At the beginning of the week, Modern Plant Based Foods had a real sensation to announce. The still young company received an order from the retail giant Aldi, which wants to sell the “Sun Popped Potato Crisps” in its assortment in the future. Investors initially reacted to this with substantial price gains.
On Wednesday, however, the Modern Plant Based Foods share price went rapidly south again, and this is probably due to a not insignificant detail of the latest news. The whole thing is probably not yet the big breakthrough.
Rejoiced too early?
At the beginning, it was reported on the Internet that the deal would make the products available in the German stores of the local market leader in food retailing. This was mistakenly assumed by some, including yours truly, for which I apologize at this point. As it turns out, and as the press release indicated, the deal is “only” about Aldi’s U.S. stores.
On the other side of the Atlantic, Aldi is also successful and should not be underestimated. Nevertheless, the deal with Modern Plant Based Foods casts it in a completely different light. It cannot be ruled out that one or the other investor initially had the wrong idea and that this caused the share price losses of 8.5 percent in yesterday’s trading.
Will Modern Plant Based Foods shares remain in an uptrend?
It is another setback for the Modern Plant Based Foods share, which only a few weeks ago was able to start a recovery after a long dry spell. Now, the upward trend has not necessarily reached its end, but there are increasing indications that the positive trend is waning.
For example, the share price recently did not even come close to the 2 euro mark, which it had bounced off in mid-August. This does not exactly indicate euphoria among the bulls, and the fact that the upward trend is faltering so early on does not paint a particularly good picture in the long-term chart.