Trigger Long Entry at 80 PennniesNot at all sure of the viability of this company, but probably worth an entry for a moment trade above 0.80. Price plus volume required. Half off at least after a double, should it go.
STKH trade ideas
STKH *** break outthe company announced a deal with GCC and the stock price is moving. pls check the volume - price activity.
$STKH Pops >25% After Visit from Prime MinisterFor Steakholder Foods investors and cultivated meat/cellular agriculture watchers, last week was an important one. On Wednesday, a governmental delegation headed by Prime Minister Benjamin Netanyahu and his Minister of Innovation, Science and Technology paid an official visit Steakholder's main premise in Israel. Therein, he made history by being the first prime minister in the world to sample cultivated fish, and one of the select few to taste a full cut of cultivated meat. Other VIPs that were part of the delegation included Director General for the Ministry of Health (Bar Siman Tov, basically like Israel's Dr. Fauci), CEO of the local Innovation Authority, and CEO of food-giant Osem-Nestle.
As to be expected from such an event, global press has widely covered the event, and it represents one of if not THE highest profile visit to a cultivated meat innovator from a world leader. Beyond the optics of having a well-known head of state tasting cultivated meat dishes in real-time, the visit sends a strong signal to the cellular agriculture space in Israel (where a number of innovators call home, including STKH and Aleph Farms) that they can expect public-sector support and potentially even future funding for research down the road.
For STKH investors, this event was the catalyst shareholders have been yearning for after a relatively stagnant Q1 '23, in which share price failed to bounce back from the public offering closed in January. That said, STKH is +27% for the past month, significantly outpacing NASDAQ's 3.4% gains and the smart food and bev index's nearly 4.5% rise. A clear reversal in MACD is also a strong signal of bullish momentum in the short-to-intermediate term.
Beyond the nice gains from the past few days, I interpret the visit of PM Netanyahu to STKH's HQ as a solid portent regarding LT public sector support for cultivated meat innovation. Ultimately, companies like STKH need external funding to fuel R&D, and this is no easy task in today's current fiscal climate. That said, public sector/governmental support for such efforts presents a clear solution for the funding issues STKH and its peers are grappling with, and Israel may be one of the first locales to begin experiencing the windfall from such support.
On a final note, the recent visit to STKH should be seen as a victory for the cellular agriculture industry as a whole. Food security is absolutely a strategic asset for any nation, including Israel. Once innovators in the field are more broadly seen as the guarantors of food security, the hope is that increased public sector and high-profile support will keep coming, which will accelerate both go-to-market as well as adoption by consumers. Though a technical pullback is likely after STKH robust gains last week, the historic visit by the PM and other senior officials is a big win for Steakholder Foods and the broader industry as a whole.
Is $STKH En-Route Towards a Breakout?Steakholder Foods (NASDAQ: STKH) is the only pure cultivated-meat listee currently trading on US markets. Originally from Israel, Steakholder has been trading on NASDAQ for just over 2 years at this point and has witnessed a decline in share value as sky-high valuations have since come back to earth. As STKH re-approaches a bottom it set in December '22 in the lead-up to a dilutive public offering, investors in this food-tech darling are all asking: what's next?
I'm long on STKH based on my belief that the cellular agriculture space will enjoy monster growth over coming years as scalable tech and government regulations hit the market. From my point of view, it looks like STKH has been tracking a descending triangle chart pattern since right around the date its $6.5m public offering closed on January 10th, where shares were valued at $1.
In the two months since, STKH price action has seen waning investor demand for shares, evidenced by the 24 hour volume indicator at the bottom. Meanwhile, share price has been tracking a descending resistance as a horizontal line of support has appeared around $0.70. This dynamic strongly suggests that STKH is headed towards a breakout--the question is whether in a bullish or bearish direction?
On the basis of its successful public offering that should provide a cash cushion and strong news flow YTD, I get the impression that STKH management has kept their eye on the ball despite the background volatility roiling global equity markets. In Q1 they've announced multiple breakthroughs in their R&D pipeline, as well as a strategic restructuring plan for its subsidiary Peace of Meat. The company continues to gobble up IP that is crucial for the nascent cultivated meat industry as a whole, most recently evidenced by its patent approval in Canada. This is all occurring against the backdrop of STKH's ongoing collaboration with Singapore's Umami Meats, which was announced in Q4 alongside its reception of a $1m grant for R&D from the Singapore-Israel Industrial Innovation Authority.
While STKH may still be recovering from the fallout of its Q4/January public offering, I remain bullish on this stock in the LT as well as potentially sooner, depending on whether price action breaks out upwards or downwards. Regardless, this is an ambitious company striving to capture the future cultivated meat industry that has a promising road ahead for shareholders and *steakholders* alike.
UPSID 'Food's FDA Approval Drives CellAg GainsFor food tech watchers and enthusiasts, November has proven a momentous month. On November 16th, the FDA completed its first pre-market consultant with Upside Foods to determine the safety of their cultivated meat products for American consumers. Significantly, the FDA gave Upside a green light to continue R&D, tacitly signaling that the world's most influential regulatory body takes no issues with food safety concerns vis-a-vis cultured meat products. Though this is not FDA approval, its a strong testament to federal regulators' increasingly receptive stance towards cellular agriculture as a sustainable meat alternative.
Despite notable levels of background volatility as markets rallied around Black Friday and the Thanksgiving holiday season, the impact of the FDA green light was bullish to neutral on relevant actors. Using S&P500 as a rough baseline (+2% since Nov 16), we observe immediate price action movements in response to the announcement. Steakholder Foods (NASDAQ: STKH), a cultured meat pure-play, registered nearly 30% gains in three days following the news. STKH hails from Israel and was the first cultured meat listee on NASDAQ; its strong bullish response to the Upside Foods breakthrough is sensible, given its exclusive focus on the development of tech needed to scale and catalyze broader adoption of cellAg products. That said, over the last two weeks STKH underwent a correction and is currently outperforming the SPY by a slight 1.25% margin since Nov 16.
Somewhat unintuitively, Cult Food Science (CSE: CULT) reacted bearishly to the news, first witnessing double-digit SP dips after which CULT popped on the heels of an announcement about a major European distribution deal for an affiliate that specializes in bee-free honey. That said, CULT has been subject to what looks like serious manipulation since its Q1 '22 IPO and its SP has seen a fair share of wild swings.
Both Agronomics Limited (LSE: ANIC), a investment firm heavily staked in food tech and cellAg, and Tysons (NYSE: TSN) displayed little direct price action movement in response to the Upside Foods announcement. To me, this checks out given that 1) ANIC is a British-listed investment platform and thus more immune to catalyst-driven sectoral swings, and 2) TSN's is one of the US' big four meat producers. Though they have directed significant capital to cultivated meat R&D, they remain first and foremost a mainstream food giant. I would not have been surprised if TSN stock had reacted negatively given its vested interest in traditional slaughtered meet, but in the end TSN closely tracked SPY in the immediate aftermath of the NR.
To tie things up, the Upside Food FDA greenlight is a major catalyst for cellAg players worldwide. It exerted a directly bullish impact of STKH SP, which jumped nearly 30% in response. Other relevant tickers were slower to respond, indicative of either skewing variables or macro dynamics. This is just a first step, once we see proper FDA approval I am of the firm opinion that currently undervalued foodtech companies will see in windfall of investor demand.
