- 22 Jul '19 at 5:30 pm #21319
China’s Luckin Coffee is making it’s first overseas…
[article]1617[/article]29 Jan '20 at 2:21 am #22965
Luckin Coffee LK bounced after Morgan Stanley Upgraded After CoronaVirus Sell Off
Close 39.61 +2.49 (+6.71%)
Luckin Coffee Inc. (LK)
Morgan Stanley lifts its price target to $42 from $27.
Analyst Lillian Lou estimates the value of the Luckin Tea franchise stores is $15 per share.
LK 52-week trading range of $13.71 to $51.38.02 Apr '20 at 8:27 pm #23373
[size=5]Luckin Coffee stock collapse Over 80% after investigation finds COO fabricated sales[/size]
Luckin Coffee disclosed that an internal investigation has found that its chief operating officer fabricated 2019 sales.by about 2.2 billion yuan ($310 million).
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.”
Shares were down nearly 72%, wiping out nearly $5 billion from its market value.
The investigation found that Jian Liu, Luckin’s chief operating officer, and several employees who reported to him, had engaged in misconduct, including fabricating sales. Liu and the employees implicated in the misconduct have been suspended, and Luckin said it will take legal action against those responsible.
Jian couldn’t be located for comment.
The 2½-year-old company, which had hoped to overtake Starbucks as China’s top coffee chain, said investors should not rely on its prior financial statements and earnings releases for the nine months ended Sept. 30. The coffee chain previously said net sales for the first nine months of 2019 were 2.9 billion yuan ($413 million).
Market Summary > Luckin Coffee Inc – ADR
6.92 USD −19.28 (73.61%)
Low 4.9009 Apr '20 at 1:09 am #23429
Luckin Coffee $LK halted at 9:15 a.m Eastern time.Tuesday for pending news. – still halted at Wednesday Close
Was up 0.9% in premarket trading Tuesday before it was halted
There is no time limit for how long a stock can be halted for pending news.
Downloads of Luckin’s app have skyrocketed in recent days as Chinese consumers rush to claim the free drink offered as an incentive to add the app, according to Reuters.
Luckin and the Nasdaq Exchange declined to comment.09 Apr '20 at 1:10 am #23430
Goldman Sachs said Tuesday it would seize and sell Luckin Coffee shares from Luckin’s co-founder and chairman, Lu Zhengyao.
Lu is trying to distance himself from his other companies to limit the fallout, the Financial Times reported Wednesday. His other businesses include China Auto Rental and Ucar.
China Auto executives told FT that Lu would consider stepping down as chairman of the car rental company as a way to convince investors of the business’ independence from Luckin.
GS said Lu defaulted on the terms of a $518 million margin loan.
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