After purchasing my first shares of Beyond Meats, I became really interested in the industry. There has been a ton of talk about meat substitutes lately, and I believe that these types of products will certainly have a place in the future.
Initially, I tried to find similar companies in the UK because I wanted to be able to try their product out before investing. I spent quite a bit of time looking, and a week ago, I managed to find a really promising company – Tattooed Chief. They might not be based in the UK, and their products might not be available here just yet, but, hey – they make for an exciting long-term investing opportunity.
And, today, we’re going to have a look at them – who they are, what they do and what I am planning to invest.
Before we begin, I want to give you a quick reminder to like and share this blog if you enjoy my content – it really helps the channel grow in the long-term.
Most of my viewers are probably already familiar with the whole “meat substitute” business since we already talked about it in our Beyond Meats video [and, if you missed it, just click the link that’s up on your screen right now]. But if you are new or don’t have the time to watch it, here’s a quick rundown – these companies aim to create a sustainable alternative to meat, which doesn’t involve livestock farming or harming animals in any way.
So, let’s talk “Tattooed Chef.”
I just want to throw out a quick disclaimer that, since this is a pretty new stock right now, there is some risk involved – more risk than the companies that we usually discuss here on this website. However, they are giving a lot of positive signals, and I have a lot of faith in them.
Tattooed Chief (ticker symbol TTFC) sells frozen packaged foods, or, more specifically, packaged plant-based meat-substitute meals. The company was founded two years ago in California by Sam Galletti – a man with over 35 years of experience in the food industry.
Tattooed Chef Financial Stats
- Today Change: +1.85 (9.12%)
- Market Cap: 1.45B
Also, I’d like to point out that, even though the company isn’t getting a lot of analyst coverage just yet, but this will come with time. Usually, when more analysts look at a stock, the more target bumps it gets.
I feel that, right now, Tattooed Chef is a bit undervalued and overlooked by most people, and this presents an excellent opportunity to get some shares cheaper.
Now, let’s look at some recent developments:
- Recently, Tattooed Chef announced that they are expanding their product range. Of course, this is about their meat alternatives and innovative clean-ingredient approach. Or just a fancy way of saying “plant protein that looks and tastes like meat”. Anyhow, this is obviously exciting news, because it allows them to tap into the meat substitute market. They’re offering pepperoni and sausage crumbles, cauliflower pizza bowl and sausage breakfast bowl. And, yes, this is all plant-based.
- They teased the release of three more brand-new meat-substitute products in 2021. They’re hard at work, and they plan to keep pushing into the new market, which is also a great sign.
Now, for the one piece of bad news about this company:
On November 19th, Kerrisdale Capital announced that they don’t believe Tattooed Chef will be successful in the long-term and that all of their positive metrics are due to the current global issues.
And yes, the crisis is definitely aiding Tattooed Chef, you can’t really argue with that. But, I believe that there is a bright future in the long-term future for the entire industry. With every passing day, there are more and more publications highlighting the important role that meat substitutes could play in creating a sustainable future for the planet. So, if nothing else, the publicity is definitely there. People are bound to go and test the product out, which is about as far as I’m willing to go with my predictions.
Now, if you’ve been following my blogs on long-term strategies, you know I believe that nobody can really predict the Stock Min the long-run. We can think about consumer trends, and we have to consider moats and reports. Everything else is just speculation, which we don’t do here.
And, while we’re on the subject of motes, I want to take the opportunity and mention that while Tattooed Chef is in the meat-substitute industry, they are not in direct competition with the big players (like Beyond Meat), because they’re looking to sell frozen meals. That’s very smart of them because it allows them to tap a relatively new market and possibly get established into a super-solid position. Besides, a lot of people today are much more likely to purchase ready-made meals, rather than separate ingredients. Not me – I do enjoy preparing my meals at home, but I know that a lot of people just don’t have the time and patience. Or they just don’t enjoy cooking. Either way, there is a market, and there are a lot of opportunities that Tattooed Chef can capitalise on.
So, if it’s all just great news, why is the stock going down then?
Well, there is one piece of “bad” news, but, in my opinion, it’s just people looking to cash in on the latest bump in price. Not long ago, Tattooed Chef’s price went up by quite a bit, and now short-term investors are selling off their shares and looking to move on to the next company. Besides, there’s nothing really troublesome in the stats and reports, so I don’t feel like there’s a bigger problem that’s happening “behind the scenes”.
As a matter of fact, this actually presents us, long-term investors, with an excellent opportunity to buy more shares for cheap. I often bring this up, and I feel like every time there is a wave of people going “Oh my god, the price is dropping, abandon ship!!” I need to point it out. We are in this for the long-term. We buy when the prices are low, and we hold.
Besides, there is still a lot of buzz around Tattooed Chef, and you can find tons of articles about them online. You’ve got both people who are like me and are very optimistic about their future and, of course, some are quite negative. But there are also a lot of people out there who are very negative about Musk and Tesla’s future, or even about Zuckerberg and Facebook. That’s why I always say that you should look at the numbers and the market, not at the articles. I’m just bringing this up to show you that we’re not talking about some no-name company that might disappear tomorrow. All of this buzz means that there are a lot of people out there who are looking into them and trying to figure out what’s what.
So am I buying Tattooed Chef shares at the current price? My answer is Yes.
All things considered, I feel like $20-$25 is an excellent price for Tattooed Chef, and I am looking forward to making some great returns in the future. Besides, they manage to tick most of my boxes for a good long-term investment! They’ve got:
- A great product, placed in a rapidly growing market
- Experienced and passionate leadership
- Promising financial stats
- Great opportunities
But I am still considering it as a speculative stock, so I am buying slowly and carefully, bit but bit.
As well dont forget I am not a financial expert, this is only my opinion and you all need to do your research and analysis.
And, that about wraps it up for today! I hope that you all enjoyed this blog and that you found it useful. If you have any ideas for future blogs, or if you want to hear my opinion on a particular subject, don’t hesitate to tell me in the comments below and I’ll see what I can do!
At the end here, I just want to do a quick plug for the investing platform that I recommend to investors of all levels – Etoro. Etoro is very simple to get into, offers an excellent variety of investment options.
I want to give a big “thank-you” to everyone who is still watching this far in the blog – you guys are the best! Please remember to give the blog a thumbs up and share it with your friends – it really makes a difference, and it helps our community grow.
Thank you all for watching, and until next time!
© Lifestyle Tips by Antoaneta
Recommended for further reading:
- Shares Made Simple: A beginner’s guide to the stock market
- Smarter Investing: Simpler Decisions for Better Results
- Intelligent Investor: The Definitive Book on Value Investing
- The Five Rules Successful Stock Investing
- How to Make Money in Stocks: A Winning System In Good Times And Bad