Raised & Rooted (by $TSN) and only stick to Beyond meat or Impossible meat.

One reason for Big Food's slow start in entering the plant-based meat market is that they haven't ramped up their marketing for those brands. Many of them continue to emphasize their meat products and other products that they've been selling for a long time. Marketing managers in those companies seem hesitant to go head to head against Beyond Meat and Impossible Foods.

As time goes on, Beyond Meat continues to maintain its pricing power and dominance in the industry. I myself continue to consume their products and I see many others consuming their products in the future.

Compared to real beef patties, Beyond Meat's products are much more expensive. However, compared to halal meat, Beyond Meat goes head to head with the meat sold by halal butchers. In the West, halal meat is hard to come by. You have to find a halal butcher (and they're not many in America despite the growing Muslim population). Thankfully, the Islamic Services of America certified Beyond Meat's products as halal. This makes Beyond Meat a great alternative for many Muslim families that want to be able to have meat while following the Islamic tradition of only eating halal.

And as the price of halal meat grows due to inflation, I have a good feeling that Beyond Meat will choose to keep their prices the same or even continue their push to make plant-based meats as cheap (if not, cheaper) than regular meat. The economics of plant-based meats can be improved. Assuming that $BYND and other plant-based meat makers have favorable economies of scale, more demand will mean higher margins for the company.

What are your thoughts on Beyond Meat? Do you see more Muslims warming up to plant-based meats? Do you see Beyond Meat continuing to dominate the plant-based meat industry, or do you see Big Food companies dominating the industry in the future?
Comments on Inflation from Company Executives
Inflation is not slowing down. Last week, the BLS reported a 0.6% rise in the CPI during January, well over analyst estimates and bringing the annual rate of inflation to 7.5%.

The latest Fincredible MacroTalk goes over company earnings calls to analyze what executives are saying about inflation. Here are a few quotes from the post regarding cost inflation drivers as well as planned price increases by companies.

Inflation Drivers:

Future Price Increases:

If you'd like to read the whole post, here's the URL: Fincredible MacroTalk February 9th: Inflation

Upcoming Earnings Calendar (Feb 7th - 11th)
Hey guys!

A key week is ahead of us! Here's what I'm interested in:

  • $APPS - One of my largest holdings. I'd like an update on the progress of single-tap and the tests they were running with Meta $FB. I'm also interested in seeing how their device footprint is expanding after their latest deals.
  • $DIS - They've invested heavily on Marvel and Star Wars series for Disney+, so let's see if this translates to lower churn and higher growth.
  • $NET - Really interesting stock but the valuation seems too high. Let's see if there's a good opportunity to enter post-earnings.

Good luck!

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.





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February earnings
I think upcoming earnings are going to be really important in this volatile market. Companies will likely get punished (further) on even slightly bad results or outlook, and I'm hopeful strong earnings like we saw with $TEAM or $AAPL will buoy the overall market or at least software sector that I'm playing close attention to.

Personally, I have a handful of companies on my buy list including $CRM, $COUP, $ESTC, $SMAR, $POSH, but will only do so once they make it past earnings either scathed (lower price) or unscathed (peace of mind) :)

So we've put together our most anticipated earnings for all of Feb!

Keep an eye out!
21: $UIS
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My best 2021 investment
Hello fellow investors,
There is no secret that 2021 was a remarkable year for investors and was especially good for long-term dividend growth investors like me and probably many of you.

I want to take this occasion to write down here and share my three best investments of 2021:

Best by % Return
AvalonBay Communities $AVB
This Residential REIT returned an impressive +58% over the last year, and this doesn't include the juicy dividends I keep receiving any quarter.

Best by $$$ Return
Pfizer Inc. $PFE
The company doesn't require any presentation, I believe :) It stamped an impressive +50% return during 2021. It's lower than $AVB but considering my holding in $PFE is way bigger; this is my best-returning investment by $$$ point of view of 2021

Best Dividend Increase
Best Buy Co. $BBY
The stock didn't perform well in 2021, but it nailed the dividend with a juicy +27% increase. Massive!


Honorable Mentions:

Essex Property Trust $ESS +48.7%
The Home Depot $HD +47.8%
Microsoft $MSFT +43.8%
Prudential Financial $PRU +41.1%
Tyson Foods $TSN +40.8%

Let's hope for a similar 2022

Curious about my portfolio? Check my profile or read this memo:

Do you Love Dividend Stocks? Then follow me here on CS
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Covered Calls ๐Ÿ’ฐ
How many people here periodically sell covered calls on their dividend stocks?

I believe it is an amazing and risk-free strategy to generate cash flow on monthly basis.

My favorite stocks for covered calls:

Opinions? ๐Ÿค”
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