Chinese Fraud Luckin Coffee Is Still Growing 1.5 Years Later
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- เผยแพร่เมื่อ 30 ต.ค. 2021
- In this video we give an update on Luckin Coffee, a Chinese coffee company that was exposed as a fraud in early 2020. They were delisted from the NASDAQ following the fraud being exposed and in February of 2021 they finally went bankrupt. But just when it looked like things were over for the company, they started to make a massive comeback and their shares have increased more than 900% from the lows.
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They filed chapter 15 not because of running out of money. Actually they had 4billion CNY in their bank account then. But the money is restricted by Chinese laws of foreign capital control, thus not allowed to be transferred out of China. So they filed the bankruptcy after which the ministry of commerce of PRC allowed their money out, to compensate foreign bond holders.
Exactly. Well said. And Funds were Independently audited by JPL approved by US courts in NY and SEC. 3 lengthy public JPL (Caymans) reports were released over the last year (not secret insider info as mentioned in video)
But it doesnt change their business model, which is now receiving a lot of bad rep.
@@hoangle2483 They have achieved store-level positive cash flow in 2020, and store-level positive profit in 2021Q2, even better in Q3. The headquarter cost is still high, due to advertisement campaign in 2019-2020 and then legal cost of several hundred million dollars recently. But the store-level is already above the water.
Now bear in mind this company is just 4 years old. I'd say it's still early to say their business model is failing.
@@blackartist7 Glad some knowledgeable people on here sharing the correct information.
Prob a shell company
Fool me once, shame on...shame on you. Fool me-you can't get fooled again
The words of the old dubya
probably not a good idea to buy OTC (previously pink sheet) stocks unless you know what you're doing
When Hertz declared Bankruptcy I took a small position just for kicks ... it paid off ... in a small way but it paid off. Not so sure about Luckin ,,,if I trusted China (not that you can completely trust the US ) I would take another SMALL position...just for kicks. Maybe I should get a life ... just for kicks.
Yep, u definitely deserve the kicks, since you are already here, but some Nikola shares too.
Totally understand idea. In for a penny in for a pound. Something to watch. Not for investment for game
@@leonleon2021 I thought about it!
@@zzhughesd Yes. It was in my 'fun; portfolio!
I’d trust my life savings with Wall Street versus investing a dollar in a Chinese firm.
Partial fraud. It makes money, but not as much as they said they did.
Love your choice of topics mate. Always interesting and relevant. Keep it up.
ehh has a poor track record of financial honesty, and still loses money. thats a pass for me
Fraudulent Company: *exists*
Wall Street Millennial: *ah shit here we go again*
Their coffees are actually pretty good and have lots of followers… young followers. The company has a future.
I've been to China, Luckin coffee is good and the Chinese like it a lot. It's very popular, partially for being the company that screwed over the Foreign stock market
They cheaper than Starbucks and there isn't much competition yet, Chinese are new to coffee so there is a lot of growth potential.
Really appreciate your content.
wouldnt trust any stock out of china. way too much risk for a few yuan
you should earn rupee 🤣
Still a better valuation then tata motors
@@asimqazi1943 tata motors is like one of 100 Tata group companies . Can't even be compared to tata
Luckin coffee is easier to order for takeaway and cheaper than Starbucks, that's why I ordered it. Among UK and Chinese coffee chains, I'd still place it pretty much at the bottom for taste though.
Chinese that can actually realize the flavour of what they're drinking go to the little independent stores in Shanghai, which can be really quite good.
I bought some shares soon after its IPO and saw the dramatic drop. I bought some more when it bottomed out. My cost basis now is $5.80. I am 146% ahead😀
I didn’t think it was possible for the second largest coffee chain to be unprofitable in China. I also hoped that Starbucks would buy the chain but now it seems to be unlikely for antitrust issue. I am glad they are crawling back.
I like to take small speculative positions in companies that, for reasons, take a huge hit, but continue to operate. Their stock price typically gets over-punished, and makes a good buy. You can see a small microcosm of this during earnings reports. If a company misses expectations, even by a tiny amount, you can often pick them up at a discount, only for the price to rally back days or weeks later. Most investors are dumb. Most investors are late to the party, so their actions exacerbate the price movement to over-/under-shoot. Generalized, buy when there's blood on the streets.
如果你持有到现在那将是个聪明的 决定。因为我认为他会很快上市
If I lived in China I would’ve definitely done some research, visited one of their stores together with friends, and maybe talked with some customers and the employees. But I don’t speak mandarin and don’t live in China so I won’t be aware of the Luckin Coffee comeback before it’s covered in Western press, and then it’s probably too late
In China, Luckin’s ads are everywhere, in street corners, billboards, elevators inside business buildings, etc. It offers drinks that are more preferable to Chinese people than Starbucks. Its business can continue due to customers actually like the product and service.
@@allansh828 are they? I went to.some beijing ones and tbh the stores and clientele looked a little bit more lower middle class.
luckin coffee is quite popuar here still. and the'yre opening new stores
增长非常迅速
Because that company actually have a product and have a sizeable actual sale. Unlike real fraud, like Nikola.
It’s a pump and dump.
The chain has now overtook Starbucks to be the largest coffee chain in China.
The US Securities and Exchange Commission charged Luckin with fabricating untrue statements from April 2019 to January 2020 regarding revenue, expenses, and net loss so as to deceive investors about Luckin’s financial performance.[4] In December 2020, China-based coffee retailer Luckin agreed to pay USD180 million to settle charges of fraud and accounting irregularities.
When Luckin Coffee caught with fraud and delisted, I actually thinking this is a good opportunity to buy the stocks, it is cheap, so so much cheap, they replace the management, and Chinese coffee shop market is still young and growing, and Luckin is in good position to capitalize it with its massive network of shops. Too bad, I have no access to buy Luckin stock here in my country.
This is a huge comeback story guys.. future is bright for Luckin
How does the retail market buy Luckin. My understanding was it is trading normally since middle 20. But any exchange. Am I wrong ?
Delisted or suspended. I’m puzzled
Weird investors, it feel like they didn't had much effort in collecting their capitals to throw it away in a Chinese company that has a record in huge fraud, even now no one can verify the earnings numbers the company published!!! Really strange phenomenon
They’ve come out with two full years of audited earnings FYI
Excelllent video! Are you thinking about providing an update on Luckin after they posted their Q4 2022 and full year results two days ago? Stock has literally doubled since this last video and the company is now reporting strong growth and profits.
What is the next one to crack Faraday EV?
Could you make a video on Perth Tolle's Life + Liberty Indexes?
this got De-listed from the S&P in 2020.... I had bought at like $2...but had to sell.
it did this all in the everything bubble where nothing makes sense
Chinese accounting standards are very low, there is no auditing, "the numbers are what we say they are" didn't sit well with the US SEC....
Luckin isn't 100% fraud, they have stores and product. Their coffee is actually quite good. It's just that they over stated their revenue and sales.
good by Chinese tastes. I bought it for takeaway because it was more widely available and cheap compared to Starbucks.
Defrauding US investors and giving their product away free to millions of Chinese. Yeah, sounds legit to me
@@cbrtdgh4210 wtf are you talking about lmao starbucks is definitely more widely available than Luckin. Also it cost about the same the price difference isn't enough. There is a starbucks everywhere you go in China, but not Luckin. love how you just came on here to spread lies. foh.
@@salamandiusbraveheart4183 well someone gotta do it! The Chinese people just sick and tired of American companies defrauding Americans, so they decided to get in on the action. You acting like if this is the first time a fraud happened in the US. Worldcomm, Enron anyone?
@@HEEHEEBOII I lived in Shanghai for four years you nob. It's easier to get it by takeaway.
Go check if they are legal? It’d make a great episode
Luckin coffee is going to be the come back story of next year.
Please do an update to this video!!!!!
They are "Weekend at Bernie's" this company to success.
Guys. Someone tell that Italian investor who bought with some 90k dollars before the drop now can sell off.
Good ending after all.
It’s fraud again
Surprised they didn't change their name
Wow, best Chinese stock to own this year 😁
is their coffe any good?
I see no froth in this market whatsoever. It all seems absolutely rational to me.
It’s still burnt coffee, contacts in PRC are skeptical that business has bounced back. Starbucks still going strong, even more so after LC’s first debacle, so buyer beware.
This is the same company that filed bankrupt
Pump and dump
deja vu i seen this place before
What aren’t they telling.
The way everyone present this it’s like it’s an Enron or Theranos. But it’s not. They actually have thousands of retail locations and sell a viable product. It’s similar to Waste Management and a couple others that have accounting irregularities/fraud. Not a complete fraud like Enron. So your statement that Luckin is a complete fraud is off base.
well i guess it is partially fraud. But hey, fraud is fraud. Buying their shares rn is like telling them that, we tolerate this kind of behavior, which means they would probably repeat the same offense in the future.
Having seen your first video which was excellent and now seeing this one; at the point one has to say "take it with a grain of salt" and "if you can believe the numbers", this has CCP insiders written all over it. Firing all the figure heads would not have been enough to restore the brand. All current reports on financing and auditing should be deemed extremely opaque and suspect.
I love how this same thought never comes into your head when there are numerous frauds in america every year. I will always maintain that there are only 50 million real people in the US. The rest are state department drones.
I mean luckin coffee is miles better than nikola ride and all those shit companies. It's bad but atleast they have a product. Also ccps treatment of evergrande has really redeemed them in my eyes. They have sold off all their profitable investments to pay off debt and now are holding the ceo accountable for prior period bonuses and asked him to pay off some of the debt. Compare this lehmann executives and the usa system is laughable
@@slenderman1309 "I will always maintain that there are only 50 million real people in the US. The rest are state department drones." Wow, you really need to get a grip on yourself or get a bigger tin foil hat.
@@asimqazi1943 You clearly have not seen Wall Street Millennials first video on Luckin Coffee and if you have, you are too willing to ignore how bad the fraud is. For the company to actually be in operations still raises many red flags. If you think Evergrande has been redeemed; sorry, you're leaning towards being a CCP shill. Again, there numerous videos (not only by WSM) that cover the problems associated with China's Real Estate markets. "Transparent accounting practices" is not something you will ever see associated with Chinese companies by a rationale investor.
@@richctv first the entire management was fired so technically the people doing the fraud are not the anymore. A brand is not fraudulent its a brand. And the evergrande situation is being investigated by the ccp with pwc a big 4 audit firm. Unfortunately these things happen all the time as the auditor scope is limited to finding material misstatement and have no responsibility to uncover fraud (it is in their audit report as well). Being an auditor for the big 4 and a consultant I have more experience is this regard than wsm which is a fantastic channel on its own right.
and yet people still buy stock based on fundamentals. It’s all pump and dump, so look for opportunities and get on the ride.
luckin is tsla of EV, soon will be visible every where, but they don't mention their ambition.
I bet Starbucks hate them.
Luckin is far from the only company that does this - chinese companies do not have the same reporting standards and it was only until outside regulators did a dive on their financials that the fraud came to light. There are 200 chinese companies, worth something like $2 trillion (allegedly) that will be kicked off the stock exchange for failure to disclose records...and they're trying to run out the clock hoping the US regulators don't follow up.
just say no to china stocks. Buy Starbucks or Smuckers(Dunkin') instead.
Mhm, them being American means no chance of accounting fraud. Yup.
fool me once, shame on you. fool me twice, shame on me.
If the biggest players of the market are irrational then the result rather expected to be the same
I don't know if this a bad or good story .....Rise from ruin.......should be good.....but I don't know.
I would never reward these shameless liars with my capital. It's disgraceful that Chinese companies can be listed on US exchanges without being subject to independent audits. UNLIKE EVERY OTHER COMPANY ON EARTH.
Yes, that would definitely stop accounting fraud. Accounting fraud has never happened in the US. No, not ever.
@@slenderman1309 please stop taling. It would help mitigate it, and just cuz it happens in the us with consequences doesnt mean china can without reprocussions
@@jimmyc6409 "With consequences". A fine for a fraction of the gains and walking away scot free lmao. No, it would not mitigate it. Fraud happens constantly in your own borders, if you still haven't stomped it out how exactly will you now. Let's be honest here and just say you want the Chinese (companies) out, lets not pretend this is about fraud. Just like Huawei wasn't about spying and the same for tiktok, its about securing your own oligopolies at home.
Money has no nationality
Wish Luckin Coffee is available here.
fool me once...
Pass
It's a solid proven business model and a innovative management lucken will bounce back how can you fail selling coffee ,its a buy for me.
They failed once 🤷🏻♂️
@@toolegittoquit_001 just a spill will be back at 90 soon
there's a new luckin offee in my school
Fraud us temporary.
who cares money printers goes brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Yeah, the Fed can’t print anymore.
I just got a lawsuit settlement letter against luckin. Anyone else ?
Why is the like button gone
It just a game. Whoever is last to HODL will lose.
"What are the odds of that happening again?" Line from The World According to Garp. He was house shopping with his wife when a plane crashed into the home they just drove to and he immediatetly told the realator the woutd buy the house.
USA: take our money
China: OK
Allure you buy it, then crash. The numbers may be fake.
ThE eFiIcIeNt MaRkEt ThEoRy ...
Lucky 🍀 coffee ☕️
i sold my luckin coffee at 2$ after so much DD and I also sold Hertz at 0,4$ after Carl Ichan sold his shares. Look at me now :S
Carl Ichan doesn't really know what he's doing
Buy didji
Luckin Coffee can take on Starburst Coffee
I bought 100 at 30$ and sold at 50$ lmao what a harrowing experience idk what i was even thinkin at the time. Fomo
It sells pretty well in China, when I was there I always buy coffee there cheaper and easy to order
So true but I'm still gonna buy it. Nah bro just kidding 🤣🤣😂🤣.
The market is crazy
Luckin still around
Nikola still around
Crazy
It’s not fraud, it’s optimism
American pay Chinese coffee money.
Lol… fool me once…..
What do you mean "trading over the counter"??
It means the Company’s shares aren’t available on the usual Exchanges.
@@toolegittoquit_001 so how are they traded??
@@DeathCrateRSA using brokerages connecting buyers and sellers.
How is it a fraud then?
Lol
Can't convince me to buy Chinese fraudulent stock
all stocks are pump and dump. Insiders pump up prices when they hold a large amount, and they dump after selling most of the stocks. Just enjoy the game.
and amercian stocks are not fraudulent at all huh ?
The market is irrational!!!!
Luckin to the moon 🚀🚀🚀🚀
Dude go get some sleep LMAO...........The first thing arriving home from work is to watch WSM videos
Why weren't they shut down back when this shit happened?
Even starbuck loses money in china
Both businesses mentioned were run by women.
Lets Go Brandon !!