Luckin Coffee ☕️ (LK)

I to own Tesla which has been a great month for us :+1:t2:
I’m also in Beyond meat which many say is the Tesla food version :grinning:

I was planning of making LK a decent size, for a long term investment. Luckly I sold out of all

What’s the source of the PDF file? That’s some very aggressive language.

MuddyWatersResearch.

It caused LK to tank to 26 dollars. Got the opportunity to get in. :crossed_fingers: Monday rebuttal.

Oh sorry - missed that!

So what are my options here? I’ve been following Luckin for a while waiting for a dip.

I was hoping that dip would come once I was on the new Freetrade platform, as they’re not currently available through the app.

That obviously hasn’t happened. So, if I want to buy in, I’d need to set up a brokers account elsewhere. But that would be outside of my ISA, so I’d be losing my tax benefits. Is that right?

Any other way around it?

Too late for me. I topped up today, I know they would have been hit hard by the chinese crisis and maybe at a delicate time in their development. But its fingers crossed for a recovery, o think I’m right (always lol)

here comes the rebuttal.

Yes sir. They crashed it to 26 now it’s back up to 38 premarket.

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It’s up 50% since that fake news

More Chinese markets please!
Luckin coffee (LK)

Request to add Luckin (Symbol: LK) I just read they will be trading on NASDAQ shortly and as a Starbucks Challenger, it would be a good addition.

85% down in pre-market… :face_with_monocle:

wow!

Looks like fabricated sales in 2019 of around RMB 2.2B, as well as fabricated costs and expenses…

MW right it seems.

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Muddy Waters are not to be messed with.

If you want to improve your company analysis skills, their plain mega-page reports are excellent reads: https://www.muddywatersresearch.com/

Luckin hired forensic accountants.

"Luckin said the internal investigation is at a preliminary stage and its estimate of the fabricated sales has not been verified by its independent auditor. The company’s special committee has retained Kirkland & Ellis as its independent outside counsel and FTI Consulting as an independent forensic accounting expert.

"Muddy Waters Research said in January that it bet against the stock in light of what it described as fraud and a “fundamentally broken business.”

"Luckin responded by calling the short seller’s report “misleading” and “false.”

““Luckin shows exactly why we need short sellers in the market. We believed this report was credible when we read it, and that’s why we took a position,” Muddy Waters founder Carson Block said in a statement to CNBC. “This is again a wake-up call for U.S. policymakers, regulators, and investors about the extreme fraud risk China-based companies pose to our markets.””

Meanwhile, @Kraftskiva, another short-seller/research firm known for some good calls, may be long Luckin:

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Very interesting - thanks for highlighting!

Chanos was short:

Kynikos Associates Founder Jim Chanos told CNBC on Thursday that he just closed a bet against Chinese coffee chain Luckin on Thursday after first taking a short position earlier in the year on advice from fellow short-seller Carson Block and his firm, Muddy Waters Research.

https://www.cnbc.com/2020/04/02/jim-chanos-says-he-covered-bet-against-chinas-luckin-coffee-amid-70percent-plunge-thursday.html

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Fast forward to today, and one particularly weak point stands out: auditing procedures. Securities and Exchange Commission Chairman Jay Clayton and William Duhnke III, chairman of the Public Company Accounting Oversight Board, have often noted that U.S. regulators are prevented from inspecting audit work and practices of audit firms in China. They have called for more cooperation from China, to no avail.

All foreign companies that list on U.S. exchanges must have their financial statements audited by an independent firm. Multinational companies are generally audited by firms in their own country. This is true regardless of whether the firm listing in the U.S. is based in China, Russia, Turkey, France or anywhere else.

Luckin Coffee up 49% today