Can Luckin Coffee Stock Recover? Luckin Coffee, Chinaâs second largest coffee chain, went public Friday. So, while not every published short report equates to fraud, Iâm suggesting we look at even our favorite stocks with an open mind.Â Luckin Coffee Stock Is Just Not a Viable Bet Anymore Dec. 11, 2020 at 9:57 a.m. And while it was a great growth story then and showed plenty of promise, it was also a dishonest representation of the opportunity investors are seeing in China.Â InvestorPlace - Stock Market News, Stock Advice & Trading Tips So, while the Luckin situation reminds us to be wary, it also doesnât discredit the many Chinese businesses that are absolutely crushing it. Now traded on OTCMKTS, shares in Luckin Coffee stock were up 79% as of Dec. 16 from the August low. Matthew McCall left Wall Street to actually help investors âby getting them into the worldâs biggest, most revolutionary trends BEFORE anyone else. Â© 2020 Verizon Media. The Company applies new retail models for coffee sales and services. Mitt Romney: President Trump’s push to overturn the election is ‘really sad’ and ’embarrassing’, Atty. There are currently no items in this Watchlist. Luckin was the first Chinese stock with accounting issues and it wonât be the last. Instead, just take Luckin as a lesson learned to do better due diligence, no matter how bullish or bearish the market is on a particular security.Â Shares fell as much as 27% in a single day. Luckin Coffee, Inc. manufactures coffee and operates coffee retail stores. The SECâs fine was a slap on the wrist. More From InvestorPlace Currency in USD, Trade prices are not sourced from all markets, Stock Market Alert: Move Your Money Before 2021. Is Nio Stock Above the Electric Vehicle Investment Madness? Before it got caught, there was writing on the wall for Luckin Coffee stock. What can we take out of this?
Luckin Coffee did not admit or deny the charges. On the date of publication, neither Matt McCall nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.Â LK stock has tumbled 35% so far this year. This browser is no longer supported at MarketWatch. Not only did the company defraud investors, but it hadnât even been public for a year at that point. This settlement is big news for LKNCY stock for two reasons: First, it confirms that Luckin Coffee will survive its fabricated sales scandal. Something went wrong while loading Watchlist. 3 Questions to Ask Before Investing, Chinese Antitrust Action Is Just An Inconvenience For Alibaba, Alibaba Stock Woes Won’t Last, So Stay Long in the Shares Into 2021, Look to Starbucks Before You Bet on Luckin Coffee Stock. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the expense, timing and outcome of existing or future legal and governmental proceedings, investigations in connection with the Company; the outcome and effect of the ongoing restructuring of the Companyâs financial obligations; the Companyâs growth strategies; its future business development, results of operations and financial condition; the effect of the non-reliance identified in, and the resultant restatement of, certain of the Companyâs previously issued financial results; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in China's coffee industry or China's food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China's coffee industry or China's food and beverage sector in general; PRC governmental policies and regulations relating to the Companyâs industry; the potential effects of COVID-19; and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Donât get sucked into a low-liquidity over-the-counter asset by trying to catch this falling knife.Â By using this site you agree to the